Official figures are quite surprising! Since the start of the COVID-19 pandemic, some 480,000 Australians who were abroad have returned home with their talents. What does this mean for expatriates in Australia and foreign professionals who are looking to relocate there?
According to the Australian Department of Foreign Affairs, as of last week, some 36,206 Australians who are currently abroad are still waiting for their return to Australia. Of these, 4,860 are considered vulnerable. Not to mention the growing number of Australians who are still registering for a possible return. But what does this mean for the Australian job market? And what about foreign professionals who are still applying for work visas?
A drop in the unemployment rate
In February, the unemployment rate in Australia dropped from 6.3% to 5.8%, which is rather surprising, given the current global economic downturn. So it's clear that Australia is set to restore its fragile economy. In February 2021, some 88,700 people had joined the Australian labour market after several months of uncertainty. According to the Australian Central Bureau of Statistics, there's only a difference of 1,800 between the period before and during the crisis, which is rather encouraging! Excluding foreign professionals and entrepreneurs, this country of more than 25 million inhabitants currently has an active workforce of more than 13 million employees. Besides, women have not been left out. Some 69,000 women have been hired in recent months.
However, the JobKeeper program set up by the Australian government to support the labour market is coming to an end. Will the Australian labour market be able to keep up the pace? According to a study by Robert Half, 70% of employers in Australia are looking to retain their talent this year by raising salaries. Some 82% of Australian companies are concerned about the impact of the crisis on their skilled workforce since there are restrictions on the hiring of foreign talent. More than half of them are also introducing non-financial benefits, such as flexible hours, health insurance, or even hybrid working hours, to motivate and retain their top talent.
Skills shortage in several sectors
Recruiters and labour market experts believe that the Australian job market still needs foreign talent despite the brain gain in recent months. The Australian government updates its skills shortage list regularly, and many skills, including veterinarians, academics, world-renowned professionals, artists, athletes, chefs or restaurant managers, etc., are still hard to find locally. Hence the importance of hiring foreign labour for several sectors. In fact, foreign professionals, especially those who have prior work experience overseas, are considered real assets for companies.
Last week, members of the Australian parliament insisted on the significant contribution of foreign talent to the Australian economy. Besides, the Joint Federal Committee on Migration report recommends that the government relax restrictions forcing Australian companies to prioritise Australians in recruitment policies. This report also recommends that seats be reserved on flights and in quarantine centres for skilled foreign professionals. On the other hand, it's likely that Australian companies, regardless of the size, will no longer have to advertise jobs locally before hiring global talent.
The importance of foreign talent for economic recovery
Less foreign professionals have joined the Australian labour market since the start of the crisis, given borders closures and travel restrictions. This year, there were nearly 500,000 fewer skilled visa holders compared to the same period last year. However, the government is implementing a new strategy to allow temporary visa holders to return to Australia in the coming months. Note that this strategy will also include international students and visitors to promote the revival of different sector.
Higher education and tourism are key drivers of the Australian economy in terms of income. In some states, such as New South Wales, higher education is the largest employer with thousands of employees and their families depending on it. A recent survey by the Quality Indicators for Learning and Teaching (QILT) shows that thousands of international students who are learning remotely since the start of the pandemic are impatiently waiting to return to Australia to continue their studies in better conditions.
Therefore, the Australian government intends to accelerate its COVID-19 vaccination program so that international borders can reopen soon and in optimal conditions.
Encouraging foreign investment
Foreign investment is another way that the Australian government is exploring to revive its economy. Since September 1, 2020, foreign investors who invest at least $ 5 million in Australia are prioritised. In fact, they are eligible for permanent residence in Australia. Foreigners willing to invest at least $ 1.5 million, and applicants under the Business Innovation and Investment Program (BIIP) visa, are also prioritised. According to official figures, foreign investment has contributed around 1.3 billion dollars to the Australian economy during the past year. This is why the annual cap of investor visas doubled from 6,800 to 13,500 from 2019 to 2021. It's worth noting that most investments were made in the Australian real estate market in recent months.
