Major source countries for overseas students, such as China, India, and Nepal, report poor labor market outcomes in terms of full-time employment for their graduates in Australia.
Major source countries for overseas students, such as China, India, and Nepal, report poor labor market outcomes in terms of full-time employment for their graduates in Australia.
In recent years, Australia has become a prominent destination for international students due to its post-study work rights, attracting a high proportion of international students relative to its population.
As of October 2023, the country witnessed a record high of nearly 673,000 student visas. And 193,000 temporary graduate visas, indicating that approximately one in every 30 people in Australia was on one of these visas — a world record.
Migration strategy
The Albanese government’s “new migration strategy” introduced significant changes to the PSWR, reducing the duration from the previous four, five, and six years to two or three years. Notably, Indian students, who represent Australia’s second largest and fastest growing major student cohort, are exempt from these changes. This aligns Australia’s policies more closely with those of the United States, New Zealand, and Canada, which also offer up to three years of PSWR.
However, the United Kingdom is reconsidering its automatic two-year PSWR policy, reinstated 30 months ago.
Ly Tran, an international education researcher at Deakin University, criticizes these policy changes. Tran argues that reducing the duration of PSWR will adversely affect international graduates’ ability to gain necessary job experience and address skill shortages in higher-skilled professions. She also criticizes the proposed reduction in the maximum eligible age for a temporary graduate visa from 50 to 35, highlighting its potential negative impact on mature-age graduates, particularly those with career responsibilities.
“Reducing the maximum age cap to 35 also unfairly impacts graduates with career responsibilities, such as mature-age mothers who delay returning to university for postgraduate studies,” she said.
There is a growing debate about the role of international student graduates in filling skill shortages in the Australian economy. A graphic from Sky News’ Tom Connell indicates that 51 percent of international student graduates with a bachelor’s degree still in Australia after three years are employed in low-skilled Level 4 or Level 5 jobs. This is corroborated by the Graduate Outcomes Survey, which shows that international graduates generally have lower employment rates, participation rates, and median earnings than domestic graduates.
Additionally, major source countries for overseas students, such as China, India, and Nepal, report poor labor market outcomes in terms of full-time employment for their graduates in Australia.
Critics argue that the influx of international students has contributed to an underclass of low-paid, low-skilled migrant workers, exacerbating Australia’s skills shortage crisis. However, recent migration accords signed with India, including provisions for five-year student visas and extended work rights for Indian graduates, suggest a continuing trend towards attracting international students.
To address these challenges, some propose refocusing Australia’s international education policy towards attracting a smaller number of high-quality students. This could involve raising financial and academic entry requirements, particularly for English language proficiency, and decoupling the pathway from studying in Australia to obtaining permanent residency. The emphasis should be on quality over quantity and excellence over volume to prevent issues like youth unemployment, wage theft, exploitation, and overburdened housing and infrastructure, as well as the growth of a migrant underclass.
Australia’s approach to international education and post-study work rights is at a crossroads. Balancing the economic benefits of international students with the need to maintain high standards and positive outcomes for both the students and the Australian labor market is a complex and evolving challenge.
