"Official data released today shows that Australia's demographic disruptions caused by the pandemic have normalised, pointing to the importance of a skills-focused migration program," said Innes Willox, Chief Executive of national employer association, Australian Industry Group.
"The pandemic caused a profound demographic disruption to Australia. In its first two years migration and population growth collapsed due to our closed border. In the subsequent two years they surged as we reopened and the economy returned to life.
"The data shows this down-and-up disruption has largely worked its way through, with population and migration patterns now returning towards normal.
"In the first quarter of 2025, Australia's resident population of 27.5 million people was only 0.27% higher than expected given our long-run trend.
"This should be kept front of mind in discussions over Australia's migration program.
"There are some anxieties in the community regarding our ability to supply the needed housing and public infrastructure for our population. These are entirely understandable given the fall in our home building rates, the delays and cost blowouts afflicting many infrastructure projects, and the mounting red tape tying up delivery of both.
"But the demographic data shows the problem lies with supply, not demand. Australia's population today is on the same track it has been for over a decade. We have simply failed to build at the rate our long-term demography requires.
"Indeed, constraining migration is likely to make our building problems worse. Skilled migrants play a critical role in filling chronic workforce gaps afflicting the construction and industrial sectors.
"Electricians, carpenters, plumbers, steel erectors, crane operators, vehicle drivers, floor installers, tilers, painters, glaziers and construction managers are all officially classified in national shortage. We have little prospect of raising our build rates if we further cut off the supply of these critical professions.
"The Australian migration program plays a key role in filling these gaps. We must focus on attracting the migrants with the skills we need to provide the infrastructure our demographics demand," Mr Willox said.
