Almost half of skilled migrants are working below their qualification level, while Australia’s complex recognition system leaves urgently needed teachers, nurses, engineers and tradespeople underused.

There is wasted talent right across the Australian workforce. It is estimated that 44 per cent of Australia’s skilled migrants are employed below their skill level.

The OECD has found that up to 50 per cent of migrants in Australia with tertiary qualifications work in jobs that do not require their level of education and training. That is roughly double the experience of Australian born workers with equivalent qualifications.

The OECD has also estimated that employing migrants at the same qualification level as native-born workers would add several percentage points to GDP in countries with large migrant populations. And Australia has one of the highest proportions of overseas born residents in the world.

Skills shortages have been a problem for decades. In 2025, 29 per cent of occupations were in shortage. This involves almost 50 per cent of trade roles and about 40 per cent professional occupations.

The government appointed Martin Parkinson, a former secretary of Treasury, to advise on the wasted skills of migrants to Australia. He presented his report in March 2023, over three years ago.

Following the Parkinson review the Australian government launched its revised official migration strategy involving a series of structural overhauls to the visa and skills framework.

But Parkinson expressed concern that after three years there was still very slow implementation of his report. In an address to the National Press Club, he called for urgent action. He said that nearly half of all permanent migrants are working below their skill level. He said that there is an enormous economic value that is currently going to waste,........

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