Australia’s calling for skilled workers, not Uber drivers!

Australia’s Skills Crisis: What You Need to Know

Earlier this year, Matt Bell from The Australian Newspaper highlighted concerning news about Australia’s job market. Based on the Hays 2025 Skills Report, he pointed out that businesses are struggling to find skilled workers. This situation has raised questions about the effectiveness of Australia’s migration system.

Job Applications vs. Qualified Workers

Despite these concerns, data from Jobs and Skills Australia (JSA) reveals a different story. For every job vacancy, there were 29.3 applications, which includes about 9.4 qualified applicants per job. However, only 4 of those applicants were deemed suitable. This suggests that while many are looking for work, the issues may not lie solely in the number of applicants.

High Demand for Skilled Workers

It’s interesting to note that while Australia has a surplus of low-skilled workers, there is a notable shortage of high-skilled talent. Alex Joiner, chief economist from IFM Investors, illustrated that a significant portion of net overseas migration has comprised unskilled workers. This raises important questions for international job seekers and those wanting to migrate.

Changes in Visa Regulations

The Australian government has taken steps to address these issues. Recently, they announced an increase in the planning level for international students by 25,000, totalling 295,000 for 2026. Also, some English-language requirements for visas have been relaxed. These changes make it easier for international students and temporary visa holders to enter the country, but they also mean that many may struggle to find jobs that match their qualifications.

The Underemployment Challenge

According to a report from the Committee for Economic Development of Australia (CEDA), many skilled migrants are underemployed or earning less than their Australian-born counterparts. Senior Economist Andrew Barker points out that migrants often work in roles that do not match their skill level, despite being picked for their experience and qualifications. This mismatch can be frustrating for those who have invested time and money in their education and training.

Evidence of Underutilisation

Research from Deloitte Access Economics indicates that 44% of permanent migrants in Australia worked in jobs below their skill level. This statistic shows that many skilled migrants are not being utilised effectively, which could impact both their careers and Australia’s productivity growth.

Employment Outcomes for Graduates

The federal government’s 2023 Migration Review found that 51% of foreign-born university graduates with bachelor’s degrees ended up in unskilled work just three years after graduation. This situation is reflective of the broader challenges within the migration system, where many incoming professionals may struggle to find openings in their fields.

Recommendations for a Stronger Migration System

Many experts believe that a streamlined and more focused approach to migration is needed. Ideally, Australia could benefit from:

• A migration system that prioritises higher-skilled and higher-income migrants.
• Setting a wage floor significantly above the current median salary of around $90,000 for skilled visas.
• Ensuring that all skilled visas are employer-sponsored, encouraging migrants to work in their areas of expertise right away.

It’s also advised to tighten standards for temporary visas and focus on top-performing international students for graduate visas.

Concerns About Current Trends

The Albanese government’s recent decisions to increase student intakes and relax English-language requirements raise concerns about the overall quality of Australia’s migration system. Experts worry that this approach may not address the skills shortages and could further impact productivity and living standards.

Wrapping Up

For international job seekers looking at opportunities in Australia, it’s essential to stay informed about these developments. Understanding the current landscape can help you make better decisions as you navigate your journey towards visa sponsorship or permanent residency.

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