Fact Sheet 14 - Migrant Labour Market Outcomes
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The successful settlement of migrants can in part be judged by their employment experience. Two key indicators of this experience are labour force participation and unemployment rates.
Migrant success in the labour market is important for the economy. Greater labour market success means a larger contribution to Commonwealth and State/Territory Budgets and the standard of living for all Australians
Tracking migrant labour market experiences
The Department of Immigration and Citizenship has tracked the labour market experiences of migrants through a number of surveys. These include the Longitudinal Survey of Immigrants to Australia (LSIA), a survey of Skilled Designated Area sponsored (SDAS) visa holders and Regional Sponsored Migration Scheme (RSMS), and a longitudinal survey of Skilled Independent Regional (SIR) visa holders in Australia.
There have been three LSIA surveys conducted on three different cohorts of migrants. The first cohort (LSIA1) arrived in Australia between September 1993 and August 1995 and was interviewed three times. The second cohort (LSIA2) arrived between September 1999 and August 2000, and was interviewed twice. The third cohort comprised offshore migrants who arrived between December 2004 and March 2005 and onshore migrants who were granted their visa in this same period; and was surveyed twice. The student survey was conducted in early 2004, the SDAS and RSMS surveys in mid-2004 and the SIR survey between 2005 and 2007.
Currently the LSIA is the main source of information about migrant labour market outcomes. There is however a new survey - The Continuous Survey of Australia's Migrants that will be conducted from late 2009. This new survey will provide more up to date and regular information than the LSIA.
Labour market outcomes of more recent migrants
In this section the discussion on labour market outcomes is based on LSIA 3 the most recent of the Department's longitudinal surveys.
LSIA3 migrants had significantly better labour market outcomes than LSIA2 migrants. For example, after 18 months the unemployment rate of LSIA3 Family and Skill Stream migrants was less than half (4 per cent compared to 10 per cent) the unemployment rate for Family and Skill Stream migrants from LSIA2 at the same stage. This fall far exceeds the overall national fall in unemployment (from 6.8 per cent to 4.8 per cent) over the relevant period. The fall in unemployment rate for Skilled Stream migrants was from 6 per cent to 35 and for Family Stream migrants it was 6 per cent compared to 13 per cent at 18 months after arrival.
LSIA3 migrants also had a higher participation rate than LSIA2 migrants. For example, after 18 months, 80 per cent of LSIA3 migrants were participating in the labour market compared with just 74 per cent in LSIA2.
The LSIA3 labour outcome results supported the earlier analysis that had found the ability of migrants to find work quickly hinged on four main factors - their level of skill, English language proficiency, age and period of residence in Australia.
Participation Rates
Analysis of LSIA data shows that participation rates vary according to migration category. The following table summarises the participation rates of LSIA3 migrants by category six and 18 months after arrival.
| LSIA3 Participation Rates - Principal Applicants | ||
|---|---|---|
| Migrant Categories | Six months after arrival/grant of visa (wave 1) | 18 months after arrival/grant of visa (wave 2) |
| Skill Stream | ||
| Business skills/ENS/RSMS | 97% | 96% |
| Concessional Family/SAL | 86% | 88% |
| Former Overseas Student | 93% | 95% |
| Offshore Independent | 92% | 93% |
| Family | 75% | 70% |
Notes:
ENS – Employer Nomination Scheme
RSMS – Regional Sponsored Migration Scheme
SAL – Skilled Australian Linked
As can be seen, all categories of Skill Stream migrants have labour force participation rates well above the Australian average of about 65 per cent at the time of the survey.
Family Stream migrants also have participation rates comparable to the National average.
Unemployment rates
Analysis of LSIA data shows that unemployment rates also vary according to migration category.
The following table summarises the unemployment rate of LSIA3 migrants by
category six and 18 months after arrival in Australia.
| LSIA3 Unemployment Rates - Principal Applicants | ||
|---|---|---|
| Migrant Categories | Six months after arrival | 18 months after arrival |
| Business skills/ENS/RSMS | 3% | 1% |
| Concessional Family/SAL | 16% | 4% |
| Former Overseas Student | 9% | 3% |
| Offshore Independent | 11% | 2% |
| Family | 20% | 6% |
Notes:
ENS – Employer Nomination Scheme
RSMS – Regional Sponsored Migration Scheme
SAL – Skilled Australian Linked
As can be seen, by the 18 month stage Skill Stream unemployment rates are mostly below the Australian average.
