Calls for state migration policy

WESTERN Australian businesses and recruiters have expressed concerns over possible cuts to Australia's migration intake, calling for a state-based approach to immigration quotas.

The federal opposition last week asked Immigration Minister Chris Evans to cut the number of migrants by 25 per cent, only a few months after the government announced it would lift immigration numbers to a record 190,000 in 2008-09.

The debate over migration quotas coincided with a WA Business News forum on skilled migration, which heard that business in WA still needs extra labour.

Interstaff Recruitement executive director Daniel Engles said that states like WA or Queensland are becoming exceptions to the national unemployment trends and may end up being overlooked in the policy making process.

"The issue that they [the government] have now is pockets of skills shortage," Mr Engles told the forum.

"There is a regionalisation issue and WA is going to find it difficult to run an argument that they still need access to world labour force in the face of significant prospect of economic slowdown in other states," he said.

Research released in the past week showed that the country's jobs market was in for a rocky ride over the next two years, with one economist predicting the unemployment rate would rise as high as 11 per cent.

But others had a less negative view.

JPMorgan chief economist Stephen Walters said he expected the jobless rate to jump to 9 per cent by 2010, while Commonwealth Bank chief economist Michael Blythe has predicted that the jobless rate was likely to peak at 5.5 per cent by late 2009.

Chamber of Commerce and Industry of WA chief executive James Pearson said a state-based approach to immigration quotas could be on the cards.

"Having spoken to the locally-based representatives, my understanding is that there is a move towards more state-based approaches to the immigration quotas for permanent and temporary [migrants]," Mr Pearson said.

"There is an understanding that we need to be more discriminating about where workers are needed in this country," he said.

"I would be looking to encourage the relevant organisations at the state level, the SBDC [Small Business Development Corporation], the state governments and chambers to be working with business communities to understand what the needs are and encouraging the federal government what WA needs and what WA businesses need and not be overly influenced by what's happening on the eastern seaboard."

WA's unemployment rate currently sits at 3 per cent, lower than the national rate of 4.3 per cent.

The number of 457 visas granted during the past year is up 41 per cent on the previous year to 11,800, another reflection that the lack of locally sourced workers is still a major issue for WA businesses.

Ultimateskills Global chief executive George Gelavis told the forum that his clients in WA and QLD were still experiencing high demand for skilled labour, despite the global financial crisis.

"I can absolutely categorically tell you that our customers are ploughing along as if nothing had happened. The shortages they have are so severe that any change at a macro level is not coming into their thinking at a local supply of labour level."

Attendees of the forum agreed that the immigration problem should be looked after by the Minister for Employment and Workplace Relations, Julia Gillard.

"I would like the government and maybe Julia Gillard to have a look at the protection of the Australian labour market and pick that issue apart," Mr Engles said.

"We have to look at the benefits that we get from skilled international workers coming in.

"Some paid for all the education and training, they're job ready and willing to do it at $60,000 a year compared to the ridiculous labour rates that we're getting at the moment," he said.