Temporary migration and the labour market in Australia

Abstract

Australia's labour market is most influenced by international migration among OECD nations, but Australian research on this issue focuses almost exclusively on permanent settlement migration. The present paper, however, demonstrates that non-permanent migration has an important impact on the Australian labour market, although such migrants are not included in standard data collections and research on migrants and the labour market. A number of data sources are utilised to estimate the labour-market impact of Working Holiday Makers, Temporary Business Entrants, Overseas Students, and New Zealand temporary migrants. It is shown that their impact is equivalent to more than 400 000 full-time jobs. However, the effect is magnified because it is concentrated in particular sectors of the economy and in particular communities within Australia. A number of issues relating to temporary migration are discussed, including the nature of its relationship with permanent migration, the effects on job training, and the implications for regional development.