How Australia plans to connect 600,000 skilled foreign workers and the industries desperate for them​on February 2, 2025 at 11:00 pm

What’s the problem? 

Almost 45% of permanent migrants living in Australia – roughly 621,000 people – are working in a job below their qualified skill level, according to Deloitte research that the Activate Australia’s Skills coalition is using to make the case for change.  

More than 201,000 of those migrants are qualified in management and commerce, in excess of 80,000 are qualified engineers and just under 50,000 are trained health professionals.

Frustratingly for migrants and bosses alike, the ready-made workforce remains untapped as employers across the economy are struggling to find skilled workers.

What is causing it?

“The skills recognition process is cumbersome, costly, slow and in some cases completely unnecessary.” 

That is the view of the Master Builders Association chief executive, Denita Wawn, and is an opinion shared across the peak bodies involved in the campaign. 

As well as overcoming language barriers, overseas-trained workers must navigate a complex web of assessment processes and licensing authorities. 

Then there’s the cost. 

A 2023 review of the regulatory settings in the healthcare system found an overseas-trained GP had to wait between 35 and 130 weeks, and spend up to $51,000, to practise in Australia. 

There is no national subsidy or loan scheme to lower the upfront costs, meaning new arrivals must foot the bill.

What is the solution?

Of all the problems and complexities in the system, the campaign points to one fundamental flaw: the lack of a single entity to manage it all.

Creating a national governance body in charge of all skills assessment and qualifications recognition is among the campaign’s recommendations, along with offering means-tested financial help to applicants and setting up information centres in areas with high migrant populations. 

The campaign, which launched in October, estimates the country is losing up to $9bn each year in economic activity by not unleashing the full potential of skilled migrants.

An Essential poll of 1132 voters – commissioned by the campaign in January and seen by Guardian Australia – found 61% support for recognising overseas-obtained skills and qualifications in Australia, provided appropriate safeguards were in place.

A similar percentage agreed that recognising overseas qualifications was an “effective” way of addressing skills shortages in industries such as skills and healthcare.

“Many governments have tinkered at the edges of Australia’s skills recognition progress, when what is really needed is wholesale reform,” said the chief executive of Settlement Services International, Violet Roumeliotis, whose organisation is spearheading the campaign.

What does the government say?

Labor is taking some steps to streamline the process for certain occupations, including housing and construction and nursing.

Starting in March, assessment and registration for qualified nurses from six “comparable countries” – including the US and UK – will be fast-tracked, cutting the wait time by up to 12 months.

Guardian Australia contacted the skills minister, Andrew Giles, for comment on Labor’s position on the campaign to overhaul the wider system.

In a statement, a government spokesperson did not address the campaign’s main recommendations but left the door open to some changes in the future.

“Since coming to government, we have been working with states and territories, unions and industry to make the skills recognition system easier to navigate,” they said.  

“There is always more to do and we are committed to continuing our work in this important space.”

The shadow skills minister, Sussan Ley, was contacted for comment.