The Australian Labour Market for Migrants report (Report) is prepared by Jobs and Skills Australia each year. The Report offers insights into the Australian labour market and is for those that may engage with the immigration system to gain a better understanding of the current employment trends and economic conditions in Australia.

 

RSG has written this publication to summarise the Report and to give our readers some indications on what the past 12 months have looked like in terms of employment in Australia.

 

GENERAL EMPLOYMENT AND UNEMPLOYMENT

 

Diverging Employment Trends

From May 2023 to May 2024, there has been a significant shift in employment patterns across Australian industries. Health Care and Social Assistance led the way with an increase of 116,700 jobs, followed by Education and Training, and Construction, which also saw substantial growth. Meanwhile, Mining, Retail Trade, and Financial and Insurance Services experienced job losses, with the latter shedding 21,500 jobs. The fastest-growing sectors, such as Electricity, Gas, Water and Waste Services, and Arts and Recreation, reflect a growing demand for infrastructure and cultural services.

 

Changes in employment by industry are shown in Figure 1:

 

 

Regional Disparities in Occupation Distribution

The latest data underscores the growing disparity in occupation distribution across Australian states and territories. The Australian Capital Territory (ACT) continues to dominate with the highest proportion of workers in high-skill occupations, now at 61.2%, while states like Victoria (VIC) and New South Wales (NSW) follow but with less growth momentum. The declines in NSW and Queensland (QLD), albeit slight, raise concerns about these states’ ability to keep up with the demand for skilled labour. The notable increase in the ACT and gains in Western Australia (WA) and Tasmania (TAS) indicate that certain regions are better positioned to attract high-skill workers, potentially leading to greater economic disparities across the Country.

 

Figure 2 shows occupation by state/territory:

 

 

Rising Unemployment Concerns

The rise in Australia’s unemployment rate to 4.0% in May 2024 is a worrying trend, particularly as it marks an increase from 3.6% a year earlier. While some states like South Australia (SA), TAS, and the Northern Territory (NT) saw marginal improvements or stability in their unemployment rates, major states like NSW, VIC, and QLD faced increases. VIC, with the highest unemployment rate at 4.3%, highlights the uneven economic recovery across the nation. This trend could indicate deeper structural issues within these regional economies, such as insufficient job creation in emerging sectors or a mismatch between available jobs and the skills of the workforce.

 

Impact

The findings of the Report show Australia is undergoing an economic transformation, the uneven distribution of job growth and rising unemployment in certain regions. To ensure a balanced and sustainable economic future, targeted interventions are required to support sectors in decline, reskill workers, and create opportunities across all regions.

 

MIGRANT EMPLOYMENT AND UNEMPLOYMENT

 

Migrant Employment

A diverse range of employment opportunities characterises the Australian labour market for migrants. Australian-born individuals make up the majority of employed people. The Division extremes are as follows:

  • TAS: 82.5% – Highest
  • WA Australia: 58.8% – Lowest

The highest proportion of employed people born in other than main English-speaking countries (OTMESC) is found in VIC, NSW, and the ACT.

 

While the proportion of employed people born in main English-speaking countries (MESC) is the highest in WA and lowest in the ACT.

 

Migrant Unemployment

Migrant unemployment rates vary based on factors such as skill level, age, English language proficiency, and recent work experience.

 

Recently arrived migrants have a higher unemployment rate on average than those who have lived in Australia for some years.

 

The MESC-born persons who arrived in Australia in the past decade have the highest labour force participation rate. While the OTMESC-born persons who arrived 20 or more years ago have the lowest Labour Force Participation Rate.

 

Unemployment rates for people resident in Australia by their major birth country groups vary significantly. MESC-born persons and OTMESC-born persons who arrived in the recent 5 years have the highest rate of unemployment.

 

North-West Europe has the lowest unemployment rate, while people born in North Africa and the Middle East have relatively high rates, which may be due to English language proficiency and the period of residence in Australia.

 

Impact

In summary, the Australian labour market for migrants is diverse and influenced by various factors such as skill level, age, English language proficiency, recent work experience, and the period since arrival.

 

EMPLOYMENT AND VACANCY BY OCCUPATION

 

Occupation Based Employment

Over the 12 months to May 2024, the largest increase in employment occurred as follows:

  • Professionals up by 116,100
  • Community and Personal Service Workers up by 100,300
  • Technicians and Trades Workers up by 66,400
  • The smallest increase occurred for Sales Workers which were up by 500

 

The below details the year change per the Report:

 

 

In 2023, there were peak shortages for trade workers. While it is great to see Professionals increasing, which were made up of health care professionals, it is unfortunate to see that technicians and trade workers were almost 50% less in Australia than that of professionals.

