Labour Market Testing

Employers must provide documentary evidence of having tested the labour market before lodging a sponsorship application.

Labour market testing is the process of advertising a position in Australia to try and fill a vacancy with an appropriately skilled Australian citizen or Australian permanent resident.

The labour market testing must be done in the six (6) months immediately before the application is lodged.

Note: Labour market testing is not required if any of the following conditions apply:

• the position is for senior academic/research staff
• the position forms part of a labour agreement
• the stay is for less than three (3) months.
  Note: Limited labour market testing will be required for stays of between three (3) and 12 months including a statement that the position was at least advertised locally, and evidence of this may be requested. Full labour market testing must be conducted for stays over 12 months, unless the above exceptions apply.

Conducting labour market testing

If labour market testing is required, the employer must:

• list the vacancy with a job placement provider for national listing, for at least four (4) weeks in the eight (8) weeks before lodging the application
  or
• obtain a waiver of this requirement from a job placement provider.

In addition the employer must do one of the following:

• advertise the vacancy in a Saturday and a weekday edition of a metropolitan and a national daily newspaper - a total of four (4) separate advertisements
• if the business or organisation is outside a major metropolitan area, advertise the vacancy in a Saturday edition and a weekday edition of a major local or regional newspaper and a national daily newspaper - a total of four (4) separate advertisements
• advertise in professional or trade journals, local community language newspapers, or on the internet. Vacancies on the internet should be advertised on specialist employment placement and recruitment websites.

Advertisements for a vacancy must:

• accurately reflect the duties, salary and any other benefits. The proposed salary must reflect current Australian market rates
• be advertised to attract the best possible response
• describe the position in a way that does not discourage Australian citizens or Australian permanent residents from applying for the position.

Evidence of labour market testing

Where labour market testing is required, the employer must include the following with their sponsorship application:

• the original job advertisements
• details of all local applicants, including if they are Australian citizens or Australian permanent residents and the reason why they are not suitable.