Published: August 2025 by Jobs and Skills Australia (JSA)
A new report by Jobs and Skills Australia (JSA) has shed light on how international students navigate education, work, and migration pathways in Australia. The International Students Pathways and Outcomes Study examines data from 2011 to 2023 to better understand how international graduates contribute to the nation’s workforce—and the challenges they face along the way.
The Evolving International Education Landscape
Australia remains one of the world’s most attractive study destinations, ranking second among OECD nations for international student enrolments. Over the past decade, the sector has evolved significantly:
- Source countries are diversifying, shifting from China to South Asia and beyond.
- Vocational Education and Training (VET) enrolments are growing, reflecting strong interest in trade and technical pathways, though higher education remains dominant.
- Many students now pursue study as a pathway to migration, with longer course durations influencing work and visa decisions.
Pathways to Permanence
JSA found that many international students stay in Australia long after graduation, often transitioning through multiple temporary visas.
- The Temporary Graduate visa (subclass 485)—particularly the Post-Study Work stream—has become the most common post-study visa for higher education graduates.
- VET graduates face narrower options, often restricted by eligibility criteria tied to skills shortage lists.
- Nearly half of international students remain in Australia 10 years after study commencement, contributing to the permanent migration program despite limited direct pathways to permanent residence.
However, these pathways can lead to what policymakers have called “permanent temporariness,” where graduates cycle through temporary visas without secure long-term outcomes.
Employment and Skills Outcomes
While international education fuels Australia’s economy, graduate employment outcomes are mixed:
- More than 50% of international graduates work below their skill level.
- Employers cite language proficiency and limited local work experience as key barriers.
- Students often prioritise paid work over unpaid placements, affecting participation in work-integrated learning (WIL).
JSA’s data show that courses with mandatory WIL components yield better job readiness—but more than 70% of international students are enrolled in courses without such requirements.
Barriers to Skilled Employment
The report highlights several persistent barriers:
- English language gaps limit employability and confidence in professional settings.
- Limited access to supervised placements hinders work experience opportunities.
- Employer hesitation toward temporary visa holders reduces access to skilled jobs.
- Financial pressure forces many graduates into low-skilled or exploitative work arrangements.
Recommendations for Reform
To strengthen outcomes for both students and Australia’s workforce, JSA made 11 recommendations, including:
- Develop shared national objectives linking international education to workforce needs.
- Publish performance data on international education providers and graduate outcomes.
- Review study-to-work pathways, particularly for VET students, to align with persistent skills shortages.
- Enhance English language assessment and integrate it into entry and exit points of study.
- Expand work-integrated learning and incentivise employer participation.
- Promote employer awareness of the long-term value international graduates bring.
The Bigger Picture
The study emphasises that international students are vital to Australia’s labour market, migration system, and economic resilience. With better coordination across education, employment, and migration policies, Australia can ensure that international education continues to deliver skilled talent for the nation’s future needs.
Source: International Students Pathways and Outcomes Study | Jobs and Skills Australia