Do overseas students negatively impact the availability of local jobs in Australia? Anton Crace checks the facts.

There are now more international students in Australia than ever before, as the $34.9 billion sector continues to grow and expand.

As numbers increase, it’s hard not to notice that more international students are choosing to take up their work rights, either part-time during their studies or full-time as a graduate.

While not every international student will work – and most can’t, or won’t – this growth has led to some concerns that overseas students are negatively impacting the availability of local jobs.

But what is the actual number of international students who take up their work rights, and is it possible they’re actually creating jobs?

What work can international students do while studying?

Student visa holders have access to work during and after their studies.

While studying, most students can work up to 40 hours per fortnight while their course is in session. This is extended to unlimited hours during break periods, which enables them to gain work experience and supplemental income.

Upon graduation, students can access work through the temporary graduate visa (subclass 485) in one of two distinct streams: graduate work and post-study work.

The post-study work stream, the more popular of the two, allows graduates to work in any field for up to four years, independent of their field of education or Australia’s skills shortages.

Students must have studied in Australia for at least two years and duration depends on course level: Bachelor degree – two years, Master degree – three years, PhD – four years.

The graduate work stream, meanwhile, provides 18 months work for those who have skills identified on the Medium and Long-Term Strategic Skills List.

Graduates can also access work through other visa subclasses, such as the temporary skill shortage visa (subclass 482), which replaced the former temporary work visa (subclass 457) in March 2018.

The international education sector supports more than 240,000 jobs … by comparison, the Minerals Council of Australia estimates coal, which is Australia’s largest export, supported 170,000 jobs in 2018.

International students are creating jobs

Henry Sherrell, a researcher specialising in migration, concluded that one in three international students undertook some type of work, based on analysis of the 2011 census. Using his estimation, there are currently about 213,300 international students.

An under-highlighted factor of international education, however, is the number of jobs it supports. In 2017, the sector created more than 240,000 jobs, a figure that has increased year on year, more or less in line with the overall growth in student numbers.

By comparison, the Minerals Council of Australia estimates coal, which sits ahead of education as Australia’s largest export, supported 170,000 jobs in 2018.

Importantly, this figure includes jobs that sit outside the education sector. International students support jobs in retail, hospitality, tourism and many more.

At first glance, there is a small but clear net benefit to jobs when comparing the number of international students working (213,300) to the number of roles they support (241,000); just over 27,000 jobs.

However, it is not as simple as subtracting one figure from the other. Given that international students can only work 40-hours per fortnight during their studies, they represent half the number of hours of a full-time employee.

When factoring that in, international students had a net benefit of 134,350 full-time jobs.

Graduate employment rates and permanent migration

The number of graduates who take up their post-study work rights and their overall impact on the workforce is substantially more nuanced than in-study work rights.

According to the Department of Home Affairs, there were 71,200 temporary graduate visa holders in Australia at the end of 2017/18.

Their compound effect will become clearer over the next few decades but, according to the latest Government data, 80 per cent of study visa holders will leave Australia sometime after graduation.

While only around 16 per cent of international students will transition to permanent migrant status, the Australian Chamber of Commerce and Industry (ACCI) notes that they are subject to the same cap limiting permanent migration.

Furthermore, ACCI points out the positive impact of those international graduates who do join the workforce – their skills come at no cost to the taxpayer, as their education in Australia has been entirely self-funded.

For international graduates in the workforce, Australia also sees significant benefits. Not only do they pay tax and consume services, but the skills they bring to the workplace come at no cost to the Australian taxpayer.

Verdict

As the number of international students in Australia increases, it stands to reason so do the number of students and graduates in the workplace.

But while international students may undertake some form of work, they are also supporting jobs in a variety of sectors and industries.

Very stringent limits to work hours, along with a small proportion of students finding employment, means there is a substantial jobs boost to Australia.

For international graduates in the workforce, Australia also sees significant benefits. Not only do they pay tax and consume services, but the skills they bring to the workplace come at no cost to the Australian taxpayer.

The purpose of work rights both during and after study for international students is to provide experience they can take back to their home countries.

The real advantages, however, are felt by Australians, who not only benefit from their skills, but are working in jobs created by international students.

Anton Crace is an award-winning journalist and is the Asia Pacific Editor for the PIE News.