‘Policy mismatch’ for foreign student Temporary Graduate Visa scheme

A decade-old change to the Temporary Graduate Visa scheme, which lets international students stay here longer after their studies, does not help them get a job or permanent residency.

A decade-old change to the Temporary Graduate Visa scheme, which allows international students to stay in the country for longer once they complete their studies, does not help graduates secure a job or get permanent residency.

Longer work rights, a powerful drawcard for international students, may actually reduce the likelihood of obtaining permanent residency because of greater competition, new research by economic research institute e61 found.

In 2013, the government extended post-study work rights from 18 months to up to four years for graduates, which increased international student enrolments to eligible university programs by 27 per cent, or 30,000 enrolments, e61 noted.

An analysis of administrative data found that graduates with longer post-study work rights (PSWRs) did not experience higher earnings or better-quality jobs, and were less likely to obtain permanent residency within three years. PSWRs do, however, attract more international students and provide them with more time to find suitable employment “enhancing their integration and long-term contribution”, researchers Silvia Griselda and Harshit Shah write.

“These findings underscore a key policy tension. While extending PSWRs was effective in increasing international student enrolments, encouraging more graduates to remain in Australia, and attracting higher-quality entrant cohorts, it did not lead to clear improvements in international graduates’ labour market outcomes.

“These mixed results reflect a fundamental policy mismatch: the number of temporary migrants entering on Graduate Visas has increased, but the number of permanent residency places has remained relatively fixed. As a result, longer PSWRs have intensified competition for permanent visas, prolonging uncertainty for migrants.”

Ms Griselda, research manager at the e61 Institute, said “If international graduates are seen as a policy lever to boost labour force participation and productivity, visa settings need to support their long-term integration into Australia’s workforce and society.

“Without efficient pathways to permanent residency, longer work rights may simply extend uncertainty — with limited benefits for graduates or the broader economy.”

JOANNA PANAGOPOULOS