The federal government will slash the skilled migration program by 14 per cent, or 18,500 jobs, over the next three years.

The cuts will be coupled with deletions to the critical skills list, which specifies which jobs are open to migrants.

All building and manufacturing trades will be removed, forcing companies to find bricklayers, plumbers, welders and carpenters domestically.

Employers can bring in foreign workers only if they cannot source the labour locally.

Mr Evans says the government wants to ensure migrant workers are not competing with Australians for jobs during the economic downturn.