The latest report from Grattan Institute, Graduates in limbo: International student visa pathways after graduation, has highlighted the struggles of many of Australia’s international graduates in gaining permanent residency and pursuing their chosen career paths.

“Encouraging so many international graduates to stay and struggle in Australia is in no one’s interests,” said Brendan Coates, lead author of the report and economic policy program director at Grattan Institute.

“It erodes public trust in our migration program. It hurts the long-term prospects of those graduates who do stay permanently,” he continued.

“It’s unfair to those graduates who invest years in Australia with little prospect of securing permanent residency. And it adds to population pressures in areas like housing.”

The research by the Melbourne-based think tank highlighted that only half of the country’s international students go on to secure full-time employment, adding that most work in low-skilled jobs – and half earn less than $53,300 a year.

It stated that many international graduates are stuck in “visa limbo” with less than one third of temporary graduate visa-holders transitioning to permanent residency when their visa expires, a figure that is down from two thirds in 2014.

One in three graduates return to further study – mostly in cheaper vocational courses – to prolong their stay in Australia, the report explained.

Temporary graduate visa-holders in Australia are projected to double to about 370,000 by 2030, as laid out in the report, and there are concerns that this could leave more graduates stuck in “visa limbo”, worsening their chances of securing permanent residency and adding further pressures the housing market.

The report is, as such, calling on the government to implement a number of measures;

• Cut the duration of post-study work visas for international graduates.
• Raise the English language requirement for temporary graduate visa-holders
• Limit temporary graduate visas to people younger than 35 (down from 50 now)
• Scrap visa extensions for graduates with degrees in nominated areas of shortage, and for graduates who live and work in the regions
• Only offer visa extensions to graduates who earn at least $70,000 a year
• Create a new ‘Exceptionally Talented Graduate’ visa which offers a direct path to permanent residency for the most talented international graduates
• Offer more help to international graduates who do stay to pursue their careers in Australia

“These reforms would cut the number of graduates we leave in limbo, while ensuring Australia continues to attract the best international students and help the best graduates to stay,” said Coates.

Rob Lawrence, director at Prospect Research and Marketing, shared his thoughts on the matter with The PIE.

“PSWR is available, and many international students do acquire permanent employment,” said Lawrence.

“But equally, it is an outcome that requires investment in time to build capabilities and experiences, and a depth understanding of the approach needed to become noticed. The question is how is it sold… as an avenue to a job, or something which you have to work hard at.”

“Encouraging so many international graduates to stay and struggle in Australia is in no one’s interests”

Lawrence highlighted that not all students are adequately engaged in areas designed to enable outcomes – careers, extra-curriculars and internships as examples.

He noted that many international students come from families whose finances and businesses were disrupted during the pandemic, and are reliant upon part-time work which occupies their time and priorities.

“Too often they engage with careers too late in the day, and are simply not adequately prepared to undertake the graduate application and screening processes which lead to permanent employment.

“Very few international students start the process a year before they graduate, with many expecting to apply once they complete their studies,” said Lawrence.

“With a race to secure top education talent, we have seen all large destination countries use post-study work rights as a significant lever to attract these students,” Jon Chew, global head of insights and analytics at Navitas, told The PIE – noting that Australia has “pulled ahead” of the UK, Canada and the US in this regard.

“What is critical as part of this process, and as numbers grow, that we maintain a focus on quality and the Grattan team are right to focus this gap in quality.

“With the increase in the number of temporary graduate visa holders, and the mixed experience and outcomes that some of these students have, it is critical that the PSWR maintain it’s original intention of being a career-enhancing part of their education journey.

“Equally, if a student does have a poor experience and chooses to leave after completion of a degree, Australia does not benefit from the full productivity and participation benefits of this young, well-educated, globally competent and highly motivated cohort of graduates,” added Chew.