Impact Of Immigration On Employment Prospects In Australia: Research Objectives, Questions, And Literature Review

Research Aims/Objectives

Traditionally, migrant labours or skill workers have been an efficient strategic alternative to fulfil the skill and human resource demands of a nation. But such an act usually creates a competition between the existing local professionals (labours) and the immigrant workers. Hence it becomes important for a country to effectively structure and manage its work immigration practices. As in the case of Australia, the country has not been able to employ efficient immigration practices (Abelson & Dalton, 2018).

The effect of immigrations on Australians, especially on their wages and their work prospects, is an inquiry that can incite warmed and enthusiastic discussion. Tale and instinctive impressions can without much of a stretch command either side of people in general discussion. In this paper, the researcher assesses carefully at the information to check whether it can observe an impact of migration on unemployment rate of Australian workers. The aims at outcomes for two groups: those conceived in Australia (locals) and locals and past foreigners (officeholders). A standard focused labour market model proposes that movement ought to positively affect unemployment rate of Australian workers. A deluge of migrants moves the supply bend to one side, discouraging business status of Australian specialists. This basic hypothetical model, notwithstanding, may neglect to catch an assortment of other economic phenomena that may counterbalance the negative employment rate impact.

This paper examines the impact of the immigration on the employment of Australian workforce.

The impact of the immigration is not only confined to the financial aspect rather it flows into multiple dimensions that are essential for the success of a nation. It has the capability to positively impact the labour employment and participation practices, the skill level of the community as well as the national level wage structure, hence the importance of the same cannot be neglected. Generally the immigration trend changes within a country are the reflections of changes in legislature and policy structure of the country with respect to their immigration laws. Additionally factors like existing professional workforce base and the actual demand of the skilled labour also have a significant impact on the immigration trend for the country.

During the 1990s decade majority of the workforce in the Australian work workforce pool included immigrant skilled labour. Approx. 26 percent of total workforce include skilled labour or working immigrants from the European countries. Although the trend changed and Asian labour took over as the major contributor or skilled workforce within the Australian workforce pool but the overall reliance over the migrant employees was still intact. The trend and employment rate throughout that decade were encouraging and were considered as one of the core reason behind financial productivity of the nation. But evidently, the current rate of employment for migrants in Australia is highly discouraging. Migrants from across the globe are facing it difficult to find a job or make a living in the Australian Region. According to Gewin, (2012), the migrant workforce from Middle Eastern countries like North Africa are facing more difficulties as compared to professionals and skilled labours from other parts of the globe. On an average, the migrants from North Africa are 3 times more subjected to loose work in the first 5 years of their migration itself. Similarly for European or Asian labours, the current unemployment rate of 35% is approximately six times the national average.

Literature Review

Different experts have provided different opinions contributing to this current situation. Islamic Migration Specialists have argued that the situation is more critical for job seekers who have “Mohammed” attached with their names or for the women wearing Hijab. (Hava & Erturgut, 2010). Similarly different communities have different statistical figures related to their unemployment rates. According to the Report presented by ABS (Australian Bureau of Statistics) the Southeast Asian immigrants have an unemployment rate of 3.6%, and for Southern Europe and Eastern Europe the same was observed to be 1.9% (KARANASSOU & SALA, 2009). On the contrary, Australian National University economist Bob Gregory highlighted the lack of language proficiency as the key reason behind these increased and alarming rates of unemployment. According to the expert, English language skills are “important” to find a job and majority of these immigrants lack the same. Hence, highlighting that the demographical factors are not the real reasons behind the current issue. Irrespective of the reasons the decreased level of immigration has resulted in reduction in the overall productivity levels for the nation. This change in trend and differentiating believes have created a complex structure and prompted the researchers to critically study this domain. According to different researchers, changing demographics, possible changes in skill requirements or legal policies etc. can be the possible reasons behind this changing trend. In order to back the presented outcome or opinion, it is important that suitable studies and analysis of the situation needs to be conducted.

Immigration is likely to be viewed as being successful, by both immigrants themselves and the Australia-born, if foreigners are fruitful in the work showcase. The workplace can help acquaint an as of late arrived migrant with the methods for the Australian people group and also giving the cash required to set up another home. In the event that outsiders can’t get work after they have arrived they may must be upheld by the standardized savings framework. The proof from Australian examinations is that the monetary and social advantages of movement are most noteworthy when every one of the aptitudes and gifts of migrants are being utilized completely.

