"The slowing in population growth will see the labour force decelerate from an average rate of growth of 2.2% in 2010 to 1.6% in 2011. This translates to 107,000 fewer net additions to the labour force in 2011. In isolation, this will shave 0.8ppts off the national unemployment rate by the end of 2011, and a further 0.2ppts by the end of 2012. Skilled labour constraints will further restrict the building industry’s ability to manage demands from the mining investment boom, Queensland flood reconstruction activity and existing national housing and infrastructure shortages. An ageing population will also place increasing strains on government finances as health costs and aged dependency ratios rise sharply. Increased net overseas migration remains one of the few realistic short-term options to alleviate these tensions."
