Australia’s recent migrants now constitute a significant and growing share of the country’s workforce, contributing across a wide array of sectors and playing a crucial role in addressing labour shortages amid historically low unemployment, according to an analysis of official data by the Australian Industry Group (AIG).

Since 2022, migrants have made up approximately 6 percent of the workforce, around 220,000 workers, compared to 4.5 percent prior to the COVID-19 pandemic. This increase reflects a peak in new migrant arrivals in 2023 and highlights their growing importance to the Australian economy. Employer groups have expressed concerns over current political debates about reducing migration intake, warning that such moves could exacerbate labour shortages and hinder economic growth.

The AIG’s chief economist, Jeff Wilson, emphasized that migrants represent an essential component of the labour supply, filling vacancies that might otherwise remain unoccupied in a market with low unemployment. The analysis points to government shortcomings in managing infrastructure and services to accommodate population growth as a significant factor behind rising community tensions, rather than the migration intake itself.

One notable finding from the AIG’s briefing is the high level of educational attainment among recent migrants. Nearly 58 percent hold university qualifications—almost double the 33 percent rate among Australian-born workers. This trend reflects both undergraduate and postgraduate accomplishments, with recent migrants also surpassing long-term migrants in educational levels. This suggests that migrants not only supplement the workforce in quantity but also enhance its overall skill base.

This educational advantage underpins the strong presence of migrants in knowledge-intensive and professional sectors such as information and communications technology, engineering, healthcare, and professional services. At the same time, migrants are pivotal in labour-intensive sectors including hospitality, food services, cleaning, and care industries. For example, recent migrants make up 21 percent of food trade workers, 17.2 percent of cleaners, and 14.5 percent of hospitality workers.

In addition, migrants contribute significantly to construction and manufacturing, sectors that have seen a gradual increase in migrant participation over the past decade. According to the data, recent migrants comprise roughly 5 percent of the manufacturing workforce and 4.7 percent of the construction sector.

AIG CEO Innes Willox underscored migrants’ critical role in supporting nationally important projects, noting that skilled migration pathways are essential to delivering housing, industrial development, technology advancements, and care services, especially as Australia’s population ages. He warned that restricting migration based on politically motivated net overseas migration targets risks causing greater harm to the country’s labour market and economic prospects.

Overall, the evidence highlights the multifaceted contributions of migrants across the Australian economy, challenging simplistic or politicized views that overlook their role in both skilled and labour-intensive occupations essential for sustained growth and service delivery.