Fixing broken skills recognition system would put Australia on a productivity fast track

New economic modelling shows enabling underutilised migrants to work in their regulated profession could deliver an average annual productivity boost of $42,580 per worker impacted, putting Australia on the ‘productivity fast track’.

The modelling by Precision Economics, commissioned by the Activate Australia’s Skills campaign, also shows doing so would boost industries suffering from chronic skill shortages, enabling up to 20,000 teachers, 50,000 engineers, 16,000 nurses, 5,000 psychologists and 1,320 electricians to quickly get to work.

Precision Economics’ work shows that:

• One-third of all occupations in Australia are in shortage, and two-thirds of these are in regulated or semi-regulated professions.
• Around 253,000 permanent migrants in Australia with qualifications in regulated professions are working below their skill level, despite chronic skills shortages.
• Enabling underutilised migrants to work in their regulated professions would deliver an average productivity boost of $42,580 per worker each year.
• If underutilised migrants worked in their fields, it would substantially reduce shortages in critical services and industries. Australia would benefit from adding up to 20,000 teachers, 50,000 engineers, 16,000 nurses, 5,000 psychologists and 1,320 electricians.
• Harnessing the skills of this untapped workforce would reduce class sizes, shorten waiting lists and improve services, with additional nursing staff alone enabling care for 22,800 additional hospital patients.

CEO of campaign convenor SSI, Violet Roumelioitis said the modelling builds on the consensus for overseas skills recognition reform achieved at last week’s Economic Reform Roundtable.

“This is yet more evidence of the significant benefits available for all Australians if we make our overseas skills recognition system faster and fairer,” Ms Roumelioitis said.

“Right now, there are more than 250,000 permanent migrants here in Australia who have skills and qualifications in regulated professions, most of which have severe workforce shortages.

“But Australia’s complex, overly bureaucratic and expensive overseas skills recognition system means they are working in jobs below their skill and qualification level.

“We need skilled workers for our future to tackle stagnating productivity, care for an ageing population, move through the energy transition and stay healthy.

“Enabling more people to fully participate in the economy would result in fewer skills shortages, shorter waiting lists, better services and a more productive nation.

“This modelling shows the industries that would benefit from the most additional workers would be professional services, education and healthcare – areas with key shortages.

“By making fixing the system for recognising overseas skills and qualifications, we can put Australia on the productivity fast track,” Ms Roumelioitis said.

The Activate Australia’s Skills campaign is calling for four practical solutions to reform skills recognition and boost national productivity:

• Establish one national governance system for all overseas skills and qualifications recognition, including an Ombudsman with regulatory power to provide independent oversight and transparency.
• Create a more joined-up system that links skills recognition for migration purposes with licensing and accreditation for employment purposes. 
• Provide financial support for individuals to remove cost barriers and an online portal with all the information so people know what they need to do. 
• Set up Migrant Employment Pathway Hubs, or career gateways, with skills recognition navigators to get qualified people working in their professions again.

The campaign is supported by more than 100 organisations across business, unions, community organisations and civil society.

ENDS

Precision Economics Report ‘The Productivity Fastrack’ is attached.

Violet Roumeliotis will join Grattan Institute CEO Dr Aruna Sathanapally, ACTU Assistant Secretary Liam O’Brien, Master Builders Australia’s National Director of Industry Policy, Alex Waldren, and ACOSS CEO Cassandra Goldie at a joint press conference at 10am, Thursday 28 August, Mural Hall, Australian Parliament House.