 

Australia has faced shortages in housing and resultant infrastructure needs.

 

Buildskills Australia said in 2024 that the government would need to build 60,000 homes each quarter, which would require a workforce of 90,000 people more than currently exists. It is clear therefore that the increase technicians and trade workers does not represent the actual need that Australia is required to meet in order to overcome issues such as housing and infrastructure.

 

Vacancy Report

The following trend was witnessed for the following vacancies:

  • Labourers were down by 22.8%
  • Professionals were down by 19.2%
  • Community and Personal Service Workers were down by 18.6%
  • Machinery Operators and Drivers were down by 17.7%
  • Technicians and Trades Workers were down by 16.7%
  • Clerical and Administrative Workers were down by 16.5%
  • Managers were down by 12.9%
  • Sales Workers were down by 11.3%

 

While vacancies declined for all occupation groups mentioned above, they remained elevated when compared to pre-pandemic levels.

 

At the more detailed occupation level, trend vacancies decreased in all 48 occupations over the year to May 2024.

 

Impact

The findings highlight a critical workforce shortage in Australia, particularly in technicians and trades workers, whose growth significantly lags behind the demand driven by housing and infrastructure needs. Despite overall employment increases, the decline in vacancies across all occupation groups points to ongoing challenges in meeting labour demands, especially in essential trades and technical roles.

 

PATHWAYS TO PERMANENT SKILLED MIGRATION AND RELATED LABOUR MARKET OUTCOMES

The Report used the analysis in the 2021 Australian Census and Migrants Integrated Dataset (ACMID) reports to analyse pathways to permanent skilled migration and related labour market outcomes.

 

Between 2012 and 2021, there were approximately 464,000 migrants who entered Australia under one of the four main skill stream visa programs – Employer Sponsored, Regional, Skilled Independent and State/Territory Nominated.

 

The five main pathways to permanency found were (listed highest to lowest):

  • Offshore to Skilled Independent;
  • Temporary Skilled to Employer Sponsored;
  • Offshore to State/Territory Nominated;
  • Student to Skilled Independent;
  • Student to State/Territory Nominated.

 

There were two key findings:

  • Temporary skilled visa holders had shorter pathways to permanency than those who first arrived in Australia on a student or working holiday visa; and
  • Temporary skilled visa holders had better labour market outcomes than any other permanent visa pathway.

 

Pathways to Permanency

Migrants who first arrived on a temporary skilled visa made the most seamless and shortest transition to permanency. A majority of these migrants made the transition in one step and the average time span was just under 3 years.

 

On the other hand, most migrants who first arrived on a student visa made the transition in two or three steps and the average time span was 4.5 years.

 

Similarly, most migrants who first arrived on a working holiday visa made the transition in two or three steps and the average time span was just under 4.5 years, which is slightly less.

 

Labour Market Outcomes

Migrants who first arrived on a temporary skilled visa had the best labour market outcome in comparison to any other pathway.

 

Of the five main pathways, the Temporary Skilled to Employer Sponsored had the best labour market outcomes which means the lowest unemployment rate and highest participation rate.

 

Impact

These findings suggest that Australian migration thrives on visa programs that involve employer sponsorship. The temporary skilled visa program is highly effective in providing migrants with a fast and seamless track to permanency, emphasising the importance of aligning immigration policies with labour market needs. Conversely, the longer transition time for students suggest a need to better support these migrants in achieving permanency and favourable employment outcomes, especially if they have chosen Australia to be the country they want to obtain their degree in.

 

In conclusion, the Australian labour market remains dynamic, with significant variations in employment trends across industries and regions, particularly affecting migrants. The disparity in job growth across regions, coupled with a rising unemployment rate, highlights the need for targeted interventions to address these imbalances.

 

For migrants, the labour market presents both opportunities and challenges. Employment outcomes vary widely based on skill level, language proficiency and length of residence in Australia.

 

Overall, the findings indicate that while Australia offers diverse opportunities, there are areas where policy adjustments could enhance the inclusivity and effectiveness of its labour market, particularly for migrants seeking long-term stability and success in their careers.

 

Report Author: Flora Dinh

Co-Authors: Laiba Fateh and Faridoon Hassan