Factors affecting the labour market outcomes of migrants
Skill level
Migrants who enter under the Skill Stream tend to be highly skilled and qualified and therefore are more likely to be both in the labour-force and employed.
English language proficiency
English language skills play a vital role in a migrant's search for work. The table below, summarising data from the LSIA3, matches the employment status of migrants at six and 18 months after arrival with their self-assessed English language ability.
Age
As with all job seekers, age is an important determinant in obtaining employment.
For example, LSIA2 data show that 18 months after arrival, migrants aged 45 years and over experience unemployment rates almost twice (13 per cent compared to 7 per cent) that of the younger cohort (25-34 years)
A snapshot of historical LSIA data is available.
See: Attachment
A
Period of residence
Another important factor influencing the labour market status of migrants is their period of residence.
As a general rule, unemployment rates are relatively high initially for most migrant groups, but they fall substantially with increased duration of residence. These initially high rates of unemployment partly reflect the difficulties experienced by all new entrants to a labour market, including school leavers.
Over two-thirds (68 per cent) of migrants who have arrived in the last ten years were employed in November 2007, compared to 66 per cent for people born in Australia (Source: ABS 6250.0).
Occupation
In recent years the overall skill level of migrants entering Australia has been increasing.
The top ten occupations of skilled migrants are computing/IT professionals, accountants, general managers, registered nurses, marketing and advertising professionals, school teachers, sales and service workers, building and engineering professionals, and electrical engineers.
Other categories of skilled entrants
Apart from permanent migrants, significant numbers of long-term temporary entrants are employed in Australia. Temporary business entrants, working holiday and students all contribute to the supply of labour.
More Information
Additional information on Skilled Migration can be found in Fact Sheets 24, 25, 26 and 27.
Information on Family Migration can be found in the Family Stream Fact Sheets 29-30.
See: Fact Sheet Index
Attachment A: Historical Data on Labour Market Outcomes
Below are tabled results from the second Longitudinal Survey of Immigrants to Australia: LSIA2 (1999 to 2000 arrivals).
Unemployment rates (LSIA2)
The figures below show the labour market participation of migrants in the LSIA2 group, at six and 18 months after arrival.
| LSIA2 Unemployment Rates - Principal Applicants | |||
|---|---|---|---|
| Migrant Categories | Six months after arrival | 18 months after arrival | |
| Skill Stream | |||
| Business skills | 8% | 0% | |
| ENS | 0% | 0% | |
| Independent | 8% | 7% | |
| SAL | 21% | 6% | |
| Other Streams | |||
| Family | 22% | 13% | |
| Humanitarian | 71% | 43% | |
Notes:
ENS – Employer Nomination Scheme
SAL – Skilled Australian Linked
Labour Market Participation (LSIA2)
The following table summaries the participation rates of LSIA2 migrants by category six and 18 months after arrival.
| LSIA2 Participation Rates - Principal Applicants | |||
|---|---|---|---|
| Migrant Categories | Six months after arrival | 18 months after arrival | |
| Skill Stream | |||
| Business skills | 54% | 80% | |
| ENS | 99% | 100% | |
| Independent | 89% | 92% | |
| SAL | 85% | 87% | |
| Other Streams | |||
| Family | 53% | 62% | |
| Humanitarian | 18% | 32% | |
Notes:
ENS – Employer Nomination Scheme
SAL – Skilled Australian Linked
Unemployment rates and English skills (LSIA2)
The table below summarises data from the LSIA2, matching the employment status of migrants with their own assessment of their English language skills (on arrival) at six and 18 months after arrival in Australia.
| LSIA2 English Proficiency and Unemployment | ||
|---|---|---|
| English Speaking Ability immediately after arrival | Unemployment rate six months after arrival | Unemployment rate 18 months after arrival |
| English 1st language | 14% | 4% |
| Very well | 16% | 7% |
| Well | 18% | 11% |
| Not well | 33% | 26% |
| Not at all | 16% | 25% |
Further information is available on the department's web site.
See: www.immi.gov.au
The department also operates a national telephone service inquiry line.
Telephone: 131 881
Hours of operation: Monday to Friday from 9 am to 4 pm (recorded information available outside these hours) for the cost of a local call anywhere in Australia.
Fact Sheet 14, produced by the National Communications Branch, Department of Immigration and Citizenship.
Last Reviewed 19 August 2009.
© Commonwealth of Australia 2009.