Does the Study-Migration Pathway Advantage International Students in Australian Employment? (Key Findings from the DEEWR Study) Professor Lesleyanne Hawthorne Associate Dean International Faculty of Medicine, Dentistry and Health Sciences AEIC Conference Sydney 13-16 October 2009 The Challenge – Employment Outcomes for Degree-Qualified 1996-2006 Arrivals in Australia, All Migration Categories, First 10 Years in Australia (2006) Select Birthplace Employed in Own Field Other Profession Low Skilled Unempl. NILF Total Number Australia 48.6 8.0 13.0 1.3 9.8 931644 UK/Ireland 42.8 9.5 12.1 1.7 11.9 102311 South Africa 44.2 9.9 11.6 2.0 9.3 18617 Malaysia 39.1 12.0 16.6 3.3 12.8 26744 E Europe 31.3 10.7 20.8 4.1 14.9 15478 India 24.8 9.5 32.0 5.9 13.3 49283 Philippines 22.0 6.7 39.9 3.2 15.8 28899 China 17.8 9.1 26.7 7.9 21.9 46504 Source: Derived from 2006 Census data, Migration and Education: Quality Assurance and Mutual Recognition of Qualifications – Australia Report, L Hawthorne, UNESCO, http://unesdoc.unesco.org/images/0017/001798/179842E.pdf , Paris Australian International Education Conference 2009 www.aiec.idp.com
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Does the Study-Migration Pathway Advantage
International Students in Australian Employment?
(Key Findings from the DEEWR Study)
Professor Lesleyanne Hawthorne
Associate Dean International
Faculty of Medicine, Dentistry and Health Sciences
AEIC Conference Sydney 13-16 October 2009
The Challenge – Employment Outcomes for Degree-Qualified
1996-2006 Arrivals in Australia, All Migration Categories, First
10 Years in Australia (2006)
Select Birthplace
Employed in Own Field
Other Profession
Low Skilled
Unempl. NILF Total Number
Australia 48.6 8.0 13.0 1.3 9.8 931644 UK/Ireland 42.8 9.5 12.1 1.7 11.9 102311 South Africa 44.2 9.9 11.6 2.0 9.3 18617 Malaysia 39.1 12.0 16.6 3.3 12.8 26744 E Europe 31.3 10.7 20.8 4.1 14.9 15478 India 24.8 9.5 32.0 5.9 13.3 49283 Philippines 22.0 6.7 39.9 3.2 15.8 28899 China 17.8 9.1 26.7 7.9 21.9 46504
Source: Derived from 2006 Census data, Migration and Education: Quality Assurance and Mutual Recognition of Qualifications – Australia Report, L Hawthorne, UNESCO, http://unesdoc.unesco.org/images/0017/001798/179842E.pdf , Paris
Australian International Education Conference 2009 www.aiec.idp.com
Source: Derived from 2006 Census data; Migration and Education: Quality Assurance and Mutual Recognition of Qualifications – Australia Report, L Hawthorne, UNESCO, http://unesdoc.unesco.org/images/0017/001798/179842E.pdf , Paris
Australia’s Policy Transformation:
‘Two-Step Migration’ 1999+
Removal of 3 year eligibility and professional experience
requirement for international students
Applications on-shore (at point of course completion)
‘Win-win’ – boost to Australia’s export education industry
Attraction to employers: Local qualifications, experience,
good English, acculturated, prime workforce age
Exempted from English language testing – gain
maximum points as condition of university entry
Source: Review of the Independent and Skilled-Australian Linked Categories, Department
of Immigration and Multicultural Affairs, Canberra (1999)
Australian International Education Conference 2009 www.aiec.idp.com
International Student Response to Skill Migration
Opportunity in Australia by 2004
0
3,000
6,000
9,000
12,000
15,000
18,000
Offshore Onshore
Other occupations
Tradespersons
Professionals
Managers
International Enrolments in Australia by Top Source
Countries, All Sectors (October 2008); July 2009 = 547,663
(AEI Data)
Nationality Enrolments % of Total Growth on YTD
August 2007 China (38% migrate) 112,172 23.6% 18.8% India (66% migrate) 80,291 16.9% 47.4% Republic of Korea 31,667 6.7% 3.6% Malaysia 20,449 4.3% 6.3% Thailand 18,564 3.9% 9.8% Hong Kong 16,827 3.5% -5.0% Nepal 14,605 3.1% 101.8% Indonesia 14,071 3.0% 4.1% Vietnam 13,367 2.8% 62.7% Brazil 12,493 2.6% 26.4% Other Nationalities 139,883 29.5% 9.2% Total Enrolments 474,389 100.0% 18.5%
Australian International Education Conference 2009 www.aiec.idp.com
Findings from the 2006 Skilled Migration Review:
Employment Levels 6 Months Post-Arrival by
Category (Birrell, Hawthorne & Richardson 2006)
72%77%
82%
69%
99%
83%
20%
11% 13%
23%
1%
12%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Offshore
Australian
Sponsored
Offshore
Business
ENS/RSMS
Offshore
Independent
Skilled
Designated
Area
Sponsored
Onshore
Business and
ENS/RSMS
Onshore
Former
Overseas
Students
Employed Unemployed
But: Employment @ 6 Months for Former Students
Compared to Off-Shore Principal Applicants
Former international students:
Annual salaries of around $33,000 (compared to $52,500 for offshore arrivals);
Average weekly earnings of $641 (compared to $1,015);
Lower job satisfaction, with 44 per cent liking their work (compared to 57 per cent); and
Far less ‘often’ use of formal qualifications in current work (46 per cent compared to 63 per cent)
Source: B Birrell, L Hawthorne & S Richardson (2006), Evaluation of the General Skilled Migration Categories, Commonwealth of Australia, Canberra
Australian International Education Conference 2009 www.aiec.idp.com
Quality assurance and demand in VET sector training
RTO’s: ‘Wily entrepreneurial players who exist to funnel
students into skilled migration’
Case Study: Impact of English Level on Employment
of Skill Migrants 6 Months Post-Arrival (2006)
Australian International Education Conference 2009 www.aiec.idp.com
The Problem of English: Quality Control
(Employment Significance!)
