Australia’s skilled migration intake will be slashed for the second time in the past two months.

Next week’s federal budget will cut the general skilled migration intake for the next financial year by about 7,000 people to 108,000, Fairfax reports.

The government’s move follows a decision taken in March to shed 18,500 places.

The total reduction of 25,000 places will constitute a 20 per cent cut to the program.

The cuts are the deepest since the previous recession, Fairfax reports.

The move is expected to go ahead despite figures released this week which show the unemployment rate fell from 5.7 per cent to 5.4 per cent, or 27,000 jobs, last month.