Australia Eyes Skilled Migrants to Address Workforce Shortages

Australia Eyes Skilled Migrants to Address Workforce Shortages

A ready workforce of over 600,000 skilled professionals in Australia stands poised to tackle staffing challenges across various industries. Yet, a convoluted and costly system for recognising overseas qualifications is holding them back. The result? Many are working in roles below their skill level, costing the country billions in untapped economic activity.

Reforming this approach is now a focus, with unions, employer groups, and researchers pushing for significant changes. Could streamlining this system unlock the potential of skilled migrant workers and solve Australia’s burgeoning workforce crisis?

A Growing Skills Gap

Nearly 45% of permanent migrants in Australia—approximately 621,000 individuals—are employed in roles that do not match their qualifications, according to Deloitte research shared by the Activate Australia’s Skills coalition.

The data breakdown is telling:

  • Over 201,000 migrants are qualified in management and commerce.
  • More than 80,000 are engineers.
  • Around 50,000 are trained healthcare professionals.

Despite their advanced qualifications, these skilled workers often face barriers to employment within their fields. At the same time, numerous industries, including healthcare, construction, and technology, struggle to fill skilled positions.

Unions and employer bodies assert that what they describe as a “skills mismatch” could otherwise be addressed by better recognising overseas qualifications. Addressing this mismatch could add up to $9bn in economic value annually.

What Prevents Migrants from Working in Their Fields?

The Australian system for recognising overseas qualifications remains notoriously fractured. The process has been criticised as slow, expensive, and overly complex, leaving highly skilled migrants unable to contribute to their full capacities.

System Barriers

Denita Wawn, Chief Executive of the Master Builders Association, summarised the challenge succinctly, stating, “The skills recognition process is cumbersome, costly, slow and in some cases completely unnecessary.”

Migrants must often overcome the following obstacles:

  • Language Barriers – While most possess the technical knowledge required, navigating the process in English presents a significant hurdle.
  • Complex Systems – A maze of licensing authorities and regulatory bodies often leaves migrants unclear about requirements.
  • Excessive Costs – Strikingly, a 2023 review found that overseas-trained GPs had to wait 35 to 130 weeks to practise in the country, paying up to $51,000 in associated costs.

Adding to these challenges, there are no national subsidies or loan schemes to ease the financial burden for applicants, leaving many migrants to shoulder prohibitive upfront costs on their own.

Public & Industry Pressure for Reform

These system shortcomings have inspired a coalition comprising unions, employer groups, and organisations such as Settlement Services International. The coalition launched a campaign in October advocating for comprehensive reform.

Their key recommendation is the creation of a national governance body tasked with overseeing the recognition of skills and qualifications—a significant step toward simplifying and centralising the process.

Additional proposed measures include:

  • Means-Tested Financial Support – Reducing costs for applicants based on individual financial circumstances.
  • Localised Information Centres – Providing guidance in migrant-populated areas to ensure clarity in navigating existing systems.

The coalition’s efforts are supported by public sentiment. A January Essential poll involving 1,132 voters revealed that 61% of respondents favoured recognising overseas qualifications, provided appropriate safeguards were upheld. Many also agreed this would be a practical solution to address labour shortages in critical industries such as healthcare and skilled trades.

Violet Roumeliotis, CEO of Settlement Services International, highlighted the need for decisive action, stating, “Many governments have tinkered at the edges of [Australia’s] skills recognition process, when what is really needed is wholesale reform.”

Economic Benefits at Stake

The coalition estimates that the current gap between qualified migrants and unfilled skilled roles renders Australia $9bn poorer each year. By bridging this gap, Australia could not only address workforce shortages but also unlock substantial economic growth across the healthcare, construction, and engineering sectors.

Compounding the urgency is the global competition for skilled workers, as countries vie for talent to sustain their post-pandemic recoveries. Australia’s current inefficiencies risk deterring otherwise motivated talent, compromising its ability to remain competitive within global markets.

The Federal Government’s Response

Recent months have seen minor steps from the Labour government aimed at simplifying parts of the skills recognition process. Starting in March, registered nurses from six high-demand countries, including the UK and US, will be able to fast-track their applications—cutting wait times by up to 12 months.

Though welcome, these measures fall short of the systemic overhaul recommended by industry bodies. When contacted, the Skills Minister’s office stated that reforms are being explored in partnership with states, territories, unions, and industry leaders. However, no specifics were provided on creating a national body or introducing subsidies.

A Unique Opportunity for Change

Australia’s shortage of skilled workers is an urgent problem that requires swift, tangible solutions. However, with the upcoming election, this issue has also presented a powerful opportunity for bipartisan progress.

By reforming the qualifications recognition system, the government has the chance to unlock an untapped workforce, strengthen the economy, and position Australia as a hub for global talent. Yet, real change hinges on implementing long-term, centralised solutions rather than incremental adjustments.

Source

The Guardian


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