Why Experience Is Not Enough for Migrants in Australia
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Migrants in Australia face significant challenges in translating their international experience into local employment opportunities, according to recent reporting by SBS Australia. A 2026 study by the Migration Council Australia found that 42% of skilled migrants in the country experience underemployment, defined as working in roles that do not fully utilize their qualifications or expertise. This issue has sparked debate over immigration policies and labor market integration strategies.
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Underemployment Rates Among Skilled Migrants
The Migration Council Australia’s research, conducted in partnership with the Australian Bureau of Statistics, analyzed data from 2019 to 2026. It revealed that 31% of migrants with overseas qualifications worked in jobs requiring lower skill levels than their training. For example, 18% of engineers from India and 22% of accountants from the Philippines were employed in administrative roles. “Many of these individuals have decades of experience, but their credentials are not recognized here,” said a council spokesperson.
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The problem is exacerbated by Australia’s credential recognition system, which requires migrants to undergo separate assessments for each profession. Unlike countries such as Canada, which uses a centralized process, Australia’s approach involves multiple agencies, including the Australian Skills Quality Authority (ASQA) and industry-specific boards. This fragmented system often delays employment and discourages migrants from pursuing careers in their field.
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Policy Implications and Industry Responses
Business leaders have called for reforms to align with global standards. The Australian Industry Group (AIG) released a 2026 report stating that underemployment costs the economy $12 billion annually in lost productivity. “When skilled workers are underutilized, it harms innovation and competitiveness,” said AIG CEO Paul Howes. The group has lobbied for a unified credential assessment framework, similar to New Zealand’s, which streamlines recognition across sectors.
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Employers also face challenges in integrating migrants. A 2025 survey by the Australian Human Rights Commission found that 37% of companies reported difficulty in matching migrant skills with job requirements. Some businesses have initiated mentorship programs to bridge the gap. For instance, tech firm Atlassian partnered with the Refugee Employment Program to provide training for migrants in software development. “We’ve seen a 25% increase in retention rates among participants,” said a company representative.
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Government Actions and Future Outlook
The Australian government has introduced measures to address the issue. In 2026, the Department of Home Affairs launched a pilot program to fast-track credential assessments for high-demand professions, including nursing and engineering. However, critics argue the initiative covers only 15% of eligible migrants. “This is a step in the right direction, but much more needs to be done,” said Senator Katy Gallagher, who chairs the Senate Committee on Migration.
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The issue also raises questions about the long-term economic impact. A 2026 analysis by the Reserve Bank of Australia noted that underemployment among migrants could reduce national productivity growth by 0.8% over the next decade. “Australia’s labor market is highly dependent on skilled migration, but we’re not maximizing this asset,” said RBA economist Dr. Emily Tan.
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Global Comparisons and Lessons Learned
Comparative data highlights Australia’s unique challenges. In 2025, the OECD reported that 28% of skilled migrants in Canada faced underemployment, compared to 42% in Australia. Canada’s system, which includes pre-arrival credential evaluations, has been cited as a model. “Australia could learn from these approaches,” said OECD analyst Michael Lee.
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Despite these challenges, some migrants have successfully navigated the system. Maria Gonzalez, a former architect from Spain, secured a role at a Melbourne firm after completing a 12-month internship through a government-funded program. “It took time, but now I’m contributing my expertise,” she said. Her story underscores the potential for policy reforms to create better outcomes.
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What Comes Next?
The Migration Council Australia plans to release a comprehensive policy paper in July 2026, outlining recommendations for credential recognition and employer support. Meanwhile, advocacy groups are pushing for legislative changes to simplify the process. As the debate continues, the question remains: how quickly can Australia align its systems with the needs of a globalized workforce?
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“Give us a chance to prove our value,” said a migrant worker interviewed by SBS Australia. “We’re not here to take jobs—we’re here to contribute.”
SourceSBS Australia