Australia must reform its Migration Program to meet pressing labour shortages and sustain long-term economic growth, according to experts from The Australian National University (ANU).
On 2 September the Australian Government announced key details of its 2025-26 Migration Program .
ANU Professor Alan Gamlen said fundamental problems need to be addressed.
"Temporary migrants, such as students, graduates, and working holiday makers, now drive most skilled workforce growth," he said.
"But current migration policy fails to recognise the pivotal role of this group of migrants.
"Backpackers, for example, are widely perceived as engaging only in hospitality or farm labour, yet many also work in skilled roles. The misreading of students and working holiday makers obscures their actual contribution to Australia's skilled workforce."
Professor Gamlen argues the current program contributes very little to facilitating a steady pipeline of skilled workers into the country.
"Although the allocation for permanent migration is formally capped at 185,000 per year, only 12 per cent of those places go to offshore skilled entrants, with a large proportion of places taken up by partners and children or family migrants," he said.
"This leaves too few places for other groups of people, such as those on employer-sponsored visas. Demand for employer-sponsored visas is surging, and this group consistently delivers the strongest labour market outcomes. But their numbers are constrained, creating a structural imbalance."
According to Professor Gamlen and his ANU co-author, Emeritus Professor Peter McDonald, redefining the Migration Program to focus on Skilled Stream applicants would restore employer confidence, while creating clearer pathways from temporary to permanent skilled work.
"This shift would ensure that Australia's migration policy responds more effectively to the country's long-term workforce and demographic challenges," Professor Gamlen said.
"We recognise that our proposals would involve resourcing challenges and that change can take time. But we need to get this right to make sure Australia's migration policy is better serving the country's economic and social objectives."
You can find more information about the work of the Migration Hub at migration.anu.edu.au .
