New research from the Committee for Economic Development of Australia (CEDA) shows temporary migration has played a central role in Australia’s record 28 years of economic growth.

The organisation’s new report found immigration to Australia has not harmed jobs and earnings of local workers.

Some of the key findings from CEDA’s economic modelling included:

• Temporary skilled visa holders of working age make up less than 1% of Australia’s workforce.
• 96% of temporary skilled migrants are under the age of 50.
• 70% of temporary skilled visa holders reside in NSW and VIC – states which currently have the lowest unemployment rates in the country.
• Temporary skilled migrants tend to be employed in higher paying jobs – the average base salary for nominated positions was $95k in 2017-18.
• Temporary skilled migrants are excluded from free or subsidised government services but still contribute to tax revenues, resulting in a net benefit to government budgets.

“There are currently around two million people in Australia on temporary visas including students, working holiday makers, skilled workers and New Zealand citizens. This is a significant number that should be well understood, transparently managed and appropriately factored into community planning,” CEDA CEO Melinda Cilento said.

“CEDA’s report has found that migration to Australia in recent decades has been positive for the labour market, and the outcomes from temporary skilled migration were particularly positive.”

The analysis shows that temporary skilled migration is critical in delivering benefits to business, the economy more broadly and to the existing workforce.

“However, concerns about the impacts of temporary skilled migration have been raised consistently resulting in frequent changes to the scheme, including most recently the abolition of the 457 visa class,” Ms Cilento said.

“Our research has found that key concerns around temporary skilled migration, such as impacts on local workers as a result of visas such as the 482 and its predecessor the 457, are unfounded.

“The average base salary for a skilled temporary visa holder is quite high at $95,000, meaning these workers are unlikely to undercut local employment terms and conditions.

“In addition, they are a small group, with temporary skilled migrants of working age accounting for less than one per cent of Australia’s labour force.”

Ms Cilento cited instances of unpredictable change to this visa category has come at the cost of undermining the ability of business to undertake workforce planning with certainty.

“At a time when more businesses are finding it difficult to source the skills they need, strengthening and providing greater transparency and certainty around temporary skilled migration would support business investment and productivity,” she continued.

“Temporary migrants also contribute to the economy by paying taxes and spending in the communities in which they live, increasing demand for goods and services and supporting local economic activity and jobs.”

Ms Cilento said there are actions that can be taken immediately to improve the system and make it easier for businesses to get the skills they need now and in the future:

• Increasing transparency of data and methods used in determining professions for the skilled occupation list;
• Ensuring occupation codes used to assess skill shortages align with evolving labour trends to ensure temporary skilled migration is responsive to emerging skill needs;
• Introducing a dedicated path for intra-company transfer of employees to Australia; and
• Better aligning the Skilling Australia Fund Levy to alleviate the skill shortages driving the need for skilled migration.

“If CEDA’s recommendations are implemented, the system will be more responsive to the needs of the economy. It will also reduce reliance on low quality instruments like labour market testing to ensure that genuine skills shortages are being filled,” Ms Cilento said.

The report also highlighted Australia will continue to need temporary skilled migration to fill periodic and emerging skill shortages.

AREEA continues push for high priority occupations

CEDA’s report has been released only months after the Senate Committee on Legal and Constitutional Affairs References released its Report into the effectiveness of the temporary skilled visa system in targeting genuine skills shortages, presenting the federal government with 21 recommendations for change.

It built on the Morrison Government’s announcement it would adopt all 22 recommendations of the Migrant Workers’ Taskforce Report, including criminalisation of serious worker exploitation and establishing a National Labour Hire Registration Scheme.

As AREEA has previously advocated directly to government, the committee heard that the removal of specialist maritime roles from the occupation lists in 2017 is likely to lead to a void of specialist mariners with the necessary skills and experience to fill key roles in Australian Ports and other maritime sectors.

AREEA continues to provide further information and evidence in relation to the remaining occupations ineligible for skilled migration under either list as part of industry consultation.

The occupations identified as high priority by AREEA members, in particular drilling and maritime industry roles, continue to be the focus of attention.

Unfortunately, the most recent update to the occupation lists shows none of the occupations identified by members as of concern to the resources and energy sector have been flagged for change. This will a continued focus area for AREEA during 2019.

For more information on skilled migration and/or to provide feedback on high priority occupations, please contact [email protected]