Cormann Counters Populist Pop‑Ups: Migration Caps Won’t Ease Cost of Living, May Hurt Jobs

Mathias Cormann, former Australian finance minister and ex‑head of the OECD, warned that adopting populist migration caps would not ease the cost‑of‑living crisis and could even backfire on productivity.

Citing research that shows new migrants lift employment rates in the nation’s major cities, Cormann argued the economics are simple: people arrive, they work, they spend, and the economy benefits.

He cautioned that slogans about “letting the country’s own people” ignore the reality that a smaller labour pool can push wages up and leave price pressures untouched.

The warning comes alongside a fresh OECD report highlighting Australia’s growth reliance on a flexible, open labour market – a point the populist agenda has repeatedly tried to sideline.

In short, Cormann’s message to policymakers is clear: if the goal is to make everyday goods cheaper, the answer isn’t fewer arrivals but a more open and productive workforce.