The biggest profiteers from this system are our tertiary institutions. Universities in Australia have largely become visa mills, charging the highest visa fees in the world, representing a $40bn industry. Australia’s university administrators take home seven-figure salaries. The average vice-chancellor of one of our visa mills gets paid almost double what the Prime Minister takes home – while more and more working Australians sleep in their cars.
Big business relentlessly lobbies for higher migration as well, citing perpetual “skills shortages” as justification. The evidence regarding an apparent skills shortage tells a different story. Research from economic think tank e61 has shown that Australia’s migration program actually harms productivity, contrary to what corporate interests claim. Their analysis found “migrant workers are more likely to work in lower productivity industries, and within industries they are more likely to work at lower productivity firms” – a trend that “appears to have worsened over the decade to 2020”. What this means is that migrants with engineering degrees are not necessarily working in start-ups creating innovative new products but are more likely to be driving Ubers and doing other low-skilled jobs that ordinary Australians could do. This is why Australia’s productivity remains stagnant despite our record-breaking immigration.
While the Coalition is seeking a cap on foreign students – pegged at 30 or 35 per cent of the total student population – government intervention needs to go further.
In the short term, migration needs to be capped at levels that match housing availability. And voters must demand that our governments prioritise the housing security of Australian citizens over university profits and corporate interests.
Australia’s democracy depends on restoring the social contract that rewards work with basic dignity. Either we control our borders to match our infrastructure capacity or we continue the slide towards becoming a country where full-time work is no guarantee against homelessness.
The choice should be obvious, but our leaders seem determined to make the wrong one.
https://www.theaustralian.com.au/inquirer/labor-migration-failures-create-an-und...