Google AI


Modern Australian

Australia is welcoming more migrants but they lack the skills to build more houses

  • Written by: Brendan Coates, Program Director, Economic Policy, Grattan Institute

Australia has an acute shortage of housing. Renters across the country face steep rents rises and record-low vacancy rates.

At the same time, net overseas migration has surged to a record high of 518,100 in the past financial year as international students, working holiday-makers, and sponsored workers returned to Australia after our international borders reopened and fewer migrants departed.

The trouble is, very few migrants arriving in Australia come with the skills to build the extra homes we need.

Migrants are back but lack home building expertise

Migrants are less likely to work in construction than in most other industries. About 32% of Australian workers were foreign born, but only about 24% of workers in building and construction were born overseas.

And very few recent migrants work in construction. Migrants who arrived in Australia less than five years ago account for just 2.8% of the construction workforce, but account for 4.4% of all workers in Australia.

Most migrants who work in construction in Australia have been here for a long time. The largest migrant groups in construction are permanent skilled migrants (including their spouses and children), followed by New Zealand citizens (who can remain in Australia indefinitely on a temporary visa) and permanent family visa-holders (many of whom arrived in Australia long ago as the spouses of Australian citizens).

But among those migrant groups where we’re now seeing the biggest rebound in numbers – international students, international graduates and working holiday makers – relatively few work in construction. And just 0.5% of all construction workers are on a temporary skilled visa.

Changing this situation won’t be easy. After all, Australia rightly wants to attract highly skilled migrants who will make the biggest long-term contribution to the country.

That means selecting highly skilled migrants – mostly tertiary-trained professionals. However, the construction workforce is one of Australia’s least educated. Just 22% of Australia’s construction workforce hold a diploma-level qualification or higher – the least of any industry.

What the government should do

But there are steps the federal government can take to make Australia more attractive to skilled trades workers who can help build the homes we desperately need.

First, the government should make it easier for employers to sponsor skilled trades workers to get a visa.

It should abolish labour-market testing and reduce sponsorship fees for the new “Core Skills” temporary sponsored visa stream – for skilled workers earning between A$70,000 and A$135,000 a year – to encourage more skilled trades workers to migrate to Australia.

The introduction of labour-market testing and extra fees like the Skilling Australians Fund Levy are big reasons why the number of visas granted to temporary sponsored workers in construction has fallen from more than 9,000 in 2011-12 to just 4,021 in 2022-23.

Read more: Australia's skilled migration policy changed how and where migrants settle

The government should also extend its new streamlined, high-wage “Specialist Skills Pathway” sponsored visa stream to skilled trades workers.

That pathway will be offered to workers who earn at least $135,000 a year. Visas will be approved in a median time of just seven days. Yet skilled trades workers earning more than $135,000 won’t qualify for the new streamlined pathway.

Second, the government should streamline the skills and occupational licensing process for skilled trades workers.

Currently, overseas qualified tradespeople must have their skills assessed separately to qualify for a skilled visa and to be granted a licence by a state or territory to practise their trade once in Australia.

The recent Parkinson Migration Review showed how that process can cost more than $9,000 for some skilled trades and take up to 18 months.

The Albanese government should work with states and territories to better align these processes. And it should pursue greater mutual recognition of qualifications and licences with other countries for skilled trades, as recommended recently by the Productivity Commission.

Migration offers big benefits to Australia. But we’d benefit even more if it provided more of the skilled workers we need to help fix the housing shortage.

Read more: A prefab building revolution can help resolve both the climate and housing crises

Authors: Brendan Coates, Program Director, Economic Policy, Grattan Institute

Read more https://theconversation.com/australia-is-welcoming-more-migrants-but-they-lack-the-skills-to-build-more-houses-222126

Understanding a dental implant Melbourne Treatment Plan

A dental implant Melbourne patients may consider is one option for replacing a missing tooth, but suitability depends on oral health, bone support a...

How 3PL Logistics Australia Supports Faster and More Efficient Supply Chains

Why Has 3PL Logistics Become Important for Growing Businesses?  Gone are the days when supply chains were simpler and in minimal quantity. Now, the...

Common Skin Concerns and Treatment Options Available in Melbourne

Skin concerns can develop gradually or become noticeable following changes in age, lifestyle, sun exposure or hormonal factors. Pigmentation, rednes...

Why a Code-Compliant Home Can Still Feel Uncomfortable

When people build or renovate a home, they usually expect that meeting current building requirements will also produce a comfortable place to live. ...

Breach of Contract in Business: What Are Your Options?

Contracts are essential to business relationships. They establish expectations, allocate responsibilities and provide a framework for delivering goods...

How Pest Control Companies Can Rank for the Problems Customers Search First

Introduction SEO for Pest Control needs to start with the customer’s problem. Most people do not search for pest services in a neat or technical wa...

What Are the Benefits of Renovating an Older Home in Sydney?

Sydney has plenty of character homes, from Federation cottages to mid-century brick homes. Renovating rather than rebuilding can preserve what makes t...

Pool and Deck Design: How to Plan the Perfect Outdoor Living Space for Your Sydney Home

For many Australians, the backyard is where life happens. Summer barbecues, weekend swims and long evenings outdoors are all part of the lifestyle, ...

Is Solar Pool Heating Worth It? What Sydney Homeowners Should Know

There's nothing quite like a backyard pool on a hot Sydney day. But once autumn rolls in, many pools sit unused for months because the water is simp...

Planning a Luxury House Move: A Week-by-Week Timeline for Prestige Sydney Homes

Selling or buying a prestige home is a major milestone. Whether it's a waterfront residence in Birchgrove, a grand Federation home in Haberfield or ...

Downsizing or Upgrading Your Caravan? Here's How to Sell It Without the Hassle

Selling a caravan can feel like a major task, especially when you are unsure about its value, paperwork, or how to find a buyer. Whether you are dow...

The Best Overseas Adventure Holidays for Australians Who Love the Outdoors

Australia offers no shortage of incredible outdoor experiences, but sometimes the best way to satisfy your sense of adventure is to head overseas. A...

Cape Town Wine Shuttle: Winelands Tasting & Tours

Embark on an unforgettable journey through the picturesque Cape Winelands, where world-class wines and breathtaking scenery await. Our Cape Town Win...

Metal Fabrication: Choosing Metal Fabrication Melbourne Services for Custom Projects

What Modern Metal Fabrication Involves From individual components to complete structures, metal fabrication brings together processes such as desig...

Why Giant Rats Tail Grass Keeps Coming Back After Spraying

Giant Rats Tail Grass (GRT) is one of the most frustrating pasture weeds for farmers and lifestyle property owners. You spray an infested area, see th...

When Custom Cardboard Boxes Make Sense for Your Business

Custom cardboard boxes can be useful when a standard carton does not fit a product, packing method or presentation requirement particularly well. A ...

Full-Height vs. Pop-Top Caravan: Which Is Better for Family Travel across WA?

A pop-top caravan is an excellent choice for travellers who want the comfort of a caravan without committing to a larger, bulkier setup. With a lowe...

Bottle Label Printing: Key Factors for a Professional Finish

Why the Printing Method Matters When businesses need packaging or printed containers developed for a particular application, the right supplier can m...