Australia’s Skills Shortages Disappear

Understanding Australia’s Job Market and Migration Trends

If you’re considering moving to Australia or New Zealand, it’s essential to grasp the current job market and migration landscape. Recent data from Jobs and Skills Australia (JSA) has shed light on the number of applicants per job and the overall recruitment difficulties faced by employers.

A Closer Look at Job Applications

JSA’s analysis shows a significant number of applicants for each job vacancy in Australia. Currently, there are 29.3 applications per vacancy. This breaks down to 9.4 qualified applicants for every role, and 4 suitable candidates, indicating a high level of competition. While some have raised concerns about labour shortages, these numbers suggest that the problem may not be as severe as previously thought.

Recruitment Challenges

Interestingly, recruitment difficulties have returned to levels we saw before the pandemic. The data indicates that the number of jobs left unfilled for more than a month has sharply decreased. While Australia is well-equipped with lower-skilled workers, there’s a notable shortage of higher-skilled professionals in the labour market.

The Migration System in Australia

Australia’s current migration system is notably focusing on low-skilled workers. Many migrants entering through the system are not necessarily filling high-skilled roles, which poses challenges for the economy. This influx contributes to the overall applicant pool, but it doesn’t necessarily address the skills shortages in more technical fields.

For international job seekers, this means that while there may be numerous job openings, positions requiring high-level skills could be harder to secure. If you’re looking to migrate, understanding the visa options becomes crucial.

Visa Options and Skilled Migration

If you’re eyeing permanent residency (PR) in Australia, there are various visa pathways worth exploring:

• 482 Visa: This Temporary Skill Shortage visa allows employers to address labour shortages by bringing in skilled workers from overseas.
• 189 Visa: A points-tested visa for skilled workers who are not sponsored by an employer, state, or territory.
• 190 Visa: Similar to the 189 Visa but requires nomination by a state or territory government.
• 491 Visa: A skilled work regional (provisional) visa, which is intended for skilled workers to live and work in regional Australia.

These visas are crucial for those with in-demand skills. Keep in mind that the demand for skilled migrants is still strong, particularly in fields like engineering and IT.

International Students and Work Opportunities

The Albanese government recently raised the planning level for international students, effectively increasing the cap for 2026 to 295,000. This change means more international students can now study—and later work—in Australia. Additionally, there have been adjustments to the English-language requirements, potentially opening doors for a wider range of applicants.

However, there’s a growing narrative that many international students and migrants are finding themselves in underemployment. According to recent studies, a substantial number of skilled migrants and international graduates work in roles that don’t match their qualifications. For instance, reports have shown that 43% of skilled migrants entering through state-sponsored visas are not employed in their claimed occupations. This misalignment can affect your job search and overall satisfaction in Australia.

Insights & Challenges

It’s important to recognise that despite the high number of job applicants, the quality of jobs available may not align with the skills many migrants bring. A 2023 Migration Review found that more than 50% of foreign-born university graduates with bachelor’s degrees were working in unskilled positions three years after graduation. This gap highlights the mismatch between what migrants can offer and the roles they secure.

As you navigate your job search, be prepared for this reality. It’s crucial to stay informed about the industries that are thriving and where your skills are in demand.

What do you think?

Have a question about this topic or your own plans to move to Australia or New Zealand? Scroll down and leave a comment. We’d love to hear from you.

Thinking about moving to Australia?

Join our free and supportive community at Oz Visa Forum.
Post in our forums to get advice and support from people who’ve already made the move.

Not sure where to start? Click here to get started