"No matter its size from year to year, the focus of a future migration program must be on retaining a high level of skilled migration to bring knowledge, expertise and dynamism to our economy," Innes Willox, chief executive of the national employee association Ai Group said today.

"The last area to cut in the overall program is the absolute number of skilled migrants welcomed to Australia. Currently seven out of 10 permanent migrants who are accepted are here because of the skills they bring. If we have to increase that percentage in a cut down program so be it.

"If we are to compete in a rapidly changing and increasingly volatile global economy we must have the people who can best help us win – both home grown and imported. We are already suffering from massive labour and skills shortages which is putting real pressure on areas such as construction , manufacturing and the care economy.

"To cut the skilled component of the migration program would be a momentous act of economic self harm. If governments want to cut the migration program for whatever reason, they should look elsewhere beyond the skilled pathway," Mr Willox said.

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