Migration reform should be priority of upcoming job summit

But if Treasurer Jim Chalmers can achieve consensus among employers, unions and industry about what responses are needed to overcome existing economic challenges, then major reforms could be on the horizon.

The government's summit will seek to discuss how Australia can fix ongoing issues around labour shortages, boosting wages and what skills are needed for emerging industries.

A large focus will also examine gender pay inequality and opportunities within the transition to a decarbonised economy.

But the biggest and most immediate relief for a number of employers across the country would be changes to Australia's complex migration system.

While there is no dispute border closures were necessary to contain the spread of COVID-19, a vacuum in skilled migration has been left and is constraining businesses across nearly every sector of the economy.

Whether its hospitality, professional services or health, all sectors have flagged major job shortages and claim there just aren't enough workers around.

Job vacancy data from May showed nationally the rate of job adverts put out by businesses went up 14 per cent compared to the prior quarter. That translates to around half a million job vacancies across the country.

Labour figures also painted a similar picture, with the number of vacant jobs outpacing the number of unemployed people within the workforce.

Upskilling Australians to meet the demand is part of the solution, but education for some specialised roles can take years. This leaves skilled migrants as the only avenue to fulfil shortages in the short-term.

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Australian National University demographer Liz Allen told ACM earlier in the week that Australia's domestic labour supply will never fit the demand for the economy, and often the debate centres around migrants taking away local jobs.

She also believes the politics of the pandemic tarnished brand Australia as an ideal place to work.

There is some evidence of this. Overseas workers weren't willing to wait for Australia to reopen to the world and instead went to countries like Canada and the United Kingdom.

Australian Chamber of Commerce and Industry chief executive Andrew McKellar also believed the country lost its competitive edge to attract workers from the global pool due to a slower reopening comparative to other countries.

But migration is often used as a political football and, mix it in with a jobs summit already labelled by the opposition as grandstanding, it could be a recipe for disaster.

The Liberals have rejected a seat at the table and highlight a lack of bipartisanship on addressing the issues facing the economy and labour market. The opposition also has beef with a flat out rejection of its proposal to allow older Australians and veterans to return to the workforce without their pension being penalised.

What this fails to grasp is if half a million veterans and pensioners are willing to re-enter the workforce to meet the demand, nor if older workers have the necessary skill set for emerging industries which hold the demand - think artificial intelligence, data analytics and renewable energy.

Migration has been tabled as an issue at the summit and eyes will be on the bubble of power descending on Canberra next week as to whether any solution will be brought forward or if new political battle lines for the 47^th Parliament are drawn.