Between Supply and Demand: Permanent Skilled Migration to Australia

Research on skilled migration has dealt overwhelmingly with the contribution of migration to productivity growth, to changes in the income of migrants and the factors influencing their employment. Much less attention has been paid to the institutional mechanisms that mediate between the external supply and the host-country demand for skilled labour, even though these play a vital role in the selection of such migrants. Australia has maintained a selective, highly regulated permanent skilled migration program for much of its contemporary history. This program contains both general and specific skilled entry. The former is not linked to any particular needs of individual firms or industries. Rather, in seeking some balance between supply and demand, entry is on the basis of general criteria such as the possession of a qualification recognised in Australia and English-language proficiency. Short-term imbalances between the supply of general skills and occupational demand have led to changes in entry criteria in response to labour market information and pressure from professional associations and trade unions. Specific skilled migration is closely tied to employer nominations. They cannot proceed unless certain institutional processes are met. The firm concerned must demonstrate that the required human capital cannot be found in Australia, that the position is in fact a highly skilled one, and that the firm has a training strategy for Australians.employer nominations, human capital, institutional mechanisms, productivity, skilled migration,