Canberra needs to attract and retain a larger core group of young people who begin their careers and put down roots in the city to enliven the city's cultural and social spheres, Chief Minister Andrew Barr has said.
Mr Barr said the capital lost a lot of people aged between 25 and 35, and the government would be working to keep people in Canberra after they completed their studies.
"If we can keep them in that intervening period, that's going to have the biggest economic impact and, I would argue, the biggest social and cultural impact," Mr Barr said.
"And it does address some environmental challenges because I think that generation is a little bit more attune to more sustainable living."
In a speech delivered to a Committee for Economic Development of Australia event this week, the Chief Minister said Canberra had been good at attracting young and skilled migrants at the university age, but needed to do more to retain them for longer periods.
Mr Barr was asked what ultimate population size Canberra was working towards, noting the finite space for greenfield development and the government's stated policy of increasing the residential density of existing urban areas.
"To a certain extent, cities are constantly evolving and there's no capacity at a state and territory level to say, right, we've reached whatever population target - magic number x - and that's it. No one else can come in. I mean, it doesn't work like that," he said.
Mr Barr said there were "supply side constraints" on Canberra's ability to grow, and years where the population had grown by around 2.5 per cent had put pressure on the government's systems and services.
Asked about businesses struggling to attract staff to Canberra amid a tight and unaffordable housing market, Mr Barr said the issue of housing cost was complex and not solely driven by a shortage of supply.
"It's also about the wages and salaries that businesses offer, the working conditions, how employees are valued and the lifestyle and I guess the inclusiveness of the city. They're all going to combine an answer to that question," he said.
"It's pretty clear if you are on a high income, housing affordability is not an issue in Canberra. The issue is if you're not on a high outcome."
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The ACT government on Tuesday launched a new set of economic development priorities for 2022 to 2025, which include a focus on work-life balance in Canberra to attract skilled workers to a liveable city.
"Canberra's reputation as an innovation and technology hub, and focus on liveability, inclusion and wellbeing will act as a drawcard for skilled talent internationally and the workforce of the future," the government's priorities document said.
The economic development priorities set three missions for the ACT government: giving Canberrans back more time in their work-life balance, pushing the city beyond net-zero emissions and fostering growth in the knowledge-based economy.
"We are also increasing our focus on better urban design and strengthening transport links, making it easier to live, work, grow and invest," the statement said.
Professor Richard Hu, an urban planning expert at the University of Canberra who has researched city migration, said educated young people would leave Canberra for different reasons.
"One is that we don't seem to provide the diversity of jobs, or the base of jobs to retain them here. I think the second reason is that the housing affordability is an issue for our city in terms of retaining those young people," Professor Hu said.
Professor Hu said those aged between 25 and 35 were highly mobile and were more likely to stay put once they were older and established a career and started a family.
"I think the government could engage more in a conversation between the universities and the business sector, you know, [to determine] exactly what is the market demand," he said.
"Then our universities provide the right courses and training, to provide the talent that is wanted in the market. There should be some dialogue between the supply side and the demand side of talents."
