The skills shortage & visas – a balancing act?

While the new Graduate (subclass 485) Skilled Temporary Visa may have a ‘knock on effect’ on the wages of locals, such as hospitality workers and taxi drivers, the tourism and hospitality industry is desperate to find and keep staff – especially in WA. Universities will also feel the effects of the new visa, probably facing reduced numbers of international students. Undergraduates may find themselves competing for jobs with new graduates. What a balancing act – are there any lateral thinkers out there with different solutions?

What is a Graduate Skilled Temporary Visa?

This visa allows overseas students who have completed at least two years study in Australia to stay here for up to 18 months to gain the additional skills they need to apply for a permanent General Skilled Migration (GSM) Visa. Applicants must demonstrate at least 12 months Australian work experience.

The visa applicant must hold a degree, diploma or trade qualification from an Australian educational institution as a result of at least 2 years of full-time study while physically in Australia to qualify for this category.

FYI

In 2005-06, 12,116 overseas student graduates – mainly accountants – gained permanent residence, although 34% failed to demonstrate a competent grasp of English when tested.

From 1 September 2007

The ‘reforms’ are to ensure higher standards of English are attained by students coming to Australia to study says Minister Julie Bishop and students wanting a GSM visa will now be required to have a stronger understanding of the English language and undertake relevant work experience.

• The 11 skilled migration visa categories will be collapsed into just four;
• the 15 skilled migration visa subclasses will be collapsed into nine;
• all GSM visas will be able to be lodged through the internet;
• the English language threshold requirement for all GSM visas will increase;
• the points test will be adjusted so those with advanced Australian tertiary qualifications, Australian skilled work experience and strong English language skills will benefit.

Minister Kevin Andrews says:

“The changes would lead to better labour market outcomes for all GSM applicants and help deliver the skills Australian employers need.”

The balancing act: demographer Dr Bob Birrell’s assessment

Previous research has shown that a third to a half of overseas students study in Australia as a way of securing permanent residency. As Director of the Centre for Population and Urban Research at Monash University, Bob Birrell says the new visa will make it harder for overseas students to get permanent residency and addresses perceptions that universities are becoming ‘visa factories’ for overseas students with poor English skills.

Students will need to stay here an extra year to improve their English or gain professional trade skills before they can obtain permanent residence. So this increases the relative cost of education in Australia for those seeking permanent residence and might make some other countries more attractive.

“Many [graduates]… will be seeking entry in the hospitality, restaurant, taxi driving, generally low skilled areas where they can pick up money quickly.”

These new visa arrangements for international students could drive down wages and conditions in some industries, as up to 20% more students will have the right to work while they improve their English or trade skills, putting pressure on labour markets that are already overcrowded. Wages for waiters and taxi drivers could fall as at least 30,000 overseas students could apply each year for the new temporary visas, which do not have work restrictions.

The ‘silver lining’ for these students would be that they could stay in Australia briefly on the temporary graduate visa and pay off some of their university debt working in Australia before returning home.

Dr Birrell expects the number of overseas students enrolling in Australian universities to drop as a result of the changes. A reduction in annual university revenue will impact on the whole university system and non-international students.

Meanwhile on the ground in WA…..

You may have read the report of 17 year-old who took a job as a dishwasher at popular Perth restaurant Barocco and hours later had a new job as an apprentice chef. In WA today – with an unemployment rate of 2.7% – employers can’t afford to ‘muck around when they find good staff’. Barocco owner Michael Papotto said he saw something special in this young man. He was ”quick and fast and if you find someone good, you try to keep them.” Other tactics to keep staff:

• an extra week’s pay to employees who stay for a minimum of three months at Valentino’s Restaurant;
• the Broadwater Group, with more than 400 employees at seven resort-style hotels, offers subsidised vocational and tertiary studies worth thousands of dollars to employees.

WA Government’s new initiatives to address this skills shortage

Hospitality Magazine reports that the Australian Hotels Association, Tourism Council of WA, and Hospitality and Tourism Industry Training Council will share in about $200,000 to fund separate practical projects under the Government’s new Workforce Partnership Program.

The grants include:

• $50,000 to the Australian Hotels Association for a feasibility study to place skilled Balinese workers at sponsoring hotels for up to 12 months. A further $75,000 was potentially available to implement the study;
• $50,000 to Tourism Council of WA to promote career opportunities in the tourism industry at the Careers and Education Expo 2007 in May; and
• $15,283 to the Hospitality and Tourism Industry Training Council to develop a practical guide to workforce development.

How complex…. or should I say what a mess!