By: Santosh Jatrana, a demographer and social epidemiologist at the Alfred Deakin Institute for Citizenship and Globalisation.
Immigration is often unfairly blamed for many of the ills that plague Australia — from job shortages and low wage growth through to increased pressure on public services and the housing crisis.
In a nation founded as a nation of migrants, immigration remains contentious, has been an obvious election issue and is often depicted negatively in the media.
These narratives usually ignore the broad benefits migrants bring to Australia, including significant economic and demographic contributions.
More importantly, those narratives virtually ignore the challenges — and often career compromises — that migrants have to accept to make those contributions.
Immigrants don’t disadvantage native-born workers. Instead, migrants have to deal with skill mismatches, occupational downgrading and discrimination.
The jobs reality
Securing employment that matches their qualifications and experience is one of the most persistent challenges for migrants.
Skill-occupation mismatch occurs when the qualifications of selected immigrants do not align with the job opportunities in the host country. This mismatch leads them to take lower-skilled positions than their training would suggest.
Studies across high-income countries that include Australia, Canada and the US consistently show skilled migrants frequently end up in jobs far below their expertise level.
It often happens because of a lack of foreign qualifications, a lack of local work experience and language barriers.
An example might be a migrant doctor from the Philippines who works as a caregiver or taxi driver because overseas credentials are not recognised. Similarly, an engineer from India might struggle to find work in their field and instead take up employment in retail or hospitality.
Many migrants remain underemployed for extended periods, preventing them from utilising their full potential in the labour market.
The displacement myth
Research consistently shows that migration does not result in widespread job displacement for native-born workers. Instead, it stimulates economic activity, enhances demand for goods and services and ultimately creates more jobs.
Migrants often fill labour shortages in industries that struggle to attract local workers such as healthcare, aged care, technology and engineering. These areas have traditionally depended on skilled migration to address workforce gaps.
Some industries would find it difficult to operate without immigrants and migrants frequently complement rather than compete with local workers, occupying different sectors or skill levels within the economy.
Countering an ageing population
Immigration also plays a critical role in mitigating the effects of an ageing population.
Many developed nations are experiencing declining birth rates and increasing life expectancy, leading to a growing proportion of the elderly.
A decline in working-age individuals can lead to economic stagnation, shrinking tax bases and increased pressure on pensions and healthcare.
Research on the role of immigration in addressing ageing demographics has concluded that while immigration alone cannot entirely halt the population ageing process, it helps sustain population growth and moderates the pace at which the population ages.
Younger migrants entering the workforce boost tax revenue, support pension systems and help alleviate labour shortages in essential sectors.
Modelling the impact under a range of net overseas migration scenarios shows the potential impact on the proportion of Australia’s population aged 65 years or over in the next 50 years.
360info Chart. 360info/Michael Joiner and Suzannah Lyons
360info Chart. 360info/Michael Joiner and Suzannah Lyons
Higher net migration slows the overall ageing of the population, but it is inevitable under any plausible scenario.
The effect of higher net overseas migration is obviously much higher population growth so there is a trade-off between slowing the ageing population and maintaining a growth rate that matches the country’s ability to increase infrastructure and services.
Originally published under Creative Commons by 360info™.
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