Settlement outcomes of permanent migrants are much better than media tells us

New ABS data show high employment, qualifications and earnings among skilled migrants and their accompanying families. The findings raise questions about calls for deep cuts to Australia’s permanent skilled migration program.

With the current raging immigration debate, this week the ABS released comprehensive data on the settlement experience of permanent migrants. This data gives the best insight into the settlement experience of migrants in different permanent visa streams compared with the Australian population as a whole. Permanent migrants are contributing to Australia much more than the media (and some politicians) would tell us.

The data confirms that skill stream migrants, including the accompanying family of skill stream migrants who have been much denigrated in the public debate, are settling very successfully with high levels of employment, low reliance on government support and high levels of English.

The data is drawn from a combination of the Census, the Person Level Integrated Dataset (PLIDA), which draws on data from a range of government agencies (including the ATO), and the Australian Census and Migrants Integrated Dataset (ACMID), which contains data on people who were granted a permanent skilled, family, humanitarian or other permanent visa and arrived in Australia between 1 January 2000 and each Census night.

It is notable that Australia’s immigration system changed significantly from 2001 onwards.

Citizenship

In 2021, 59 per cent of permanent migrants had taken out Australian citizenship. It was 4.2 per cent for permanent migrants who had been in the country five years or less and 77 per cent for migrants who had lived in Australia for more than 10 years.

Humanitarian migrants are most likely to take out citizenship (89 per cent after 10 years). Skill stream migrants are more likely to take out citizenship than family stream migrants.

Educational qualifications

Some 71 per cent of permanent migrants aged between 15 and 64 had a post-school qualification, compared with 56 per cent for the whole of the Australian population. Eighty per cent of skill stream migrants, including the adult family of skill stream migrants, had a post-school qualification. Contrary to allegations of some politicians and media, the partners of skill stream migrants tend also to have post-school qualifications.

While only 36 per cent of humanitarian migrants had a post-school qualification, this portion increased with time in Australia, rising to 44 per cent for humanitarian migrants who had been in Australia more than 10 years. Around 16 per cent of humanitarian migrants were enrolled in a post-school course.

Economic participation

In 2021, 82 per cent of skill stream migrants aged 15 to 64 (including partners of skill stream migrants) were employed, compared with 46 per cent of humanitarian migrants and 68 per cent of family stream migrants (mainly the sponsored partners of Australian citizens and permanent residents). That compared with 74 per cent of the whole Australian population aged 15–64 being employed.

While only 25 per cent of humanitarian migrants who had been in Australia five years or less were employed, this increased to 55 per cent for those who had been in Australia 10 years or more.

In the financial year 2023–24, 92 per cent of skill stream migrants aged 15–64 (including the family of skill stream migrants) were earning a personal income, compared with 86 per cent of the whole Australian population aged 15–64. The high rate of personal income for skill stream migrants was the case irrespective of length of time in Australia (ie they begin contributing to the labour force very soon after arrival).

For family stream and humanitarian migrants, the portion earning a personal income increased over time. This increased for family stream migrants from 74 per cent for those who had been in Australia less than five years to 85 per cent for those who had been in Australia 10 years or more. For humanitarian migrants, the portion earning a personal income increased from 39 per cent for those who had been in Australia less than five years, rising to 60 per cent for those in Australia for 10 years or more.

In 2023–24, 14 per cent of permanent migrants earned their own unincorporated business income, compared with 12 per cent for the whole Australian population. At 16 per cent, this was highest for humanitarian migrants who had been in Australia more than 10 years. This replicates the experience of many migrants who arrived in Australia post-war with few English skills and post-school qualifications.

In 2023–24, the median income of permanent migrants was $70,762, compared with $64,897 for the whole Australian population. Skill stream migrants (including adult family) had a median income of $83,466, while family stream migrants had a median income of $58,926 and humanitarian migrants $49,761.

Income of permanent migrants increased with time in Australia, particularly for family and humanitarian migrants.

In 2023–24, 4.3 per cent of permanent migrants were receiving unemployment benefits, compared with 6.2 per cent of the whole Australian population. It was highest for humanitarian migrants at 21 per cent and lowest for skill stream migrants at 1.7 per cent. Only 0.1 per cent of skill stream migrants who had lived in Australia five years or less were receiving unemployment benefits. That is inevitable given they are barred from receiving these for the first four years after arrival.

In 2021, 15 per cent of permanent migrants were living in areas of Australia with the greatest socio-economic disadvantage, compared with 19 per cent of the Australian population as a whole. Forty-four per cent of humanitarian migrants were living in areas of greatest socio-economic disadvantage.

These percentages declined with the length of time living in Australia.

English proficiency

In 2021, 89 per cent of permanent migrants only spoke English or spoke English well or very well. Some 96 per cent of skill stream migrants (including adult family) spoke English well or very well. Eighty-two per cent of family stream migrants spoke English well or very well, while 71 per cent of humanitarian migrants spoke English well or very well. English proficiency increased with time spent in Australia.

Health

The specialist health services most likely to be used by skill stream and family stream migrants were obstetrics and gynaecology, while for humanitarian migrants it was cardiology. The most commonly reported long-term health condition among permanent migrants was asthma (four per cent), whereas a mental health condition (nine per cent) was the most common for the total population of Australia.

In 2024, 3.8 per cent of permanent migrants were on GP mental health plans, compared with 4.8 per cent for the Australian population as a whole. Humanitarian migrants who had been in Australia more than 10 years were more likely to be on mental health plans (4.6 per cent), while skill stream migrants who had been in Australia for five years or less had the lowest usage of such plans (two per cent).

Housing

In 2021, the proportion of permanent migrants who owned their home with a mortgage or outright was 62 per cent, compared with 69 per cent for the total population of Australia. Home ownership was:

• highest for skilled migrants (65 per cent)
• lowest for humanitarian migrants (38 per cent).

Home ownership was higher for permanent migrants who had lived in Australia for longer. The proportions were:

• 38 per cent for migrants who lived in Australia for less than five years
• 71 per cent for migrants who lived in Australia for more than 10 years.

Conclusion

This extraordinarily comprehensive data published this week by the ABS highlights how well skill stream migrants are settling and contributing to Australia’s economy. Contrary to assertions by some politicians and media, the adult family of skill stream migrants are themselves skilled and are performing very well in the labour market.

While there is a strong case for reducing the level of net overseas migration from the current 300,000 and for better targeting skilled migration, on the basis of this recent ABS data, massive cuts to the skill stream of the permanent migration program would be an act of self-harm.