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Home News Market Update

Skilled migrant contribution to the Australian economy outpacing the national average

Dirk MulderbyDirk Mulder
March 26, 2024
in Market Update
Skilled migrant contribution to the Australian economy outpacing the national average
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New research from Pearson reveals that migrants are driving the Australian economy and way of life, and outpacing the national average when it comes to filling the country’s most critical sectors.

The Pearson Migrant and Student Study (PMASS) analysed over 3000 Australian visa applicants who have taken Pearson’s Test of English Academic (PTE), a globally recognized English proficiency test approved by the Department of Home Affairs for all visa classes.

Pearson conducted the research, to understand migrant’s economic, social, and cultural contributions and role in shaping Australians’ shared understanding of the ‘Great Australian Dream.’

According to Sasha Hampson, VP, PTE Global Stakeholder Relations at Pearson, “The data reveals that migrants are essential to bolstering the Australian economy as we continue to face a skills shortage and declining productivity growth, and more recent challenges such as a slowing economy.”

The PMASS found the migrants who had taken PTE were more likely to be employed in crucial fields. Over double the number of PTE test-takers were in aged and disability care compared to the general population (3.6% vs 1.4%), four times more were registered nurses (8.6% vs 2.1%) and seven times more were in software and applications programming (6.3% vs 0.9%).

Hampson said: “According to the 2023 Skills Priority List, more than a third of our occupations are in shortage (36%), which is worse than the year before (31%). Skilled migrants and international students, who themselves will likely become skilled workers, are a beacon of hope for Australia’s economy and way of life.”

Additional findings from the research also highlights the reciprocal benefit to migration – the value migrants add to the Australian economy and social fabric – and concurrently, the value that migrants see in Australia:

  • Migrants’ contributions to the economy grows, with PTE test takers earning an additional $20K per annum to the Australian salary median six months post settlement, which has a flow-on effect to the broader economy. An OECD report suggests areas with higher inflows of migrants gain an economic benefit of $1.5K per person and see a rise in productivity levels.
  • Australia is a nation of open arms, with 91% of PTE test takers feeling welcome in Australia.
  • Females see Australia as a land of freedom, with women more likely to value the independence they get from living in Australia (11% vs 5% of men).
  • Migrants are hopeful for their future in Australia: Migrants’ goals are achievable for study visa holders because of quality education facilities (21%), good job opportunities (17%), employment/career progression (16%), education (10%) and other factors.
  • Learning English is essential to positive migrant experiences according to 97% of PTE test takers, with over two thirds agreeing it’s important because it helped them understand Australian rules and regulations (67%), helped them into employment (66%) and increased ties to the wider community (63%).

These findings echo Pearson’s white paper, ‘Australian Dreams,’ which brings attention to how effective language testing in visa tests is essential to both legitimate migration and subsequently, migrants’ integration and positive experiences in Australia. The white paper is informed by the PMASS as well as interviews with over 30 test takers conducted in focus groups in Sydney, Brisbane, and Melbourne, which uncovered stories of how taking PTE and moving to Australia changed their lives for the better.

The white paper and fact sheet can be found here.

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Dirk Mulder

Dirk Mulder

Dirk Mulder is the founder of the Koala and Principal of MulderPR, a strategy and marketing communications consultancy specialising in international education. Dirk has had extensive experience in International Education and Service Management, holding Directorships at the University of South Australia, Curtin University and Murdoch University as well the Lead for International Student Initiative across the Asia Pacific region at Allianz Partners. He has been member of the boards of Perth Education City (now StudyPerth) and Education Adelaide, he has chaired the Universities of Perth International Directors Forum and has been a past board member of the Hawkesbury Alumni Chapter, his alma mater. His views are widely published and quoted across the media and has been seen in Campus Morning Mail, the Australian Financial Review and ABC television and online. Acknowledgement/disclosure: Dirk holds shares in and outside of the education sector including in IDP Education.

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