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Australia's Underpopulation Challenges and Insights

May 20, 2025

Population and Settlement: Population Dynamics

Case Study: An Under-populated Country - Australia

Background Information

  • Land Mass: Australia's land mass is vast, classified as one of the seven continents.
  • Size Comparison: Nearly as large as the USA.
  • Population: 26 million, less than Malaysia.
  • Population Density: One of the most sparsely populated countries with 3 people per square kilometer.
  • Population Distribution: Most people live near the coast, 80% in the southeast region.
  • Urbanization: 90% live on just 0.22% of the land area, making it highly urbanized.

Reasons for Underpopulation

  • Natural Resources:
    • Rich in coal, gold, natural gas, metal ores, and uranium.
    • Surplus resources are exported.
    • 2017 exports valued over US$200 billion.
    • GDP per capita nearly US$50,000.
  • Immigration Policy:
    • Encourages immigration to develop resources and address shortages in skilled professions (e.g., nurses, engineers).
    • Encourages settlement in remote rural areas to combat out-migration.

Problems Due to Underpopulation

  • Worker Shortage:
    • Low fertility rates and an aging population lead to a predicted shortfall of 2.3 million workers by 2030.
  • Higher Taxes:
    • Over 40% of the workforce expected to retire in the next 20 years.
    • Possible tax increases for existing workers, potentially leading to emigration.
  • Rising Conflicts:
    • Labour shortages make Australia attractive to immigrants.
    • Tensions arise in major cities over cultural threats.
  • Closure of Public Services:
    • Schools, hospitals, and transport links may close due to insufficient population support.