A great many people would pass judgment on work advertise accomplishment as having an occupation. Be that as it may, having a vocation may not be a decent marker of accomplishment if migrants are not completely utilizing their aptitudes and capacities (for instance, an abroad prepared specialist functioning as a doctor’s facility precise). Making a decision about whether migrants have been fruitful or not requires an examination of different elements like profit and word related status.

There exist a significant gap between the existing literature related to the relationship between immigration and employment prospect in Australia. This research has tried to bridge that gap by showing extensive focus over the following elements or providing the following listed advantages:

The following are the benefits of organizing this research:

• A trend analysis of overseas arrivals in Australia for employment purpose and unemployment rate of Australian workers over the time frame 2015 to 2018. (Bardsen, Hurn & McHugh, 2010).
• The study has considered monthly data from July 2015 to May 2018 and have gathered from ABS stats and data.gov.au websites.
• A correlation and regression study has been performed to understand the association between overseas arrivals and unemployment rate of Australian work force over the specified time frame.

The research has used data gathered from below sources:

Quantitative study:

The initial focus of the study was on trend of overseas arrivals as well as unemployment rate (Atalay, Kim & Whelan, 2014).The study has used to forecast on the Australian resident population in the absence of the immigration factor.

The Second step of the study was correlation and regression analysis considering overseas arrivals as independent variable and total unemployed Australian work force as dependent variable (Bardsen, Hurn & McHugh, 2010).

The study conducted under this research project is highly consistent. It provides deep insights into the relationship between the immigration structure as well as the Australian Economy (Berry, 2009). The possible scope of sampling error in the given labour force statistics is limited. Further the possibility of deviations in the survival rate statistics is also negligible as majority of the calculation involve younger age groups. Although the sampling errors in ERP statistics were subjected on the higher side due to the presence of a larger data set but considering the report published by ABS relate to the historical standards, the 2016 Census results have little change in ERP (ABS 2017).

Overseas arrivals:

While Australia has dependably been one of the world’s real ‘movement countries’, there have been some checked changes to the sythesis of its relocation streams as of late. Verifiably, the larger part of Australia’s abroad conceived occupants originated from the UK or Europe, however this example has moved altogether. In spite of the fact that the greater part of Australia’s abroad conceived occupants begin from the UK, the numbers are declining—clearing a path for an expanding number who were conceived in Asia, especially China and India. As far as new (changeless) vagrants, without precedent for Australia’s history, contestants from China surpassed those from the UK in 2010– 11. The flow consider has likewise demonstrated that there is a steady pattern in abroad landings for work reason.

Another noteworthy improvement in Australia’s relocation story is the development in the quantities of impermanent vagrants entering the nation. Impermanent transients qualified to remain long haul (a year or more) and work for fluctuating timeframes incorporate gifted (subclass 457) specialists, abroad understudies and working occasion creators. Furthermore, under the Trans-Tasman Travel Arrangement, New Zealanders are allowed to visit, live and work in Australia. Subsequently, New Zealanders likewise highlight exceedingly in Australia’s pioneer landing insights, yet take note of that they are not viewed as perpetual vagrants (or incorporated into the Migration Program measurements) except if they apply for (and are allowed) a lasting visa.

Unemployed Australian workforce:

Every month the ABS evaluates the quantity of jobless individuals, discharging pattern, occasionally balanced and unique information. Joblessness information is accessible by age, sex, social conjugal status, nation of birth (constrained), state/an area, work showcase locale, full-time instructive participation (youth just), and length of quest for new employment.

Changes in the quantity of jobless individuals (increments or declines in the quantity of ‘jobseekers’) are some of the time erroneously alluded to as increases or misfortunes of occupations. While the passing of work unquestionably may prompt a man being named jobless, it is regardless of whether they are utilized that is being estimated. Below chart gives changes in the quantity of jobless individuals from the beginning of the information arrangement until the latest time frame.

The below table has shown that the R Square is equals to 0.1162, which indicates a positive association between overseas arrivals for employment purpose and unemployed Australian workforce. Even though, the association is close to 0, it can be said that the migrants has led to unemployment of Australian workforce.

