Regional migration policy in Australia: settlement and

economic outcomes

Kate Golebiowska, Charles Darwin University, Darwin, Australia

Séminaire du Réseau international de recherche sur l’immigration en

dehors des grands centresSherbrooke, le 2 juin 2009

Presentation outline1. Australia – overview2. Policy framework and management3. Definition of ‘regional Australia 4. Major drivers behind policy changes5. Why migrants choose regions?6. Who settles in regions?7. Why migrants leave regions – case of NT8. Recent regional visa statistics9. Labour market participation – case of NT10. Migrant obligations and rights11. Policy outcomes so far: settlement, labour market12. Future policy focus & academic research

!

!

!

!

!

!

!!

WA

NT

QLD

SA

NSW

VIC

TAS

ACTPERTH

SYDNEY

DARWIN

HOBART

ADELAIDE

BRISBANE

CANBERRAMELBOURNE

Australia population: 20.7m (2006)

Overseas-born: 24.6%, or approx.5m (2006)

Contribution of net overseas migration to total pop. growth: 53 % (2006)

Australia’s population density: 2.7 people per 1km2

Overseas-born in major urban areas (100,000 and over): 82% vs. 60% Australian-born (2001)

Overseas-born in rural areas: 5% vs. 12% Australian-born (2001)

Sources: ABS 2008a, 2008b, 2003, Geoscience Australia 2009.

Policy framework and management

• Immigration – constitutional domain of the Federal Government

• Regional skilled and business visas progressively introduced & modified since mid-1990s

• Policy development and visa criteria consulted with State/Territory

Governments

• Concessional criteria for skilled & business migrants intended to attract them to settle and work in regions

• no Charter of Rights & Freedoms. Temporary residence & minimum employment contracts aimed at enhancing retention in regions

Policy framework and management cont.

• Migration - federal responsibility all S/T access to same suite of visas

• Core migration criteria are federal: age, English language level, skills levels, qualifications recognition, work/business experience; business investment levels, level of employment creation, etc.

However, some tasks are delegated to S/T Governments and nominated

regional bodies

• In recognition of S/T economic variations, Governments design some own criteria (ie. determine skilled occupations in demand)

• Governments/regional bodies certify employer applications for concessional regional skilled visas (temporary & permanent) as genuine vacancies and that these offers do not undermine opportunities for Australians

Policy framework and management cont.

Stakeholders not engaged in determining migration criteria but who may contribute to migration

outcomes

• Municipalities - some community development initiatives focus on immigrant settlement & contribution, create positive image of immigrants

• Community stakeholders (may include municipalities) initiate bringing in and settling immigrants. Sporadic (but successful) in some regional towns in Victoria under reg. dispersal strategy. Focus on refugees

• Migrant settlement support agencies & other non-profit organisations respond to local needs

• Universities – can gain financially. Typically cooperate with relevant S/T Governments, make their premises available for visa info sessions, can link students with local jobs (meets migration selection criteria)

Definition of ‘regional’ Australia

RegionalNT incl. DarwinSA incl. AdelaideTAS incl. HobartVIC incl. Melbourne* ACT incl. Canberra**

All WA ex. PerthAll NSW ex. Sydney, Wollongong, NewcastleAll QLD ex. Brisbane, Gld Coast

*Melbourne, no S/T, employer nomination, family only** Canberra, no S/T nomination, family & employer only

3 major drivers of immigration policy changes since inception of regional schemes

Reason(s) Response

Non-satisfactory retention under some regional visas

2-stage visas: temporary permanent. Temporary residency and employment mandatory in regions

High # of students remaining as indpnt skilled migrants post graduation. Study courses leading to qualifications in demand (points on selection grid). Benefit from waiver of Aus. work experience.Considerable group encountering problems at labour market (English, skills)

Gradual rising of the bar: increased period of study to qualify, 2 increases of min. points to qualify.

2007- major skilled visa revamp: min. English level raised, points for quals. only with Aus. experience. Temporary visa introduced to improve English, gain work experience.

New stringent criteria affect all applicants.

Global Financial Crisis (rising unemployment, unions’ concerns about immigrants taking semi-skilled jobs)

Also ever-surfacing stories of abuses of temporary workers

In 2009 already 2 cuts to planned skilled migration 2008-09: 133,500 108,100 (mostly in independent categories)

Increased English level for all temporary trades workersMore rigid checks on employers: employing locals, formal training benchmarks being developed to measure commitment to training locals

Why migrants choose regions?

• Specific job offer (temporary & permanent workers)

• International students to obtain bonus points on skilled migration selection grid

• Personal motivations (family)

If not for concessional criteria, few migrants wouldbe going to regional Australia as their first choice of settlement

Who settles in regions?

