For this question read the CEDA's report by chief economist Jarrod Ball, titled

"Australia's Future Migration System 2022", page 17. One of the recommendations is that the Federal

Government should "remove the need for labour-market testing across the skilled-visa system".

Critically analyse this recommendation in the context of Australian labour market by using AD-AS

The current requirements are highly prescriptive, applying a one-size-fits-all approach to a range of industries and occupations, including where there is consensus that there is a genuine skills shortage." Labour-market testing Labour-market testing requirements have been abandoned and subsequently reintroduced over the history of the skilled-migration system. In a demand-driven system with a regularly reviewed and curated skilled-occupation list and income threshold, it is superfluous and ineffective. The OECD has previously cast doubt on the reliability of testing conducted by employers." Further, the Azarias Review suggested "it would be far more reassuring for the public if there existed a transparent, responsive and evidence-based approach to determining skilled occupations eligible for the 457 program".?" In line with that review's findings, there is a strong case to remove the need for testing. The current requirements are highly prescriptive, applying a one-size-fits-all approach to a range of industries and occupations, including where there is consensus that there is a genuine skills shortage. Other interim changes could include requiring labour- market testing within six months of a visa nomination, rather than the current four months, Current arrangements can lead to businesses advertising multiple times to meet this requirement, as timeframes for the TSS nomination process extend or mistakes are made due to inflexible advertising requirements.22 Recommendations 2. Modernise the temporary-skill-shortage (TSS) visa by: Raising the TSMIT to $66,000, where it would be today if it had been indexed to average wages. Index it annually to average weekly ordinary-time earnings (AWOTE); Consolidate the current skilled-occupation lists down to one that is as expansive as possible with a consistent pathway to permanent residency; Take pragmatic steps now to make the codes in the list more workable, including: Greater inclusion of "not elsewhere classified" (NEC) occupations, to incorporate emerging occupations into current classifications. Utilising four-digit ANZSCO level codes to provide greater flexibility; and Remove the need for labour-market testing across the skilled-visa system. 17 AUSTRALIA'S FUTURE MIGRATION SYSTEM