Why do employers really recruit workers on the sc457 visas? Is it due to a skills shortage or is it because employers prefer foreign workers, or something else?

Business groups insist they need foreign workers due to a skills shortage while unions claim that the sc457 workers are among the key causes of the high unemployment levels in Australia.

Some statistical perspective might help. There are some 11.7 million currently employed in Australia according to ABS statistics. Workers on the 457 visa scheme account for about 106,750 jobs. This is less than 1 per cent of the workforce.

In addition, the DIBP figures indicate that as Australia’s GDP rises, the numbers of 457 workers rise in concert with it. This makes sense because the 457 scheme allows Australian business to tap into skilled foreign resources as the economy demands.

With unemployment rates sitting above 6 per cent, the number of sc457 workers has fallen in the last year by an estimated 4.5%.

So it all looks to be working well. However some academics are calling for the sc457 regulations to be tightened further. An analysis of a 2012 survey of some 1600 Australian employers by Sydney University researchers assert this is needed because employers may be showing an inherent preference for foreign workers - not because of a skills shortage or that they believe foreign workers are better:

“We have found that a significant minority of employers are using the scheme to engage workers they saw as harder working or having a “better attitude” (19%) or are more loyal than their Australian counterparts (19%). Of employers surveyed, 10% said that Australian workers do not like doing the job and 6% claimed Australian workers have a poor attitude,” note researchers Chris F. Wright, University of Sydney and Andreea Constantin, University of Sydney writing on the website: http://www.hospitalitymagazine.com.au/food/news/evidence-of-employers-misusing-457-visas-shows-nee

The researchers say that were significant variations between employers in different industries.

“Employer respondents across all industries are three times more likely to be more satisfied with workers on 457 visas than similar Australian workers, but most employers (67%) are equally satisfied with both groups.

“The picture is rather different in the hospitality industry, where employers are 13 times more likely to prefer 457 visa workers than similar Australian workers, and only a minority (45%) are equally satisfied with both groups.”

The researchers conclude that, “While the vast majority (86%) of employers surveyed say they experience challenges recruiting workers locally, this does not equate to a skills shortage. What they’re short of is workers willing to do the work for the wages and conditions currently being offered, which in some cases won’t be high enough to attract more people locally.”