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By Jessica Thakur
June 3, 2023
Source: Migration strategy outline, DHA
Australia's Migration System Fails to Deliver for the Country and Migrants
In a scathing review, it has been revealed that Australia's current migration system is plagued with issues, failing both the nation and migrants alike. After a decade of aimless progression and fragmented adjustments, the system lacks direction, burdened by complexity, inflexibility, and inefficiency.
At each stage of the system, challenges arise, undermining its ability to prioritize migrants who can enhance Australia's economic prosperity and security. While migration has historically contributed to long-term productivity, participation, and innovation in the workforce, the past decade has witnessed a shift towards a backward migration system. Skilled migrants opting for Australia have dwindled, while a growing number of migrants with limited skills have been accepted. This misalignment obstructs the fulfillment of challenges Australia faces, failing to secure sovereign capabilities and manage the transition to a net-zero economy. The existence of multiple migration-related occupation lists further exacerbates the problem, as they fail to reflect the current and forecast labor market needs, relying on outdated definitions that have remained largely unchanged since 2013.
The system's complexity poses obstacles for both employers and migrants. While other countries simplify their processes to attract skilled migrants, Australia's migration system becomes increasingly convoluted, jeopardizing its competitive edge in the global race for talent. Over a hundred different visas, arcane regulations, and numerous requirements burden the system unnecessarily, deterring potential migrants. Shockingly, even in sectors facing critical shortages of workers, overseas-trained nurses are subjected to exorbitant costs of up to $20,000 and waiting periods of up to 35 months for qualification recognition and visa approval. The labor market testing process for employers is equally cumbersome, failing to effectively serve the needs of both unions and businesses. Additionally, the reliance on outdated technology from the 1980s and 1990s hampers efficiency and integrity in visa processing.
Post-arrival, the system falls short in delivering favorable outcomes for both Australians and migrants. Despite migration driving the majority of population growth, there has been a lack of national long-term planning that integrates migration with state and territory government strategies for infrastructure, housing, and services. Consequently, many migrants possess skills that are in high demand but find themselves working in positions that do not match their qualifications. A staggering 50% of students who remain in Australia after studying end up in jobs below their skill level, signaling a wasted decade in migration management. Moreover, migrant workers face a heightened risk of exploitation, which not only affects their well-being but also leads to poorer working conditions for local workers.
In addition to the systemic shortcomings, Australia's migration system fails to align with core Australian values of integrity, fairness, and inclusion. Abuses of the visa system have gone unaddressed, resulting in a growing population of "permanently temporary" migrants, with 173,000 individuals who have spent over five years in Australia on temporary work or student visas. To achieve true economic inclusion, especially for migrant women, efforts must be made to eradicate disparities in labor market participation rates between migrant women and their Australian counterparts.
Given the wasted decade and mounting challenges, Australia cannot afford to allow its migration system to drift any longer. Urgent action is required to establish a more targeted, simplified, and efficient migration system that serves the national interest, facilitates migrant integration, and unlocks the full potential of migrants to thrive in Australia.
Proposed Reforms Aim to Align Australia's Migration System with National Needs and Values
Australia's migration system has the potential to significantly contribute to the nation's economic prosperity and security when it effectively aligns with the country's requirements. To address economic and geostrategic challenges, there is a growing need for a more targeted system that prioritizes Australia's interests while upholding core values of integrity, fairness, and inclusion.
Outlined by five core objectives, the proposed reforms aim to redefine Australia's migration system:
1. Building Australia's prosperity by increasing productivity, addressing workforce demands, and supporting exports.
2. Ensuring a fair labor market that complements the jobs, wages, and conditions of Australian workers.
3. Fostering a cohesive community of Australians.
4. Safeguarding Australia's interests on the global stage.
5. Establishing a fast, efficient, and equitable system.
In shaping these policy shifts, the Review of the Migration System provides valuable guidance, emphasizing the following guardrails:
- A tripartite approach involving government, business, and worker representatives.
- Universality in considering the needs and aspirations of all Australians.
- Evidence-based strategies to identify labor market requirements.
- Increased mobility for temporary migrants in the labor market.
- Commitment to integrity and ethical practices within the temporary migration framework.
Fundamental policy shifts across each stage of the system are proposed to ensure that Australia's migration system effectively serves the nation:
1. Prioritizing individuals who can enhance economic prosperity and security by clearly defining the role of the migration system in addressing national challenges and opportunities. The structure and settings of permanent and temporary programs will be redesigned to attract a skilled workforce and facilitate international engagement.
2. Simplifying the system for employers and migrants to streamline processes and expedite the entry of skilled individuals who meet Australia's needs. Additionally, efforts will be made to ensure that migration supplements, rather than substitutes, a highly skilled local workforce. The involvement of Jobs and Skills Australia will be formalized, with evidence-based decision-making through tripartite collaboration.
3. Delivering favorable outcomes for both Australians and migrants after their arrival. Collaboration with state and territory governments will be strengthened to align the migration system with regional requirements, ensuring appropriate investments in housing, infrastructure, and services. Efforts will also focus on improving labor market outcomes for migrants and eliminating exploitation within the system.
4. Restoring Australian values of integrity, fairness, and inclusion throughout the system. Measures will be implemented to enhance integrity, reduce abuse, and provide clearer pathways to permanent residence, preventing migrants from being trapped in a state of "permanently temporary" status. Moreover, special attention will be given to unlocking the potential of all migrants, particularly migrant women, to foster their inclusion in national endeavors.
By implementing these reforms, Australia aims to establish a migration system that not only addresses national needs but also upholds the values that define the nation.
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