An increase in the number of skilled migrants entering the country will help to boost both the quality of as skill levels within enterprises increases, as well as the of labour (increasing the size of the labour force), which increases the ability of businesses to produce output. In addition, businesses will be able to source skilled labour at lower of pay because the increased of labour exerts downward pressure on or labour costs. The combined effect of greater productivity and relatively lower labour costs helps to reduce the costs of production for Australian businesses and increases the willingness and to supply goods and services to markets, This rise in productive capacity, and the associated fall in production costs, contributes to a lower rate of , boosting international , stimulating economic growth and therefore assisting with economic recovery.