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Skills deficits - New migrants are a vital resource

The Migration Policy Institute (MPI) has recently published the following paper:

Skills-Deficit---Immigrant-Workforce.pdf

The paper delves into the post-global economic crisis era, where employment and growth of national economies remain at the forefont of policy agendas in countries, including Australia.

I have noticed that the Australian government's policy has been re-prioritised around the buidling blocks of how our economy was created.   As with other nations such as Canada and Germany, Australia sees human capital as the most vital resouce. 

As a result DIBP policymakers and the Minister must make sure that migrants and temporary workers in Australia have the education, experience and ability to locate gainful employment and make a contribution to innovation and competitiveness in the Australian workforce.    As with other countries, Australia's labor market is constantly evolving.

Australia sees new migrants and those on 457 visas as an untapped resource that, when put through the 'sausage factory' otherwise known as the visa application, can spit out the other end and create the much needed competitiveness, productivity and bridge the skills gaps.  Then we have the Significant Investor Visa (SIV) applicants with their $5 million to invest.   To re-inforce the point, on Monday this week, Scott Morrison MP, our current Immigration Minister, in his current address at the MIA conference in Canberra, mentioned that it is the 'person' they want, not $5million in exchange for a visa. 

In Australia we see new migrants across a broad range of visa subclasses  experiencing different forms of transitional difficulty.  For example we have International Students completing degrees in Computing being faced with the very real concern that they may soon be required to complete work experience in addition to the formal Australian degree.  This might be because Australia is beginning to see a gap in technical competencies which cannot be overcome by completing a bachelor degree on it's own.  It would appear that Australia is moving towards a skills intergration model.  It would appear to me that this is a risk mitigation approach to accepting migrants into Australia on a long-term basis.  It is now becoming more about whether they can effectively integrate rather than whether they simply have the skill at an educational level.

The report attached above makes an interesting read.  It speaks to the heart of how countries such as Australia can address skills shortages.  Migration Policy Institute (MPI) Policy Analyst Meghan Benton looks at the 'toolbox' that policymakers have have available ot them to create a successful skills development strategy for a migrant workforce.  This includes English language and workplace training.  

“There can be lasting adverse effects when workforce preparation gaps prevent migrants from getting decent jobs with the potential for upward mobility,” said MPI President Demetrios Papademetriou.

“The inability of high-skilled immigrant workers to get jobs commensurate with their skills and experience represents wasted talent. Further, middle- and low-skilled workers who are unable to support their families may end up in a cycle of poverty and the most disadvantaged may become a net drain on public resources and transfer socioeconomic disadvantage to their children.”

The report essentially talks about 'how to make the most out of a migrant'.

“Immigration can be an opportunity rather than an obstacle for workforce development systems,” Benton said. “Considering the demographics that all advanced industrial societies confront, those that build institutions robust enough to accommodate the complex learner profiles of migrants will be on much better footing to meet the skills challenges of the future.”

I recommend reading the report.

 

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  • Liana - Allan
    Liana - Allan Thursday, 24 October 2013

    I just received this news in from Ord Minnett:
    In case anyone missed it, there was some great news reported in the Australian Financial Review this week.

    “Immigration Minister Scott Morrison has promised to revamp Australia’s scheme for attracting wealthy business migrants, maintaining the regime is “vague and unnecessarily prescriptive”.
    Under the current scheme, wealthy individuals applying for a ­Significant Investor Visa must invest at least $5 million in Commonwealth, state or territory government bonds or ASIC-­regulated ­managed funds or invest directly in an Australian proprietary company.


    But Mr Morrison says the government will review investment criteria to ensure greater flexibility and a wider range of qualifying investments can be considered.

    “The proposed turnaround time of nine months for the Significant Investor Visa under the former government, I believe is far too long for a program such as this,” Mr Morrison said in a speech to a national migration ­conference in Canberra.


    “It is no wonder that potential ­investors – and remember this is a ­program where people are putting $5 million into our economy – no wonder they are starting to get cold feet and look to ­alternatives elsewhere,” he said.

    “These people we are seeking to attract to Australia have demonstrated ­enormous entrepreneurial success.

    “In Australia, we celebrate wealth ­generators because they generate wealth which is pumped into our ­economy and provide benefits right across the economy for all ­Australians,” he said.

    “This programme is geared to ­bringing high net worth individuals who will transfer their wealth to ­Australia over a generation and we need to look at the program in ­generational terms.


    “This [also] requires the scheme to be flexible with the residence requirements of the principal applicant who will need to spend their time overseas predominantly running global businesses.”

    Mr Morrison said the federal ­government would also boost the ­capacity for assessments once the scheme had been remodelled.


    Australia wanted more people to ­create business, risk capital and create jobs, he said.

    The Australian Financial Review

    This greater flexibility and wider range of complying investments will only serve to reinforce the advantages of our offering.

    I am sure you will agree that the proposed improvements will be welcomed by all concerned.

    Please feel free to contact us to discuss our SIV offering.

    Kind regards,
    Luke Headland
    Private Wealth Manager
    Ord Minnett
    Ph +61 2 8216 6478
    Fax +61 2 8216 6311
    Email lheadland@ords.com.au

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