New research by the ACOSS and UNSW-led Poverty and Inequality Partnership finds that migrants in Australia have comparatively strong employment outcomes and low rates of poverty, but that outcomes vary considerably for people depending on their pathway as a migrant, refugee or person seeking asylum.
The report, The first 10 years: Employment, income and poverty among migrants and refugees in Australia, highlights concerningly high rates of poverty among people holding humanitarian, family and student visas, and points to the need for greater employment and financial support to support the wellbeing of new migrants.
Unsurprisingly, skilled migrants have the highest employment rates and lowest rates of poverty among the different visa categories.
People who are family migrants are more likely to be disadvantaged in the labour market. Women on family visas face particular barriers to employment participation with a third of women aged between 25 and 44 not in the labour force (33.2%), compared with the average of 20.8%.
Australia has a world-leading refugee resettlement program that supports humanitarian entrants during their initial years in the country. However, many refugees face inadequate income support and persistent barriers to employment, which can significantly affect their quality of life and economic participation.
Reflecting their experiences of trauma and dislocation, people entering on humanitarian visas have lower employment and higher poverty rates in the first years after settlement. Around 60% of people entering on humanitarian visas are living in poverty in their first year in Australia and two-thirds of refugee children are living in near poverty with less than $500 a week to live on.
Among temporary visa holders, while skilled temporary visa holders had very low near-poverty rates (1.3%), students had higher poverty (13.7%) and near-poverty (17.6%) rates.
Dr Yuvisthi Naidoo from the UNSW’s Social Policy Research Centre says that a significant driver of poverty amongst migrant families is the Newly Arrived Migrants Waiting Period which bars new permanent residents from accessing most income supports for up to four years.
People who are family migrants in the first four years of permanent residency had unemployment rates of 5.7% for men and 6.7% for women; this equates to more than 75,000 people potentially affected by income support waiting periods.
“Many migrants cannot access income support during their first four years as permanent residents, even if they’ve worked and paid tax in Australia for years on temporary visas before becoming permanent residents,” said Dr Naidoo.
“Australia’s migration program is already a remarkable success story, but the evidence shows we could achieve even better outcomes by removing barriers that keep people in hardship during the first years after they arrive.
“Providing people with a basic safety net during their first years in Australia isn’t just compassionate – it helps families settle more quickly and supports children’s wellbeing.”
ACOSS CEO Dr Cassandra Goldie said that the current policy settings force too many people to endure unimaginable hardships and that some people migrating need more financial and employment support, especially in the early years.
“While refugees rightly have immediate access to income support, the data shows that they are experiencing very high levels of financial hardship. This is not surprising, given the inadequacy of income support payments and the barriers to employment that they face. The research shows that, with the right support on arrival, many refugees enter the labour market with strong growth in employment over the first 10 years.”
“People come to Australia to build a life, and our community is strengthened by their contributions as neighbours, volunteers, family members, and community leaders. But the moment something goes wrong for skilled and family migrants, and they need support from the social security system, they are told they’re on their own due to the impact of waiting periods,” Dr Goldie said.
“Waiting four years for the most basic safety net pushes families into hardship when they are trying to establish themselves in Australia.
“ACOSS is calling for existing income support waiting periods to be reduced and for increased financial and employment support for refugees to reduce the risk of poverty.”
SSI CEO Violet Roumeliotis said: “Overall, migrants and refugees have strong economic outcomes and make an enormous contribution to Australia – economically, socially, civically and culturally. But there is more than we can do to reduce the challenges in the early years of life in Australia and accelerate those outcomes – making life better for migrants and their children, and delivering the full benefit of their contribution to our community and economy even earlier.”
The report can be found here: https://bit.ly/4gCS5oR
UNSW Vice-Chancellor and President Professor Attila Brungs:
“Too many people still face unnecessary barriers that leave them vulnerable to poverty during the critical early years of settlement.
“As a university committed to progress for all, UNSW is proud to support research that provides robust evidence to inform better policy and improve lives.
“Australia’s success has always been built on the contributions of migrants and refugees, but this report reminds us that opportunity is not experienced equally.”
UNSW Vice-President, Societal Impact, Equity & Engagement, Professor Verity Firth AM:
“The findings in this report show that targeted investment in settlement support, workforce participation and social protection can make a profound difference, particularly for refugee families.
“Research partnerships like this help ensure that public debate is grounded in facts and that governments have the tools to design policies that strengthen both social inclusion and Australia’s long-term prosperity.”
Key findings:
- Overall, migrants and refugees who have arrived in the last 10 years have strong economic outcomes: employment rates are higher and poverty rates are lower than the Australian average.
- Children face uneven risks across migration streams. Near-poverty rates were 8.2% for children of skilled migrants, 23.8% for children of family migrants, and around two-thirds (66.1%) for children from refugee backgrounds
- While people who come to Australia as humanitarian entrants are often very disadvantaged on arrival in Australia, their economic participation increases significantly over time
- People who are refugee/humanitarian entrants have lower employment rates, are more likely to be providing unpaid assistance and care to others, and have higher rates of poverty and near poverty
- People who are family migrants in the first four years of permanent residency had unemployment rates of 5.7% for men and 6.7% for women, above the all-Australia rates of 4.1% and 3.6% respectively; this equates to more than 75,000 people potentially affected by income support waiting periods.
- People who are family migrants are more likely to be disadvantaged in the labour market than skilled migrants, especially women aged between 25 and 44; 33.2% are not in the labour force, compared with the average of 20.8%.
- The outcomes for people on temporary resident visas vary by visa type. Skilled temporary visa holders had very low near-poverty rates (1.3%), while students had higher poverty (13.7%) and near-poverty (17.6%) rates.
Key recommendations
- Reduce the waiting period for new permanent residents to access income support. If there is any waiting period, it should commence on arrival in Australia rather than once permanent residency is attained. Abolish the waiting period for FTB Part A, Paid Parental Leave, Special Benefit, Carer Allowance.
- Fund specialised targeted support for migrant and refugee communities, including humanitarian entrants/refugees to re-enter the workforce, as recommended by the Workforce Australia Inquiry into employment services.
- Extend work and study rights to people seeking protection visas so that people seeking asylum can live with dignity, support their needs and contribute to their communities.