Source Country
IELTS 5 2004-05
IELTS 5 2005-06
IELTS 6 2004-05
IELTS 6 2005-06
Total Tested
2004-05
Total Tested
2005-06
China 43% 43% 56% 57% 2,655 4,209
India 5% 17% 94% 82% 2,433 2,169
Indonesia 16% 32% 84% 68% 1,408 749
Malaysia 16% 24% 84% 76% 1,113 797
Hong Kong 17% 43% 83% 57% 863 683
South Korea 23% 56% 76% 44% 474 449
Singapore 10% 18% 90% 82% 440 258
Bangladesh 23% 42% 77% 58% 436 479
Sri Lanka 10% 25% 90% 75% 360 346
Japan 18% 37% 82% 63% 248 174
Taiwan 24% 47% 76% 53% 231 133
Pakistan 9% 25% 90% 75% 224 141
Thailand 29% 51% 70% 49% 200 175
Vietnam 36% 33% 64% 67% 200 152
Source: Adapted from data provided in Evaluation of the General Skilled Migration Categories, B Birrell, L Hawthorne & S Richardson, Commonwealth of Australia, Canberra, 2006 and ‘Implications of Low English Standards Among Overseas Students at Australian Universities’, B Birrell, People & Place, Vol 14 No 4 2006
DEEWR Study 2009: What Australian Employers
Want in New Graduates/ Trainees (Interview Data x
43) – Minimal Prejudice Evident
Fields:
Accounting, IT, Engineering, Medicine, Nursing
Hospitality, hairdressing, building
Key issues:
‘The total package’ (backroom jobs vanishing)
The right technical skills
Impact of supply-demand on ‘tolerance’ (eg Deloitte and accounting: IELTS 8)
English ability (minimal access to concurrent support/ additional training)
Cross-cultural adaptability, capacity to ‘fit in’
Trades??
Lack of expectation former students would work in these
Australian International Education Conference 2009 www.aiec.idp.com
The Good News @ 6 Months:
The Value of the Australian Study Pathway
Former students:
New migrants ‘protected’ by Australian qualification
High labour market participation rates
85% employed, compared to 79% of offshore NESB migrants
Greatest level of protection = former students from:
China (75% employed)
Middle East/ North Africa (90% employed)
Non-India Commonwealth-Asia (80% employed)
Source: Analysis of Longitudinal Survey Data on Immigrants to Australia (LSIA 3 Wave 1 and 2,
derived from Department of Immigration and Citizenship
The Value of the Australian Study Pathway for
International Students by Select Birthplace
(Compared to Off-Shore Migrants)
Country/ Region
Visa Status Employed Unemployed NILF
ESB Onshore Offshore
86.7 92.9
7.2 1.8
6.0 5.3
Europe Onshore Offshore
91.2 91.7
5.3 5.6
3.5 2.8
India Onshore Offshore
92.2 91.1
7.3 5.9
0.6 3.0
N Africa/ Middle East
Onshore Offshore
89.5 71.4
10.5 28.6
Other Asia Onshore Offshore
87.6 80.0
6.9 12.2
5.6 7.8
China Onshore Offshore
74.8 54.7
10.9 27.4
14.3 17.9
Source: Derived from LSIA 3 database (DIAC); for full data see Key Factors Influencing the English Language Proficiency, Workplace Readiness and Employment Outcomes of International Students, S Arkoudis, L Hawthorne, C Baik, G Hawthorne, K O’Loughlin, E Bexley & D Leach, Department of Employment, Education and Workplace Relations, Canberra, 2009, 160pp
Australian International Education Conference 2009 www.aiec.idp.com
Access to Professional Employment:
Outcomes at 18 Months for Former Students
Excellent overall employment rates (in global terms!):
92% (offshore) and 93% (onshore)
(Canada skilled migrants rates far lower = 60%)
However:
Former students at far greater risk of low-skilled work than offshore migrants (41% compared to 28%)
Former international students:
Far less likely to be employed in own profession than off-shore skilled migrants in:
Education (60% compared to 31%)
IT (56% compared to 35%)
Accounting (48% compared to 35%)
Relatively short courses (eg 2 years)
Over-subscribed fields (IT and Accounting)
Problem of Over-Supply: Growth in New
International Student Enrolments 2002-2008, by
Field, Course Level and Type
Top 5 Degree Enrolments by Field
2002 2008
Business/ Commerce 29068 48922
Accounting 4187 20210
IT 19061 13528
Engineering 6991 11052
Teaching 2948 5796
Top 5 Dip/Adv Cert 111 & 1V By Field
Business/ Commerce 14316 62351