Targeted by regional migration policy

• Skilled workers (temporary & permanent visa holders)

• Business migrants (temporary & permanent)

• Former international students (not too successful)

Federal Government decision

• Refugees – happy to go wherever can start afresh (ie. considerable number resettled in Darwin, NT)

All other personal, economic & lifestyle reasons

• All groups above

• Family migrants

Passers-by in regions

• Some skilled migrants & international students

• Seasonal workers – 2008 pilot program for selected Pacific island countries to work in horticulture. Modelled after long-standing NZ seasonal workers’ program for the Pacific islands. Temporary by design

• Working Holiday Makers – holiday visa enabling to supplement holiday funds with work. Can work in any occupation, up to 6 mths with one employer. Tend to move around because want to see the country

Why migrants leave NT?

• Better job offer elsewhere

• Partner found a job elsewhere

• Min. contract period fulfilled and now free to leave

• To join established ethnic communities in large cities (ie. Zimbabweans)

• To have the ‘large city’ lifestyle, which may include…

• Access to wider range of services in large cities

• Students tend to stay in NT after graduation

Recent growth in regional visas

Sources: Population Flows, various editions.

Chart 1. Distribution of regional visa grants, 2000-08, Australia

0

2000

4000

6000

8000

10000

12000

NSW VIC QLD SA WA TAS NT ACT

Visa

gra

nts

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

Recent growth in regional visas cont.

Sources: Population Flows, various editions.In this period, Australia has granted 126,840 regional visas (principal applicants & dependants)

Chart 2. Annual number of regional visa grants

0

5000

10000

15000

20000

25000

30000

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Vis

a gr

ants

Regional migrants as proportion of all arrivals & onshore visa grants

Chart 3. Percentage contribution of regional migrants to

settler arrivals & permanent additions, Australia 2000-08.

3.6 4.7 6.3 8.6 11.2 15.3 13.5 12.70.0

20.0

40.0

60.0

80.0

100.0

120.0

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

% se

ttler

arr

ival

s and

per

man

ent a

dditi

ons (

PAs s

ince

20

02-0

3)

All other settlerarrivals &perm.additions

Regional visagrants

Sources: Immigration Updates and Population Flows – various editions.

Labour market participation – skilled migrants & students in NT

• Skilled migrants – highly-skilled & trades positions (doctors, chefs, car mechanics, etc.)

• Some with highly-skilled qualifications not fully recognised in Australia and working at associate level positions

• Students – p/t jobs in services

• Post-graduation student employment – professional positions, few business owners/managers. No authoritative research to quote for all Australia.

Labour market participation – business migrants, refugees & WHMs in NT

• Business migrants – export to SE Asia, some serve local market. Fragmented statistics, difficult to obtain all-regional Australia picture

• Obliged to create/maintain employment for Australians. # of positions depends on size of business. Ranges between 2-30+

• Recent refugee arrivals typically unemployed – regardless of formal qualifications

• WHMs – skilled/trades positions if qualifications recognised. Also in hospitality, tourism, etc.

Labour market participation of all overseas-born in NT

• Have higher labour market participation rate than Australian-born 75% vs. 67%

• Major industries of employment: health& comm. services (16%), property & business services (13%), gov. adm.& defence (12%), retail trade (12%), accomm., cafes & restaurants (11%)

• Possible underemployment given their formal qualifications

- 47% qualified as professionals but 28% employed inprofessional positions;

- overall, 42% employed in lower-skilled occupations vs. 17% formally qualified to do so

Sources: ABS 2006 Census unpublished statistics, DIAC unpublished statistics on occupations of permanent additions.

Obligations and rights – regional and independent skilled & business migrants

Temporary visas Permanent visas

Min. residency & employment in region

yes for regional visa holders

Can relocate before regional ‘contract’ & residency end

yes, if relevant authorities approve

Pay taxes yes

Contribute to retirement savings (subtracted from salary)

yes

Can use Medicare no (private health insurance)

yes

Access to welfare benefits (if laid off etc.)

no no for first 2 years

Can vote in S/T, federal elections no

Can buy property if Federal Government approves

yes

International school/student fees if study (typically applies to dependants)

yes, but S/T can waive

Policy outcomes so far – settlement

• Growth in regional visa numbers until 2005-06, then levelled off

• Regional settlement of international students largely unsuccessful. Until 2007 most remained as skilled independent migrants

• Regional migrants prefer metro areas – hence highest visa numbers in VIC, SA

• High visa numbers disguise settlement in metro areas

• Stringent migration criteria (2007) and government response to GFC may tame future visa growth

• Migrant outflows from regions occurs

Policy outcomes so far – labour market

• Immigrants in regions may have higher labour market participation rate than Australian-born

• Skilled migrants usually employed in professional & trades occupations

• But some may be underemployed

• Business migrants engaged in exports

• Although skilled & business migrants make economic contribution to regions, their absolute numbers too low for any major scale impact

• Policy benefits individual employers and job seekers

(Possible) future policy focus & academic research

• Retention under 2-stage visas, how it can be improved

• More community engagement in attraction & improving retention (opportunity for case studies in the future)

• Labour market participation of regional migrants

• Settlement patterns & economic outcomes of int’l students under stringent entry criteria

• Can regional universities play a greater role in students’ attraction & retention?

• Lessons drawing from other countries

Fot.J.Nowakowska