The good news is we are going to live longer; the bad news is our economy is going to be under significant strain as it struggles with the increased demand on care services.
New figures to be revealed this week as part of the Fed-eral Government’s Intergenerational Report will show Australia will be home to 40.5 million people in 2063, but it will be an older population, growing at just 1.1 per cent over 40 years.
Migration is also tipped to slow, with levels not expected to return to pre-pandemic normality until the end of the decade.
The report will warn that the ageing population will be a continuing economic challenge, with the number of Australians aged over-85 trebling over the period, and the number of over-65s doubling.
Life expectancies are forecast to rise to 87 years for men and 89.5 years for women by 2062-63. An increasingly older population will boost demand for quality care and support services. The care economy could increase from about 8 per cent of GDP today to about 15 per cent in 2062–63, according to the report.
The Government says it is working with State and Territory governments to ensure future population growth is well planned and well managed, such as looking to better integrate planning for infrastructure, housing, and services in cities and regions.
The Intergenerational Report is about what to expect in decades to come, so we’ll only see the benefits of the Government’s ideas — if they work — in the distant future. But you only need to look at the housing crisis and lack of healthcare workers to see the significant downside of not adequately planning for the future.
One issue raised in the report the Government could expedite its response on is the warning on migration levels. This is key if we are to find the workers needed to help care for the increased older population.
Treasurer Jim Chalmers has said in response to the report findings that the Government is “working hard to tackle skills shortages now”.
Not hard enough when looking at migration levels to address the issue if you ask WA Premier Roger Cook.
The Sunday Times reported the WA Government had been notified by the Commonwealth that our allocation for the State Nominated Migration Program was set to be drastically cut from more than 8000 places to just 2350 this financial year.
The SNMP allows States to specifically decide which overseas skilled workers they need to fill the local jobs in demand.
Mr Cook is rightly outraged by the news and has warned WA “desperately needs more skilled workers — not less”.
How else are we going to build new homes and fill much-needed positions in areas such as health and hospitality?
Instead of just thinking long-term when he releases the Intergenerational Report this week, Dr Chalmers needs to tell us what he’s doing today to ensure our critical issues, such as bringing in more workers, are front of mind. And he can start by answering Mr Cook’s plea on our migration intake.