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# Theme 1 : Population and settlement Topic 1.1: Population dynamics
# Case Study Sheet An under-populated country - Australia
Background information
Australias land mass is so large that it is actually classified as
one of the seven continents. It is nearly as big as the USA but
only has a population of 26 million (less than Malaysia)
making it one of the most sparsely populated countries in
the world, with a population density of only 3 people per
square kilometre.
Australias vast interior desert means the majority of the
population live near the coast, with 80% living in the south-
east region. It is one of the most urbanised countries in the
world; with 90% of the population living on just 0.22% of the
total land area, this is one of the reasons why it is considered
to be underpopulated.
Wh at are the other reasons why Australia considered to be underpopulated?
Australia is rich in natural resources; it contains large reserves of coal, gold, natural gas, metal ores and
uranium. There are more resources available than the country requires, meaning that the surplus resources
can be exported. In 2017 Australias exports were worth over US$200 billion, with a GDP per capita of nearly
US$50,000. With a low unemployment rate, the country has one of the highest standards of living in the world.
Although Australias immigration policy has changed over the years, the country has generally encouraged
immigration to develop the countrys resources and to solve shortages of certain skilled professions such as
nurses, engineers, electricians and nursery school teachers. They are particularly keen for migrants to settle in
the more remote rural areas, which have suffered from out-migration for a number of decades.
What problems does Australia face as a result of being underpopulated?
Shortage of workers: Due to low fertility rates and an ageing population, it is predicted that the country will
have a shortfall of 2.3 million workers by 2030.
Higher taxes: Over 40% of the current workforce is due to retire in the next 20 years, meaning taxes may need
to be raised for existing workers. Higher tax rates may cause more Australians to consider emigrating.
Rising conflicts: With Australias labour shortage, it is likely to be more attractive to foreign immigrants. This is
already causing some tensions with locals in the major cities, who feel that their culture may be under threat.
Closure of public services: Schools, hospitals and public transport links may close because there are not enough
people to support them.