Australia sets student visa record with 673,000 active visas; world record ratio amid policy shifts

According to Tom Connell from Sky News, 51 percent of international student graduates with a bachelor’s degree who remain in Australia after three years are working in low-skilled Level 4 or Level 5 jobs.

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Australia sets student visa record with 673,000 active visas; world record ratio amid policy shifts
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In October 2023, there were nearly 673,000 active student visas in Australia, a record high which equates to an unprecedented ratio of one in 30 people in Australia holding either a student or post-study work rights visa, setting a world record for the share of a nation’s population.

Reduction of PSWR

The recently unveiled migration strategy from the Albanese government includes a reduction in PSWR for international students aiming to limit PSWR to two or three years, down from the previous durations of four, five, and six years as of July.

However, the new restrictions in Australia will exempt Indian students.

Canada is aligning its PSWR system with a limit of three years for graduate programs, eliminating the previous 18-month extensions introduced in 2021. This change brings Canada in line with the United States and New Zealand, both of which also allow for a maximum of three years of post-graduation work rights.

On the other hand, the United Kingdom is reevaluating its automatic two-year post-study work visa, which was reinstated just 30 months ago.

Prejudice against international students

Ly Tran, an international education researcher at Deakin University, asserts that “prejudice” against international students and graduates is increasing in Australia. Tran argues that the reduction of post-study work rights won’t assist international graduates in gaining the necessary job experience and won’t alleviate skill shortages in higher-skilled professions.

Tran criticizes the migration strategy’s proposal to lower the maximum eligible age for a Temporary Graduate Visa from 50 to 35. She argues that this change will force skilled individuals to pursue education, employment, and residence in other countries.

She also contends that reducing the maximum age cap to 35 unfairly affects graduates with caregiving responsibilities, such as mature-age mothers who delay returning to university for postgraduate studies.

Lower employment rates

According to Tom Connell from Sky News, 51 percent of international student graduates with a bachelor’s degree who remain in Australia after three years are working in low-skilled Level 4 or Level 5 jobs.

The most recent Graduate Outcomes Survey (GOS) supports the observation that international graduates in Australia have lower employment rates, participation rates, and median earnings compared to their domestic counterparts.

The labor market outcomes for international graduates from Australia’s major source countries—China, India, and Nepal—show concerning trends, particularly in terms of full-time employment.

Underclass migrants excluding Indians

Australia’s international education policies have contributed to the creation of a significant underclass of low-paid, low-skilled migrant workers.

The recent migration accords signed with India further facilitate this trend by granting extended student visas and work opportunities for Indian graduates, potentially exacerbating concerns about labor market outcomes and the exploitation of low-skilled workers.

These agreements with India are expected to enhance Australia’s appeal for lower-skilled Indians seeking work and residency in the country, potentially leading to increased migration from India.

Leith van Onselen, chief economist at Macrobusiness notes “Instead of lowering standards to entice large volumes of sub-par students to Australia, policymakers should instead focus on attracting a small pool of excellent (genuine) students by significantly raising financial barriers to entry as well as entrance requirements (particularly for English language proficiency), and removing the clear link between studying, working, and permanent residency.” 

Research partnership

The Australia India Institute has released the “Mapping Higher Education Engagement Between Australia and India: A Compendium,” offering a comprehensive guide for universities seeking to tap into India’s surging demand for top-tier tertiary education.

Australian universities will be able to use this as a clear blueprint for success in India’s booming education market.

Federal Education Minister Jason Clare launched the report in Gandhinagar, noting the critical role of education and research in strengthening the Australia-India relationship and shaping the future workforce, an AII press release reported.

Nathan Yasis

Nathan Yasis

Nathan studied information technology and secondary education in college. He dabbled in and taught creative writing and research to high school students for three years before settling in as a digital journalist.

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Nathan Yasis

Nathan Yasis

Nathan studied information technology and secondary education in college. He dabbled in and taught creative writing and research to high school students for three years before settling in as a digital journalist.