Softening Oz labour market spells bad news for migrants

As Australia’s immigration moguls tweak visas to encourage skilled worker immigration, it seems that the Australian labour market is weakening.

Those planning to emigrate to Australia may need to hold off on their plans as many companies are now cutting back on hiring. Although at present the market is turned towards employees, experts believe it is ready to reverse and may well become far less buoyant.

Coupled with the news that salaries are expected to increase at a far slower rate in the 2013/2014 financial year, the recently announced doubling of the cost of a 457 visa to AU$900, is putting off more employers from considering workers from overseas. The reason for the fee increase is linked to criticism from local workforces over accusations that employers have been taking on migrant workers at lower salaries than those paid to local workers.

According to headhunting firm Kaizen Recruitment, many Australian human resources managers now consider it’s an employers’ market, a sudden change from previous years. Supply is now exceeding demand in a variety of skills sectors with salary growth affected as a result.

The company believes the softening market may be a new norm which will change hiring practices in the country, although the IT, accounting, general management and finance sectors are still drawing in experienced immigrants. The mining sector, once a hub for workers from overseas, is now drawing in its horns due to weakening demand from China.