Nearly one-in-four skilled migrants living in Australia are over-qualified for their current job, according to a new report.
The Committee for Economic Development of Australia’s report estimates about 23 per cent of permanent skilled migrants - or some 34,000 people - in Australia are working in jobs beneath their skill level.
A lack of work experience in Australia as well as access to local networks were common reasons cited for the disparity, followed by language difficulties.
Accountants, civil engineers and chefs who have migrated to Australia were among those least likely to find work in their profession of choice.
The report uses the example of skilled migrants taking up jobs driving taxis because they can’t find work in their profession.
CEDA chief executive Melinda Cilento said Australia’s skilled migration system has served the country well, but there are areas where it must be improved, particularly as the country battles its way out of the coronavirus recession.
“As we emerge from COVID-19 we need a skilled migration system that is nimble and responsive to the needs of the economy,” she said.
“We are already hearing consistent concerns from our members about skills shortages while international borders remain closed, and the inability to access the skills needed to drive growth and investment, including digital and data opportunities.”
The report analyses data from the Department of Home Affairs to analyse how skilled workers are losing wages by taking jobs they are over-qualified for.
Across the economy, this disparity has cost migrant workers at least $1.25 billion in foregone wages between 2013 and 2018, the report found.
Australia’s inability to access these skills also has broader implications for the economy through lost productivity and innovation.
The report has been released as Australia faces its first period of , caused by border closures during the coronavirus pandemic.
The report identifies concerns this will remain a drag on economic growth and exacerbate the long-term challenges of Australia's economic recovery.
The report found that Australia’s permanent skilled migration system is not broken - but warned it was not realising its full economic potential.
“A system that does not enable access to critical skills in a timely fashion means we will be unable to keep up with global competition,” Ms Cilento said.
Prime Minister Scott Morrison has indicated he has an once international travel can recommence.
This includes targeting industries in need of skills and tailoring visa conditions to meet the workforce demands of regional areas.
The federal government has introduced some changes, including the , to attract highly-skilled migrants to Australia.
But CEDA has criticised this as a “band-aid” measure as part of migration policy that too often is adopting a “revolving door” approach.
The report recommends introducing a government-regulated online skills matching jobs platform to better connect skilled migrants and employers.
It also suggests giving permanent migrants earlier access to unemployment benefits - after four months instead of six years - saying this would give them a better chance to find suitable employment.
“What is required is structural and sustainable change, and the development of a system that can evolve as skills needs change,” Ms Cilento said.
