Australia’s Labour Shortage and Student Visa Holders

Across multiple industries, employers are increasingly struggling to find skilled workers to fill key roles, as the local labour market fails to meet operational demands.

Business owners and recruitment teams report that qualified candidates have become scarce, leaving many companies unable to sustain growth or deliver services effectively. In response, more employers are turning to the sponsorship of migrant workers to address the widening skills gap.

However, this solution brings new challenges. Many employers remain cautious about the risks involved in recruiting from overseas, particularly when it comes to verifying whether migrant workers possess the practical experience and qualifications necessary to perform at the required level. 

This uncertainty has become one of the key deterrents in adopting migrant sponsorship as a long-term workforce strategy. 

Some Australian companies have learned the hard way that sponsoring a migrant worker can be a costly gamble. After investing significant time and resources in the sponsorship process, some employers later discover that the new hire cannot perform at the level required for the role.

To mitigate this risk, a more measured approach could be allowing businesses to employ migrant workers temporarily before committing to full sponsorship. There is, in fact, an underutilised pool of talent already onshore — skilled migrants currently residing in Australia on student visas. Many of these individuals bring with them advanced qualifications and professional experience gained in their home countries.

Yet, many employers remain unaware of the legalities surrounding student employment. Student visa holders are permitted to work in Australia under specific conditions, including limited work hours during academic sessions. This provides businesses with a valuable opportunity to assess a worker’s skills and suitability before proceeding with formal sponsorship, while also helping students gain local experience.

Furthermore, most international students transition to a Graduate Visa (subclass 485) upon completing their studies. This visa grants temporary residency and unrestricted work rights for a period of at least 18 months, with some graduates eligible for extended durations depending on their qualification level and field of study.

For employers, this pathway presents a strategic opportunity to retain skilled talent already integrated into the Australian workforce. Businesses that have trialled student visa holders during their studies can seamlessly continue employment once the graduate visa takes effect, without the immediate need for sponsorship.

This visa progression could help organisations close critical skill gaps while reducing recruitment risks. By engaging with international students early, employers can build a pipeline of capable, work-ready professionals who are already familiar with Australian workplace standards and culture.

Book a consultation to speak to one of experienced Registered Migration Agents today.

Disclaimer: The information provided herein is of a general nature only and does not constitute immigration advice. For more detailed and case-specific information or advice, please get in touch with SCA Connect.