Tasmania this year exceeded the first benchmark of the state government's population growth strategy by almost 10,000 people, despite movement restrictions caused by the coronavirus pandemic.
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The state government in 2015 set a target to grow the population to 650,000 people by 2050 in order to drive economic growth, create jobs, and improve the standard of living.
Within the strategy, there was an ambition to have 530,000 people living in Tasmania by 2020.
As of September, the state's population was 539,590.
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Over the year, more people moved to the state rather than left and births outpaced deaths.
Despite these positive signs, basic growth in numbers is not enough for the population strategy's goal of an improved economy and liveability.
Tasmania has the oldest population in the country and its population is ageing faster than any other Australian jurisdiction.
Projections indicate more than one in four Tasmanians will be aged 65 or older by 2050.
Northern Tasmania Development Corporation chief executive Mark Baker said working age population growth was vital for productivity as the state grew older.
"We know there is a demographic time bomb and that's why it is so important to identify the skills and industries needed for our future," he said.
Mr Baker said while the forecast one million fewer people in Australia as a result of the COVID-19 pandemic was a challenge, there were also opportunities provided by the crisis for interstate migration.
"Australians have adjusted to working from home and many now have a proof of concept that they can do their jobs or manage their businesses remotely," he said. "Employers who might have previously been reluctant to allow remote work have seen productivity maintained or even increased due to WFH arrangements."
Mr Baker said Northern Tasmania in particular had particular enticements for people looking to relocate from interstate and international places, such as fast NBN connection, affordable housing and access to essential services.
"Now is the time to go direct to individuals and businesses on mainland Australia about relocating and Northern Tasmania has a competitive story to tell," he said.
We know there is a demographic time bomb and that's why it is so important to identify the skills and industries needed for our future.
- Northern Tasmania Development Corporation chief executive Mark Baker
As for the North-West, Cradle Coast Authority chief executive Daryl Connelly said the region needed to attract more people to the region to fill thousands of jobs to come online in the health, aged care and renewable energy sectors.
"Right now, there are lots of vacancies that employers are struggling to fill, and Cradle Coast Authority is playing a role through our free jobs board and through our survey of ex-pat Tasmanians which seeks to understand what would tempt people to return," he said.
"Diversity is a good thing, and I'm keen to welcome people from anywhere, be that other parts of Tasmania, the mainland or overseas.
"The Cradle Coast region has an enviable lifestyle, and now that remote working has been normalised by COVID-19, I think a lot more working aged people will be looking to move here."
Historically, Tasmania's population growth has been driven by migration from interstate and overseas.
Migrant Resource Centre Northern Tasmania chief executive Ella Dixon said she predicted there won't be much movement in international migration to the state for at least another year.
"COVID-19 has transformed population politics," she said. "In Tasmania, there is a pool of motivated workers willing to take up any work or labour around skills shortages though we know some people need a bit more help getting their first job in Australia."
Ms Dixon said there was an opportunity now to start building the state's new generation of people while migration was slow, particularly in education in preparation for an economic upturn.
"We've got a window of 10 or 15 years to promote interest in the areas of liberal arts and technical skills so the next generation of workers will be innovative and able to solve modern problems which will follow COVID," she said.
A paper released by the University of Tasmania's Institute for the Study of Social Change last year stated the number of people living in Tasmania would start to decline by mid-century,
The paper by Lisa Denny and Nyree Pisanu suggested immigration from interstate and overseas had driven an overall increase in the state's population, but this had favoured the major cities.
"More than half of the state's 29 local government areas are already losing population and decline is projected for most of the remaining areas over the next 25 years," the paper read.
The authors said a failure to plan for the anticipated demographic shift poses serious long-term risks.
Regional Development Australia state chief executive Craig Perkins said that the 2020 benchmark for the state's population strategy was exceeded showed people had clearly found Tasmania.
"And people of the right working age had found Tasmania," he said.
"I think coming out of COVID, more people will want to move to the regions of Australia and particularly Tasmania is an obvious place.
"The challenges will be around infrastructure, planning and investment as the population continues to grow."