Report: International Students Key to Australia’s Future Skills

International Students: Key to Australia’s Workforce

A recent report from Jobs and Skills Australia (JSA) underscores the vital role of international students in shaping the country’s workforce. However, it stresses the need for better alignment between visa, education, and employment systems to fully unlock their potential.

Insights from the International Students Pathways and Outcomes Study

Commissioned by the Australian Government in late 2023, the International Students Pathways and Outcomes Study explores the journey of international students from 2010 to 2023. The study highlights their economic contributions while also pinpointing barriers that hinder their transition into skilled employment.

Key Findings

• Narrow Pathways to Permanent Residency: Limited options exist for graduates seeking permanent residency, many of whom rely on temporary visas.
• VET Graduates Perform Well: International Vocational Education and Training (VET) students are often well-prepared for jobs, particularly in hospitality and construction.
• Mismatch of Education and Employment: Many higher education graduates find themselves in roles unrelated to their qualifications, underutilising their skills.
• Influenced Choices: Visa settings and migration points tests lead students to choose courses based on residency prospects rather than their interests or market needs.
• Ongoing Skills Shortages: Despite the number of international graduates, only a handful of occupations—like nursing and cooking—offer clear paths into employment.

Professor Barney Glover AO, the JSA Commissioner, notes that these findings provide valuable insights into better linking international education with migration and skill systems to support students and address workforce demands.

Phil Honeywood, CEO of the International Education Association of Australia, emphasises the need to align student interests with industry requirements. Most students eventually return home after their studies, which may leave a skills gap in both Australia and their home countries.

Recommendations for Improvement

The report presents 11 recommendations aimed at improving education, migration, and labour market policies:

1. Set Shared Goals: Establish objectives that acknowledge the economic impact of the international education sector in building a skilled workforce.
2. Public Performance Data: Provide data on graduate labour market outcomes to policymakers, regulators, students, and employers.
3. Review Study-to-Work Pathways: Align visa pathways for international VET graduates with national skills shortages.
4. Support Employment Transitions: Enhance English language support, cultural acclimatisation, and recognition of qualifications.
5. Expand Learning Opportunities: Increase work-integrated learning options, particularly structured placements.
6. Monitor Integrity Measures: Evaluate the impact of new measures from 2024 on economic outcomes.
7. Further Research: Conduct qualitative studies with international students to better understand their study and work choices.
8. Boost Employer Engagement: Encourage employers to hire international graduates in skills shortage areas.
9. Ensure VET Quality: Strengthen assurance measures to maintain confidence in qualifications.
10. Standardise Tracking of Returnees: Develop measures to track the return of international students after their studies.
11. Reform the Migration Points Test: Adjust the test to better identify graduates who can contribute to Australia’s workforce.

The study highlights that international students are crucial not only as fee-payers but as future contributors to Australia’s economy. Without changes to visa regulations, education, and employment sectors, the country risks missing out on their full potential.

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