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.116273718
R Square	0.013519577
Adjusted R Square	-0.016373769
Standard Error	44.23370838
Observations	35
ANOVA
	df	SS	MS	F	Significance F
Regression	1	884.9022293	884.9022	0.45226	0.505945427
Residual	33	64568.49158	1956.621
Total	34	65453.39381
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	708.4887222	36.84005174	19.23148	1.69E-19	633.5370733	783.440371
Migrants [For Employment Purpose]	0.000665661	0.000989826	0.672503	0.505945	-0.001348155	0.002679478

To check if your results are reliable (statistically significant), the researcher has looked at Significance F (0.505). It indicates that the impact of overseas arrival for employment purpose is alone not responsible for unemployment issue. Migration and the subsequent unemployment have been one of the real issues in the conventional and in addition contemporary worldwide monetary situation. Business analysts have created diverse models to clarify the occurrence of work movement with regards to a double economy. Every one of these models depend on the suspicion that there are two parts that involve a creating economy in particular the essential division or conventional farming segment and the optional segment or present day modern area. The farming area is portrayed by surplus workforce; though, the mechanical segment goes about as the motor of development for the economy.

The key findings from the above analysis revealed the immigrant workforce plays a crucial role in defining the employment changes as well as the financial productivity of the host nation. As evident, between the time periods of 2015 to 2018 not only the immigrant workforce increased but they were the major contributors or participants of the Australian workforce during that time.

Majority of these immigrants worker belong to the group of students and working holidaymakers, who majorly undertake these working opportunities to support their basic expenses. This work group is majorly involved in the hotel and retail industries. In addition to the Australian students, several other groups including Netherland and other OCED countries (Meng & Deng, 2013). In industries where demand peaks and valleys are low, the availability of large groups that are willing to work under these conditions is very beneficial to employers, both in the day and in the year. The key reasons behind the industries opting for immigrant students is their comparatively higher skill set. The given statistics clearly represents that the decomposition of the Australian workforce with respect to the total number of people employed in Australia between June 2011 and June 2016, ages 15–24, 25–54 and 55 and over (Uhlendorff & Zimmermann, 2014). It clearly states that there is an evident employment growth in the working age group of (25-54 years old). The employment ratio has majorly increased during this five year period. Although the increment has not been highly exponential due to changes in employment participation (Wright, 2013).

Drawing on the learning from different literatures (part of the literature review), the current trends and stats reflected by the statistical analysis, the lack of professional competency as compared to the migrant workforce can be the key reason behind the unemployment in case of Australian. Further the experience level of the migrant workforce is also considerably higher as compared to the professional competency level of the local workforce. Hence, the issue is far more stretched from the employment and migration control policies. The following figure represents the same.

Other evident trends were drawn in form of the visa or resident type that the migrant workers have. Migrants with permanent resident visas were most likely to be employed in the market as compared to the migrants who are seeking a job either on the basis of a temporary visa or on student visa type. All these stats clearly highlights that the migrants workforce has a significant role to play in improving or enhancing the financial performance and the productivity of the host nation. Even in the unlikely events where the local workforce or employment is reduced or minimised to zero, the employment and in turn the overall productivity of the nation will not cease to grow. These research surely highlighted the importance of the migrant workforce but the fact that the controlling authorities of the country still has a lot to think for.

Before allowing migrants as work force, local population ought to be furnished with important instruction and fundamental abilities preparing. This will enable them to exploit monetary open doors in their goal nation or society, thus adding to lessening the rate of “mind squander,” especially for very talented or semi-gifted vagrants.

There are likewise various exercises that are basic to advancing the privileges of youth work transients and relieving the danger of them encountering the most exceedingly awful types of misuse and misuse.

These include:

• Sharing solid and applicable data about what’s in store amid their adventure
• Informing them of their work rights and duties
• Providing techniques for revealing sick treatment in the goal nation or society
• Facilitating coordination into the goal nation or society by giving data on its way of life.

Conclusion 

The studies clearly reveal that the immigrants have ensure significant financial benefits to the Australian economy. It has not only allowed the Australian industries to substitute the low performance or competent individuals but ensure that the evident skill gaps between the current group and the required group can be filled.  Additionally, the factors like the required skill set, increase in population, and increased commitment of Australian young professionals into higher educational courses and skills trainings have resulted in development of several skill supply challenges. Following the after effect of global financial crisis, immigrant workers have served as the core strength of pillars for ensuring financial progress of the nation.

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