Jobs and Skills Australia begin their new report, International Students Outcomes and Pathways Study, by saying:
“Strong post-study employment outcomes for international students are essential to meeting Australia’s skills needs over the medium to long term. This means fully utilising the right skills of the right students, in the right locations at the right time, which in turn may require closer alignment of patterns of study choices, post-study work rights and enabling visas.”
They point out that between 2012 and 2022 international students in VET grew by nearly 90%. The report notes that this trend is partly linked to migration pathways, as many students see VET qualifications as a route to temporary or permanent residency.
For providers, this obviously creates both opportunities and risks.
While demand for VET courses remains strong, JSA also notes that “VET graduates’ pathways to permanent residence have been narrower than higher education graduates’ given their more limited eligibility under the Temporary Graduate visa conditions.” They go on to add that “ there are indications that a higher proportion are achieving permanent residence because of improved employment prospects post-study.” This underscores the importance of providers offering courses aligned with skills shortages and migration opportunities.
VET students differ demographically from their higher education counterparts, being older on average and more likely to package multiple short courses to meet visa requirements. This behaviour reflects both career motivations and migration aspirations but the report suggests that providers also need to be alert to these dynamics.
Interestingly, employment outcomes for international VET graduates are comparatively stronger than for international higher education graduates, with many VET graduates working in occupations that match their qualifications, such as commercial cookery, hospitality, and construction. However, the report highlights the limited spread of outcomes across industries, which risks funnelling large numbers of students into a small set of occupations. This creates vulnerability for providers if migration policy changes narrow the visa settings linked to these industries. Diversification of course offerings and strong industry engagement will be key to sustainable enrolments for VET providers to succeed long-term.
The report identifies persistent challenges around work readiness, English language proficiency, and employer perceptions of international graduates. VET providers in particular are urged to embed more structured work-integrated learning into courses to improve graduate employability.
The report offers 11 recommendations across three different areas:
- System-wide objectives and measures of success
- Supporting policy infrastructure
- Successful transitions from study into the skilled workforce
While it will be for governments to decide on the implementation of JSA’s recommendations, the recommendations focussed on supporting successful transitions into the workforce are worth VET providers looking at closely and considering what changes they can make to their practices to be ready to deliver on them. They are:
- “Strengthen independent assessment of English language proficiency throughout the international student continuum to maximise preparedness for work, including assessment at study entry and exit. This should be informed by analysis of the impacts of changes implemented in 2024.
- Identify and increase system incentives for the inclusion of opportunities for work integrated learning and increasing English language proficiency as a core element of study offerings to increase international graduate employability.
- Grow employer appetite for international graduates by making resources available to support greater understanding of the value of international graduates over the medium and long term to the Australian workforce.”
