Monday 4 February 2013

Australia sees fall in applications for skilled migration 457 visas

Employer demand for the temporary skilled migration subclass 457 visas, one of the most popular routes for employing overseas workers, has decreased in the last six months, new data reveals. From July to November 2012, the number of applications fell by 4%, while the number of visas approved also fell by 12% over the same period.

The latest monthly report from the Department of Immigration and Citizenship’s (DIAC) indicated that the decline has been developing since June last year and has been falling for the last three months in a row. ‘Reinforcing this trend has been a drop in actual 457 visa grants since August. This movement demonstrates the 457 visa program’s responsiveness to the changing needs of the Australian economy,’ said a DIAC spokesman.

There has been a lot of debate in Australia about the jobs market and growing calls for Australians to be offered jobs first before they go to foreign workers. ‘While the subclass 457 visa stock figure is still high, new take up of the programme is declining, particularly in the construction and mining industries that have driven much of the recent growth,’ the spokesman explained.

‘Use of the programme has fallen across a number of industries that have traditionally been among some of the other big users of the programme including health care and social assistance, information media and telecommunications,’ he added.

In the 2012/2013 programme year to November, 3,900 applications were lodged in construction, a fall of 3% from the same period last year. A similar trend is evident in mining where 2,400 applications were lodged, an 11% per cent fall. The subclass 457 visa programme is uncapped, demand driven and designed to respond to the needs of the Australian economy, the spokesman added.

The figures also show that Western Australia is now the second largest user of the programme in 2012/2013 after New South Wales. ‘This reflects Western Australia’s strong labour market and shows the 457 programme’s responsiveness to the needs of the economy,’ he said.

While trade occupations have grown, the programme remains concentrated on highly skilled managers and professionals. For example, of those 457 visa holders who were in Australia on 30 November 2012, some 64% were working in occupations that typically require a bachelor degree or higher qualification.

    Quote from AustraliaForum.com : “Been offered a job and the company are in the process of sorting out the visa etc. I have a question or two that I would like some help/advice on if possible. 1. If I enter before my visa is approved (using my current holiday visa) would I need to exit and then re enter in order to activate the visa or could the visa be activated whilst in the Country ? 2. Is there a difference in the time it can take for a visa applied for in Australia or applied in the UK ?”"

The DIAC said that remuneration levels also demonstrate how successful the programme is in targeting highly skilled workers. Average total remuneration of those 457 visa holders granted visas this programme year to the end of November was $89,800. Managers and professionals, who together accounted for 66% of the total number of visas approved this programme year, had combined average total remuneration of $109,000. But the DIAC denied that the programme undermines employment and training opportunities for Australia and said that changes introduced in 2009 addressed these concerns.

‘As a result of these changes, all employers seeking to sponsor foreign workers on subclass 457 visas are now required to make a measurable contribution to training Australians by meeting one of two training benchmarks. They must also attest, in writing, to having a strong commitment to employing local labour and non-discriminatory employment practices,’ the spokesman pointed out. ‘Potentially vulnerable applicants working in trade occupations are required to meet English language requirements, and may be required to have their skills formally assessed. DIAC has also made it easier for visa holders to change sponsors, reducing the risk of their being bonded to an employer,’ he said.

‘Sponsors are also obliged to provide their overseas workers with terms and conditions of employment no less favourable than those provided to Australians, including paying them the market salary rate. This obligation is backed up by the Worker Protection Act, which enables DIAC to effectively monitor sponsors, and to take appropriate action against those found to be exploiting foreign workers,’ he added.

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