Universities Australia – the lobby group for Australia’s 39 largest universities – has lodged a submission with the Albanese Government’s immigration review, which demanded that temporary graduate visas be automatically granted to all international students who complete their study and pass character checks.

Why? Because “our global competitors are increasing the number of international graduates in their migration mix in recognition of the significant contribution they make. [And] Australia is falling behind”, according to Chief executive Catriona Jackson.

This comes as the latest Graduate Outcomes Survey showed that most migrant graduates are either unemployed or underemployed, as well as poorly paid.

Specifically, only 41.6% of international graduates living in Australia were employed full-time in 2021, versus 68.9% of domestic student graduates:

The median full-time salary of international graduates was also only $54,300 in 2021, well below the $65,000 median full-time salary of domestic graduates:

Thus, a minority of international graduates work full-time, and of those that do work full-time, they are very poorly paid. The median total wage of international graduates would, therefore, obviously be even worse, given most international graduates work part-time (unlike domestic graduates).

Employment outcomes were poor across almost every international student source nation:

Finally, the percentage of international graduates working in managerial and professional occupations is also way below domestic graduates:

In particular, only 44.3% of international undergraduates were working as professionals in 2021, well below the 55.1% of domestic graduates.

Only 41.7% of international postgraduates were working as professionals in 2021, roughly half that of domestic postgraduates (81.8%).

Hilariously, researchers at Griffith University have also noted that employment outcomes of international students are poor:

Up to one-third of international graduates who stay in Australia post-study are still unemployed six months after graduating. This is the case even with historically low unemployment rates.

Full-time employment rates for international graduates are also consistently lower than for domestic graduates. For example, in 2021, the full-time employment rate for international graduates with an undergraduate degree was 43.0% compared with 68.9% for domestic graduates…

Many students and graduates report they are taking jobs that are not related to what they have studied, often for low wages.

Studies also show that even if international students with an undergraduate degree find full-time employment, they earn 20% less than domestic graduates…

Thus, following Universities Australia’s recommendation and handing out post-study graduate visas like tic tacs would see a full-blown migrant underclass develop, worsening skills shortages and mismatches, undercutting local workers, and adding to infrastructure and housing strains.

Policy should instead focus on securing jobs for domestic graduates. Otherwise, what’s the point of being Australian?

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also Chief Economist and co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

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