Natasha Doherty Partner, Deloitte · Deloitte Touche Tohmatsu and its affiliates provide audit,...

Natasha Doherty, Partner, Deloitte

Seizing the opportunity: Making the most of the skills and experience of migrants and refugees in Queensland A research report for Multicultural Affairs Queensland Department of Local Government, Racing and Multicultural Affairs March 2019

“We acknowledge the traditional owners of the land on which we meet, the Whadjuk people, and their continuing connection to the land and community

We pay respect to them and their culture, and the Elders past, present and future”

Artwork: Nyiirun Gathay Yayn.Giliyn (“Walking Together”) by Birrbay artist Angela Marr-Grogan

9 © 2019 Deloitte Touche Tohmatsu. All rights reserved.

“The regulatory requirements to highly qualified migrant professionals are

unrealistic, extremely expensive, frustrating, and time consuming.”

“The job market in Australia has been a huge disappointment to me. As a skilled worker, who got a

permanent residency visa through [the] skilled migration process I would never imagine that in almost one year

living here I would not be able to find a job in my field.”

“Being unemployed is causing a lot of psychological stress which has long term

effect on my health and wellbeing.”

“I just feel worried all the time. I feel I will never be able to show my skills and

experience”


Research components and approach An overview of the project methodology is show below, with each component of the analysis supplemented by our primary research with migrants and refugees.

Direct economic costs

Economic impact analysis

Social impact analysis

Enrichment with lived experience

Outputs • Qualitative assessment of

social impacts of skill under recognition

• Case studies or stories taken from consultation with migrants and refugees to give a first person perspective

Outputs • Case studies or stories taken

from consultation with migrants and refugees to give a first person perspective

• Focus group data to validate assumptions that underpin quantitative modelling

Outputs • Real and percentage change

in macroeconomic indicators: such as gross state product, employment, industry output, consumption, investment and exports.

Outputs • Quantification of economic

costs • Quantification of

monetisable social costs • Data for CGE analysis

Total social and economic opportunity


What is the size of the journey of the cohort? 80,000 migrants and refugees have moved to Queensland over the last 10 years. 49 in every 100 skilled migrants aren’t using their skills or experience gained before arriving.

For every 100 migrants and refugees with overseas skills and qualifications

that arrive in Queensland approximately…

47 apply for assessment

51don’t apply to have skills

assessed

15 are not recognised

32 have their skills and

experience recognised (+/- formal registration)

Migration Skills recognition after arrival in Australia

working in jobs that don’t use highest skills or qualifications or not currently employed

working in jobs that do use highest skills or qualifications

49 in every 100

Have a job that uses their

skills

2 outcome uncertain

Formal licensing or registration

21 • applied for recognition

(successful) • using skills

4• applied for recognition

(unsuccessful) • using skills

24• did not apply for

recognition• using skills 27

• did not apply for recognition• not using skills


(unsuccessful) • not using skills


(successful) • not using skills

49 in every 100

(A)

(B)

(C)

(D) (E) (F)

Do not have a job that uses

their skills

Unemployed Employed in a lower skilled job


What are the characteristics of this cohort? Migrants and refugees with underutilised skills are more likely to be female, young, proficient in English and have qualifications in management and commerce.

Other

Gender

English proficiency Field of Study

Male

Not proficient

Society and culture

27%

I.T.

36% 12%

5%

16% Engineering

Highly proficient

Age

38% 35 – 44

45%

17% 45 – 54

42%

58%

42%

36%

12%

Migrants with underutilised skills are

most likely to be:

Female

Proficient in English

25 – 34 years old

Qualified in management and

commerce


Social and economic costs Following a literature scan and review of the data sources available, the following costs were considered to be part of the social and economic costs of skill under recognition for migrants and refugees.

Personal income foregone

Government income

foregone

Superannuation

Public housing

expenditure

Concession costs

Other government payments

Health (including mental health) costs

(partial)

Impact on family and/or dependants

Community cohesion

Increased cost to fill vacant positions due to

skills shortages

Productivity foregone

Cost of reduced innovation due to reduced

diversity

Costs included in direct costing

Costs not included in direct costing (due to data availability)


Estimating economy-wide impacts Using the Household income and labour dynamics data for (HILDA) Australia along with other data sets, the per person costs of skills under utilisation attributable to overseas qualifications were estimated.

