Over 600,000 permanent migrants in Australia are working below their skill level, costing the economy up to $9 billion each year. Experts are urging the federal government to address this growing issue, which not only impacts productivity but also leaves skilled workers underemployed.
Despite the challenges posed by skills mismatches, the potential to improve Australia’s workforce through better recognition of migrant qualifications could deliver significant economic gains. This issue is at the forefront of discussions about the nation’s economic future, with business, union, and civil society leaders examining solutions at a key roundtable in Canberra.
The Barriers Migrants Face in Getting Their Skills Recognised
A large proportion of permanent migrants in Australia are unable to utilise their qualifications fully, a phenomenon known as the “migrant skills mismatch.” According to figures from the Australian government, approximately 620,000 migrants are currently employed below their skill level.
Dane Moores, head of strategic relations at Settlement Services International, describes several factors contributing to this issue, including high costs, complex processes, and limited access to information. Migrants often face financial barriers that prevent them from getting their overseas qualifications recognised through the required formal channels. For those who can afford the process, navigating the bureaucratic red tape remains a challenge.
The Activate Australia’s Skills campaign, an alliance of businesses, unions, and community groups, has called for the introduction of a national governance system to streamline skills and qualifications recognition. This system, the group argues, would reduce costs and increase accessibility for migrants, providing them with the opportunity to contribute more effectively to the workforce.
Discrimination and Lack of Local Experience Continue to Limit Opportunities
In addition to financial and bureaucratic obstacles, migrants also face challenges such as discrimination and a lack of local work experience. Studies have shown that applicants with non-Anglo names are 57% less likely to be considered for leadership roles, despite identical resumes. Language barriers also complicate the integration process, and professional networks that are crucial for career advancement are often inaccessible to migrants.
The engineering sector is one area where these challenges are particularly evident. Engineers Australia reports that while two-thirds of Australian-born engineers are employed in engineering roles, only half of overseas-born engineers work in their field. The organisation notes that around 47% of migrant engineers seeking work are unemployed, highlighting the need for reform in skills recognition and licensing processes.
To address these issues, industry leaders are calling for more transparent and consistent skills recognition procedures, as well as reforms to reduce licensing and registration barriers between states and territories.
In response, the government has introduced initiatives like the Free TAFE program to help address critical workforce shortages in fields such as construction and healthcare. However, experts argue that these efforts need to be expanded to tackle the systemic barriers preventing skilled migrants from reaching their full potential in Australia’s workforce.
