Australia is to cut its intake of migrants for the first time in a decade amid concern over the global economic downturn.
Immigration Minister Chris Evans said the intake of skilled migrants would be reduced by about 14%.
Bricklayers, plumbers, welders and carpenters are among the occupations no longer required.
Record recent migrant arrivals in a fast shrinking job market were leading to ‘highly combustible’ conditions in regional areas, where many new arrivals had settled, according to leading migration expert, former government official Bob Kinnaird.
The country moved a step closer to recession this month with the first contraction in eight years and the economy shrinking by 0.5%.
Australia's jobless rate spiked to 5.2% from 4.8% last month with the biggest impact felt by full-time workers. Some economists fear unemployment levels could go as high as 10%.
Mr Evans said the immigration intake next year would be cut to 115,000, from 133,500 in 2008-09.
