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Australia may be shutting tighter its door to economic asylum seekers, but the country should open its door wider to skilled migrant workers for it to improve the national economy.

The Australian Industry Group (AIG), a vocal business lobby that always airs its views on major national issues, suggested increasing the annual quota by 15 per cent for the next financial year.

That would mean Australia must allow 220,000 skilled foreign workers in 2014-15 from the current limit of 190,000.

Innes Willox, chief executive of AIG, cited the report by the Australian Workplace Productivity Agency that said Australia would need 2.8 million more people with specific skills set over the next 10 years to fill the gap caused by the relatively slow growth rate of its population by the natural method and more Aussies becoming seniors.

Over 9 per cent of all Australian workers are now aged 60 or older and 17 per cent are from 55 to 59, while the country continues to suffer from persistent skill shortages in some key sectors such as mining, engineering, infrastructure and health.

"The proposed increase takes into account the proven benefits to the economy of a strong migration programme. An increase in migrant numbers supports positive growth in our population and especially in our adult workforce, which is important due to relatively low rates of natural population growth," ABC quoted Mr Willox.

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