Skilled foreign workers meeting shortage

Tuesday 22 July 2008

The Minister for Immigration and Citizenship, Senator Chris Evans today released new data showing a 27 per cent increase in the temporary skilled migration (subclass 457 visa) program for 2007-08.

Senator Evans said the increase in the subclass 457 visa grants highlighted the importance of the program in delivering skilled labour to employers across a wide range of professions and industries.

In total, 110 570 visas were granted to temporary skilled workers and their dependents in 2007-08 compared to 87 310 in 2006-07. The number of primary visa holders jumped 24 per cent in 2007-08 to a record 58 050 compared to 46 680 in the 2006-07 program.

The 2007-08 report on the subclass 457 visa program also reveals:

New South Wales was the biggest user with a total of 20 480 primary visa grants
Western Australia is now the second biggest user with a total of 11 800 primary grants – a 41 per cent rise on last financial year, the largest increase in Australia
81 per cent of 457 visa holders were employed in professional occupations and highly skilled jobs
computing professionals, registered nurses, and business and information professionals were the top three listed occupations for temporary overseas workers
nearly a quarter of the workers came from the United Kingdom, followed by India (14 per cent), the Philippines (9 per cent), South Africa (6 per cent) China (6 per cent) and the USA (6 per cent)
the average nominated base salary was $73 100 – up two per cent from last year
nearly 25 000 subclass 457 visa holders became permanent residents, up 30 per cent on the previous year.

The subclass 457 visa enables employers to employ skilled overseas workers to fill nominated positions in Australia for a period of between three months and four years.

Senator Evans said that the uncapped scheme is demand driven and proving vital to ease the national skills shortage at a time when the unemployment rate is low.

However, the Minister added that the program is not a cheap labour scheme and the Rudd Government will not tolerate the exploitation of foreign workers.

‘Although incidents of migrant worker exploitation are the exception rather than the rule, the Government is moving to improve the protections in place to prevent exploitation of temporary skilled workers from overseas,’ Senator Evans said.

‘Minimum Salary Levels for subclass 457 visa holders will increase by 3.8 per cent from August 1 after remaining frozen for more than two years.

‘The Government will also introduce new laws to help prevent the exploitation of migrant workers and ensure the wages and conditions of Australian workers are not undercut.’

A Bill to amend the Migration Act (1958) is planned for September and it is proposed that a range of measures be introduced, including:

Expanded powers to monitor and investigate non-compliance with the 457 visa scheme
A framework for punitive penalties for employers found to be in breach of their sponsorship obligations
Improved information sharing between government agencies (including the Australian Taxation Office) to ensure compliance
A redefined sponsorship obligations framework for employers of 457 visa workers and a range of other temporary work visas.

In addition, industrial relations expert Barbara Deegan is currently examining the adequacy of measures to protect 457 visa holders from exploitation and in order to improve the integrity of the 457 scheme.

Ms Deegan is examining Minimum Salary Level provisions, English language requirements, health and safety protections, training requirements, and the opportunities for Labour Agreements to play a greater role in the program.

Senator Evans said the 457 data for 2007-08 will be updated and made publicly available each month on the department’s website.

The full 457 state and territory summary report for 2007-08 is available at: www.immi.gov.au/media/statistics/statistical-info/temp-entrants/subclass-457.htm

See:
Index of Media Releases

URL: http://www.minister.immi.gov.au /media/media-releases/2008/ce08068.htm
Last update: 13 August 2008 at 17:14 AEST