Food/ Hospitality 1264 11551
Hairdressing 272 6514
IT 11013 5006
Accounting 988 4455
Source: Derived from AEI enrolment data (August 2008); for full data see Table 2.11 of Key Factors Influencing the English Language Proficiency, Workplace Readiness and Employment Outcomes of International Students, S Arkoudis, L Hawthorne, C Baik, G Hawthorne, K O’Loughlin, E Bexley & D Leach, Department of Employment, Education and Workplace Relations, Canberra, 2009, 160pp
Australian International Education Conference 2009 www.aiec.idp.com
Which Courses Deliver the Best Outcomes
for Former Students @ 18 Months?
Criteria:
Salary level
Using formal qualifications in work
Value for international students in qualifying in longerAustralian courses:
Identical or much better rates of employment in the profession (compared to experienced off-shore skilled migrants) in:
Engineering
Law
Medicine
Nursing
Lack of cultural enclosure, mandatory English language levels
Less over-supply
Additional Key Findings from DEEWR 2009
Study (Statistical Analysis)
English level matters enormously:
@ 6 months: Migrants who speak English very well (or native
speakers) 3.6 times more likely to be employed than poor
speakers
@ 18 months: Migrants who speak English very well (or native
speakers) 4 times more likely to be employed than poor speakers
Age matters:
@ 6 months 25-44 year olds 56% more likely to be employed than
18-24 year olds
And former students maintain the highest overall employment
outcomes:
@ 18 months: 4 times more likely to be employed than Business
migrants, while off-shore skilled migrants are 2.5 times more
likely to be employed than Business migrants
Australian International Education Conference 2009 www.aiec.idp.com
Current Policy Issues – Review of the Migration
Occupations in Demand List: 1999-2007
Year Professions Trades and Vocational Occupations
Electronic Equipment Tradesperson, Fibrous Plasterer, Fitter, Floor Finisher, Furniture Finisher, Furniture Upholsterer, Gasfitter, General Electrician, General Plumber, Hairdresser, Joiner, Lift Mechanic, Locksmith, Mechanical Services and Air-conditioning Plumber, Metal Fabricator (Boilermaker), Metal Machinist (First Class), Motor Mechanic, Optical Mechanic, Painter and Decorator, Panel Beater, Pastry Cook, Pressure Welder, Refrigeration and Air-conditioning Mechanic, Roof Plumber, Roof Slater and Tiler, Solid Plasterer, Sheetmetal Worker (First Class, Stonemason, Toolmaker, Vehicle Body Maker, Vehicle Painter, Wall and Floor Tiler, Welder (First Class)
Indian Student Case Study: 2002 to 2008
Enrolment Transformation
Enrolments:
65,377 (June 2008) cf 93,387 (China)
2009: Overtake China
Proportion migrating:
66-73% (China around 38%)
Universities of choice:
Lowest ranking
Sector of enrolment:
Dramatic shift to VET sector
June 2008: 36,045 in VET sector compared to 21,111 in degrees 2002: 1,827 in VET sector (compared to 6,575 in degrees)
(China = 18,808 in VET sector compared to 41,812 in degrees)
Course skewing: MODL trades
Source: Analysis of 2002-2008 AEI data
Australian International Education Conference 2009 www.aiec.idp.com
Australian Outcomes from Skill Migration
and 2007-09 Policy Refinements
Skill migration outcomes (August 2006):
18 months post-arrival - only 4% of new skilled migrants unemployed
Lower than 4.7% national average
September 2007 changes (targeting former students):
Stronger English skills - (IELTS 6.0 minimum, not 5.0) Recent work experience in field (onshore and offshore applicants) Higher bonus points (PhD, Masters) Immediate access to temporary post-study visa (more points access) Professional year in Australia for former students (if needed)
Rudd government:
Determination to avoid ‘dumbing-down’ of skilled migration Remove perverse incentives in the study-migration pathway
Finetuning Skilled Migrant Selection: Policy
Developments of Relevance to International
Students
1. December 2008:
Critical Skills List: Reversion to the professions