HIGH immigration levels are essential to bolstering WA's economic boom and fill skill shortages, according to a leading economic policy analyst.
The latest Deloitte Index showed the market capitalisation of its indexed WA companies grew by 2.5 per cent, or $3.6 billion in August. It closed at $152 billion.
Sustained growth in the WA market was supported by global commodity prices, despite a weakening in other major indices across the world, Deloitte WA managing partner Keith Jones said.
"This really is a remarkable performance in light of the lack of investor confidence that is plaguing the bank and financial markets," Mr Jones said.
The report shows WA's growth was predominantly lead by miners like Fortescue Metals Group, which enjoyed a market capitalisation of $1.1 billion and the increase of most major commodities.
Curtin University Professor of economic policy, Peter Kenyon, said the figures bode well for the future of the WA economy.
"What that tends to suggest is that people are gaining confidence about the future and therefore are investing in equity, and as a result that kind of reflects positive expectations about the future," Professor Kenyon said.
"WA is ideally placed and in good shape over the short term to do very well, because we are in the right place at the right time. China shows no sign of faltering and the US economy is bubbling along a bit."
While the figures were encouraging, Professor Kenyon said the long-term skills shortage problem would continue unless a targeted immigration program was implemented.
"If anything we need more people and not fewer and yet we've got this ridiculous debate about population," he said.
"We're not going to solve this problem in the short term by education and training, but the solution to the skills shortage in Australia has been through immigration and that will continue to be the case, so I wouldn't be surprised to see that continue."
He said past economic boom periods had coincided with high immigration, but that the two conditions bolstered each other.
"If we wish to have the benefits of the economic boom it is essential that we do have relatively high levels of immigration," he said.
