Australia’s migration hits record net annual loss since post-WWII: Our 5-point report on ABS’ recent Census release on Overseas Migration

In terms of filling the highly-skilled and technical roles our market is crying out for, particularly in the infrastructure and construction space, skilled migration is one solution which will produce timely results. Despite this, we are still seeing a widespread hesitancy or lack of awareness for companies to leverage overseas talent to address skills shortages.

The recent release of Australian Bureau of Statistics’ Census data gives us a wealth of information about overseas migration but here are our top 3 findings:

 

  1. In 2020-21, net overseas migration saw a loss of 88,000 people – the first loss since 1946, following the end of WWII. Akin to the economic undertone of the post-war climate, Australia’s skilled migration plays a clear role in economic recovery and nation building. So why the hesitancy for offshore recruitment? Recently we participated in a multicultural Career Fair which we took the opportunity to highlight the disparity of the need for skilled labour yet the hesitancy of companies to invest in it. You can read our points in the article attached.

 

  1. What exactly are the tangible touch points of skilled migration for the economy? We know migration has transformational flow-on benefits to the economy, but what are the actual impacts of overseas migration? To name a few:
    • Mitigates the effects of an ageing population and workforce, adding younger workers who have high participation rates and R&D
    • Social cohesion and cultural diversity
    • In contributing to GDP (Estimated $1,625b by 2050), which improves living standards
    • According to the Migration Council of Australia, by 2050, each individual migrant will on average be contributing approximately 10 per cent more to Australia’s economy than existing residents
    • Expansion in exports and trade – particularly the infrastructure and manufacturing industry who can receive large gains from migration.

 

  1. Historically, there has been a net loss of the Australian-born population, as more depart than return. Post-COVID-19, this long-term trend has been reversed however our market should not expect that these returned expats will now contribute their skills to the local labour market. In fact, KPMG Australia chief economist, Dr Brendan Rynne even highlighted this in their interview with the Sydney Morning Herald, saying that jobs were being left unfilled because of a mismatch between the skills people have who are currently available to work and skills employers are seeking to hire.

With these three findings in mind, here are our two key recommendations to take-stock of the benefits of migration and its impact on the labour market:

  1. An outcome from the 2022-23 Budget, saw a significant growth in a number of quotas for each stream in the Skilled Migration Program including:
    • Employer Sponsored Visa: 8,000 more allocations
    • Skilled Independent 189 Visa: over 10,000 more allocations
    • Skilled nominated Visa 190: 8,800 more allocations
    • Skilled Regional visa 491 or visa 494 will more than double to 25,000 places to support growth in regional Australia.

With more allocations and additions to the Skilled Occupations List, companies are supported even more to deliver projects using skilled offshore labour.

  1. Take advantage of Engineers Australia’s initiative to decrease the skills shortage in the industry with the free fast-tracked skills assessments.

Taking stock of this initiative means candidates who are armed with the technical skills but lack the local skills, can leverage their opportunity in the market – and there are plenty of them!

Consisting of an experienced team of migrants ourselves, we understand the ins and outs of the application process and are committed to providing not just recruitment of talent, but assisting our candidates and clients throughout the migration process to make it as efficient and cost-effective for all parties involved.

If you are struggling to filled skilled roles to deliver your priorities and projects, get in touch with us to speak about the solution of migration recruitment so you can start delivering and profit!

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