Costs attributable to skills underrecognition

• Per person cost of $3,236 for employedmigrants

• Per person costs of $4,332 forunemployed migrants

• A total cost per annum of over $21.9million


Economy wide impacts A computable general equilibrium model was used to estimate the economy wide impacts of increasing skill recognition for migrants and refugees, modelled as a productivity shock.

Bullet

Dash

Sub-bullet Investment

Industry output

Exports Employment

Gross state product

Consumption

Productivity 10,400 not utilising their

skills

60% of migrants have skillsin the areas where key skill shortages have been identified across Queensland


What is the economy-wide opportunity?

Source: Deloitte Estimates

Long-term dividend to Queensland of higher real GSP of $250million in ten yearsfrom better use of the skills of migrants and refugees

-10

0

10

20

30

40

50

60

70

80

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

SM20

15-16

All other servicesGovernment servicesProfessional, business and financial servicesTransport and communicationsTradeManufacturing, utilities and constructionAgriculture and mining


Findings – what are the direct social impacts?

“Stable employment in a job where I feel valued is the

largest barrier to feeling like I belong to the Australian

community.”

“I had to get over my disappointments, depression and feelings about being lost,

unappreciated and not acknowledged- years of work in the medical career pathway

down the drain”

“Being unemployed is causing a lot of psychological stress

which has long term effect on my health and wellbeing.”

“Finding a rewarding and satisfying job has been a

tremendous impact for my life and the life of my family. When I could not find any job I became

depressed and lost my hope and confidence and did not feel

that I belonged here..”

Job Satisfaction


How to realise the opportunity?

Transparency, coordination, fairness

System navigation

Local networks and experience Industry Community

Government

Opp

ortu

nitie

s

For Queensland to start reaping the economic and social benefits of inclusive growth, government, industry and the community all to play their part to address the challenges to optimising the utilisation of skills, qualifications and experience of migrants and refugees.


Acknowledgements

We would also like to thank the following people and organisations who gave their time, hosted focus groups, shared

their experience in the sector, or engaged their clients on our behalf:

•• Gitie House and the Toowoomba International Multicultural Society Inc.

•• Bobby Augustine and the Springfield Malayalee Association

•• Sebastian Chadwick, Cornelia Babbage and Multicultural FamiliesOrganisation Inc.

•• Johanna Kodoatie, Meg Davis, and Townsville Multicultural SupportGroup

•• Ali Ibrahim, Marina Chand, Tim Draper, and the staff of MulticulturalDevelopment Australia

•• Alan Sparks and East Coast Apprenticeships

•• Victoria Dias and the Commonwealth Department of Human Services

•• Greg McKean and Business and Skilled Migration Queensland

•• Sri Sripathy and the Federal Overseas Qualification Unit, Department ofEmployment, Small Business and Training

•• Brett Hall, Jane Newton and Jobs Queensland

•• Commissioner Grant Jameson and the staff of the Office of the FairnessCommissioner, Ontario, Canada

••Queensland Program of Assistance to Survivors of Torture and Trauma

Deloitte Access Economics would like to acknowledge the valuable contribution to this report by the migrant and refugee community of Queensland who shared their stories with us as part of our primary research.

•• Bundaberg & District Neighbourhood Centre

•• Neighbourhood Centre Caboolture Inc

•• Centacare Cairns - Multicultural Services

••Multicultural Communities Council Gold Coast

•• Hervey Bay Neighbourhood Centre

•• Anglicare Southern Queensland

•• ACCESS Community Services Limited

•• George Street Neighbourhood Centre Association

•• Good Shepherd Parish

•• Nambour Community Centre

•• Central Queensland Multicultural Association

•• Islamic Women’s Association of Australia

••MultiLink Community Services

••Mercy Community Services South West Queensland

••Michael Combs of CareerSeekers

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

About Deloitte

Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte's approximately 200,000 professionals are committed to becoming the standard of excellence.

About Deloitte Australia

In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia’s leading professional services firms. Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 6000 people across the country. Focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. For more information, please visit our web site at www.deloitte.com.au.

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Touche Tohmatsu Limited

© 2019 Deloitte Touche Tohmatsu

Contact details

Natasha Doherty – Engagement Partner

Ph: 07 3308 7225; 0402 458 607

E: [email protected]

Natasha Doherty Partner, Deloitte · Deloitte Touche Tohmatsu and its affiliates provide audit,...

Documents

Transcript of Natasha Doherty Partner, Deloitte · Deloitte Touche Tohmatsu and its affiliates provide audit,...