A few months back I noted how the Abbott Government had announced a review of 457 visas for temporary foreign skilled workers, which looked as if it would reopen a visa loophole that would allow employers to hire an unlimited number of foreign workers under a temporary working visa, potentially opening the system to widespread rorting.
I also argued that the efficacy of relaxing 457 visa requirements was questionable, given: 1) the latest Department of Employment’s labour shortages report claimed that “skill shortages continued to abate” and employers in 2013 “generally filled their vacancies with ease and had large fields of applicants from whom to choose”; and 2) unemployment is hovering around the highest level in 10 years and likely to deteriorate further in coming years, whereas the labour force participation rate is falling (suggesting hidden employment), and there is substantial under-employment.
Today, The Australian has reported that 457 visas have been used to employ nearly 38,000 workers foreign managers, professionals and tradespeople this year, despite there being a pool of 191,000 unemployed locals qualified for the same jobs:
Official data reveals that while 67,000 Australian technicians and tradies search for work, employers have brought in 10,210 foreign trade workers on 457 work visas during the first nine months of this financial year. Employers also looked offshore for 19,260 professional staff, despite a pool of 83,700 Australians unemployed.
And 8150 managers were sponsored on 457 visas, despite 40,200 Australian managers on the dole queue…
With the mining investment boom set to unwind over the next few years, along with the closure of the local car industry, labour surpluses are only likely to increase from today’s already high levels. In light of these facts, one has to seriously question whether the 457 visa program is being abused by employers, as well as the efficacy of further liberalising the program.
To me, the Coalition’s approach to 457 visas looks like another measure aimed squarely at undermining local workers’ pay and conditions, while at the same time keeping the throttle on population growth and capital’s share of profits.
The system should not systematically make it easier to import labour from offshore rather than training local workers, as this will only lead to a large pool of unemployed, and deprive our youth of employment opportunities.
