Reform skills recognition now to tackle productivity crisis, leaders urge in national address

Parkinson and Roumeliotis, representing the Activate Australia’s Skills campaign, say that the reform is urgently needed, warning that delay will mean weaker productivity, deeper workforce shortages and the continued underuse of skills the country urgently needs.

More than 620,000 permanent migrants in Australia are working below their skill level, despite one in three occupations facing shortages. According to the campaign, that mismatch is costing the economy $9 billion each year. Each migrant who is unable to work in their licensed profession costs $42,580 in lost productivity.

With cost-of-living pressures mounting and essential services struggling to find workers, Parkinson and Roumeliotis say that this is a reform where everyone wins, one that could ease workforce shortages, lift productivity and deliver better services to Australians without delay.

Dr Martin Parkinson AC PSM, Chancellor of Macquarie University and Former Treasury Secretary said:

“Australia is in the midst of its worst labour productivity growth on record and facing a real risk of stagflation, yet we have built a system that prevents migrants from working at their full capacity. Enormous economic value is currently going to waste, largely unnoticed.”

“No matter where you stand on migration numbers, creating a skills recognition system that is faster and more affordable while maintaining safety and quality just makes sense.”

“The Treasurer’s recent Economic Reform Roundtable saw rare consensus across government, industry and unions that the skills recognition system is not working. That kind of tripartite alignment on a structural reform is genuinely unusual. But consensus without action is just a group of people admiring a problem.”

“The government has an opportunity in the upcoming budget to fix skills recognition in this country so we can all benefit from unlocking the potential of literally hundreds of thousands of people whose skills are going to waste.”

Violet Roumeliotis AM, CEO of SSI said:

“Nearly half of permanent migrants in Australia work below their skill level. These are professionals we desperately need – engineers, nurses, teachers, electricians and psychologists – who are already in Australia, but are held back from working in their fields because of a costly and confusing system to recognise their skills and qualifications.”

“We all the bear the cost of this broken system though long waiting lists, delayed houses, higher prices and billions in lost productivity and economic growth.”

“We have a fully-costed solution to reform the skills recognition system drawn from international best practice which would ease workforce shortages, address stagflation risks and lift national productivity. We’re calling on the federal government to commit to this reform package in next month’s budget.”

“Everyone wins from making skills recognition faster, fairer and more affordable. Businesses get to fill skill shortages, patients get the care they need sooner, we all access better services, and professionals get to do the jobs they’ve trained for. It’s a win-win-win.”

The Activate Australia’s Skills campaign is calling for four practical solutions to reform skills recognition and boost national productivity:

– Establish one national governance system for all overseas skills and qualifications recognition, including a commissioner with regulatory power to provide independent oversight and transparency.

– Create a more joined-up system that links skills recognition for migration purposes with licensing and accreditation for employment purposes.

– Provide financial support for individuals to remove cost barriers and an online portal with all the information so people know what they need to do.

– Set up Migrant Employment Pathway Hubs, or career gateways, with skills recognition navigators to get qualified people working in their professions again.

Dr Martin Parkinson and Ms Violet Roumeliotis will present their findings and reform blueprint at the National Press Club today at 12:30pm.

Media contact:

Tamara Kotoyan

0430 291 890 Tamara.Kotoyan@essentialmedia.com.au