Australia 'economically benefiting' from foreign workers

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Created on Tuesday, 22 January 2013 14:25

Written by Editorial staff

Despite less than favourable economic conditions, research has found that Australian employees are still recruiting overseas workers.

The latest KPMG Skilled Migration Survey found that through streamlined government administration - the 457 immigration visa system that allows workers to be employed on a temporary basis - is acting to absorb some of the economic shock from layoffs in some sectors.

Karen Waller, the national spokesperson for migration services with KPMG, said the imminently retiring baby boomers will create a vacuum in the workforce, which will need to be filled.

She commented: "Our latest survey suggests that many Australian organisations are already seeking to manage this generational change within their broader employment and human resource strategies.

"This is good news as long-term demographic changes (including rising dependency ratios) will demand that we put a premium on enhancing workforce skills and productivity. Skilled migration should play an important role in that process."

Additionally, the survey found that there was a preference among Australian employees to seek out local labour. However, KPMG said by hiring overseas employees, there can be a transfer of knowledge that will enhance the skills of the local workforce.

The research also found there has been some apprehension in the workplace, as the demand for foreign skilled workers has decreased.

This could be attributed to growing concerns over international and domestic economies, however, Ms Waller added that it presents an opportunity for Australia to be the international destination for skilled workers.

The subclass 457 business (long stay) visa system has been found to be the most popular when bringing workers overseas because it is flexible and fairly straightforward. The majority are from English-speaking countries including the United States, the United Kingdom, South Africa, Ireland and India.

Ireland and China have seen the biggest increase in these visas.

In terms of skills shortages, 62 per cent of respondents said they were understaffed in some way. The mining sector in particular displayed this, with two-thirds of resources companies saying that they are experiencing shortages.

Western Australia has the greatest deficiency, followed by Queensland and New South Wales.

The Department of Immigration and Citizenship has reported that the number of primary 457 visa holders, as of the final day of the 2011-12 financial year, stood at 91,050 - a 26.4 per cent increase over a 12 month period.

The majority of businesses seem to be using these visas correctly - that is to employ a skilled foreign worker whose role has been difficult to find locally. Of businesses who responded, 61 per cent had fewer than five per cent of their workforce on those 457 visas.