Australia’s Skills in Demand Visa Postponed: Impact on Skilled Immigrants and Employers as TSS Work Experience Requirement Reduces
The introduction of much-needed Skills in Demand Visa was one of the most awaited migration programs targeting skilled workers across the economy. It is supposed to replace the current Temporary Skills Shortage Visa (482 visa). The idea was floated last Dec 2023 and scheduled to be operational by 2024 when such crucial spots in all industries that lacked sufficient supply due to dire labor shortages. However, it would have been best if circumstances hadn’t otherwise delayed its execution. This news has prompted reactions in all sectors including businesses ready to fill skills gaps and professionals seeking new career prospects. Here in this blogpost, we will explore what it means to you as a skilled worker, an employer, and the labor market.
What is a Skills in Demand Visa?
Let’s review what the Skills in Demand Visa is again. It is one of the new immigration pathways as part of the migration strategy for attracting highly skilled workers to fill labor shortages in key industries. It was designed to provide a quicker and more efficient route for professionals with expertise in areas such as technology, healthcare, engineering, and construction. This visa was expected to simplify the hiring process for businesses and reduce the skill gaps that are currently affecting various sectors.
Employers would benefit from access to a broader talent pool while skilled workers would have the opportunity to live and work across Australia offering competitive wages, job security, and high-quality living standards. The visa would also support the economy by bringing in talent that could contribute to Australia’s economic growth and innovation.
Reasons for the Delay
While the Skills in Demand Visa was initially supposed to launch in late 2024, a number of factors have pushed back its launch. Among these factors are:
- Regulatory and Administrative Challenges: Creating a new immigration program requires considerable planning and coordination between government departments such as immigration, labor, and industry stakeholders. It appears that regulatory complexities have delayed the development of the necessary frameworks to ensure the program’s smooth operation.
- Industry Consultation: The government has stated that it will be engaging businesses, trade unions, and other stakeholders in consultation to ensure the visa works for the labor market. This consultation may have given way to changes in the structure of the visa causing it to further delay its introduction.
- Economic Uncertainty: Economic conditions might also have been subject to employment rate and market demand fluctuations making the timing of introducing such a visa questionable. The government has probably reconsidered this introduction so as to know when the economy can comfortably take up all the professionals.
- Political and Public Opinion: Immigration policies are always under the scrutiny of various political and public groups. With the continued debate surrounding immigration and workforce policies, the government may have felt that it needed more time for the program to be well taken and sustainable in the long run.
Effects on the Skilled Workers
For the skilled workers who were looking forward to apply for the Skills in Demand Visa, this delay is frustrating. Many skilled professionals with expertise in a high-demand sector such as IT, healthcare, or engineering may have been finalising their applications or indeed already making plans to migrate for work. They could be forced to reassess their timelines and reconsider alternative immigration pathways or work opportunities in the meantime.
While waiting for the full launch of the Skills in Demand Visa, these employees may utilise this waiting time to search for other visas or even other job openings. There are other similar immigration avenues that you can explore to gain work experience with the anticipation of applying later for this visa when launched. This kinds of changes do happen. So it is recommended to speak with our expert migration and education agents to provide you with more options.
Impact on Employers
The impact of this delay will also be felt by the employers especially in sectors that experience acute talent shortages. The visa was made to ease the process of employing skilled workers from other countries. It will allow the company to gain the skills required to compete and expand in the market. Delaying it may require the companies to find alternative means to deal with the shortage of manpower, such as:
✔️Invest in Training and Development: They may have to train the existing workforce. This could involve offering training programs that target specific skills that the industry needs. It may help bridge the skill gaps until the skilled workers are brought in from other countries.
✔️Exploring Alternative Immigration Pathways: During the delay of the Skills in Demand Visa, companies can explore other immigration pathways to hire skilled workers.
✔️Hiring from Domestic Talent Pools: Given the extended waiting time, the company might be compelled to hire from the domestic labor market for strategic positions. This would involve sifting through candidates who may not possess the required skills for the business but can be trained quickly and effectively.
What’s Next?
TSS Visa’s Reduction of Work Experience Requirement
With the delay in the roll-out of the Skills in Demand Visa, you may need to look back into Temporary Skill Shortage (TSS) visa. This visa is used to fill important areas such as health care, engineering, and IT. Many TSS visa holders are able to transition to permanent residency through the Employer Nomination Scheme (ENS) or other pathways after a few years of employment. Recent news update said that the Australian government is shortening the work experience requirement from 2 years to only just 1 year. Although this is still pending in Parliament discussion, the visa still stands out as a better way for workers to go for their opportunities in Australia and the Skills in Demand visa might start only in few months of 2025. As a result, if you are a skilled professional looking to relocate to Australia in the short term may find that the TSS visa offers a viable alternative while waiting for the Skills in Demand Visa to be introduced next year.
How the Delay Affects Employers Using the TSS Visa
For Australian employers, that means they will probably carry on using the TSS Visa to fill skill gaps across their workforce. The TSS visa allows businesses to sponsor workers in occupations contained in Australia’s Short-Term Skilled Occupation List (STSOL) and Medium- and Long-Term Strategic Skills List (MLTSSL), important sectors such as healthcare and construction, and information technologies. The TSS visa, of course, requires employers to meet certain labor market testing requirements and prove that they are unable to find the suitable local workers. However, it remains an essential tool for businesses struggling to find talent. This reliance on TSS visa, the companies may have to adapt and refine their approach of recruiting people, especially targeting the international talent pools, in order to get sufficient candidates in critical sectors once the new visa program gets delayed.
The positive influence, in the meantime, lies with the skilled workers and employers, who have to make adjustments and look around for other opportunities while we are nearing the revised release date. Once the visa is finally launched, hopefully in early 2025, its effects on labor shortages would be immense and business opportunities would open up equally.
We look forward to further updates on the Skills in Demand Visa as more information is revealed on the government’s intentions of implementing it during the next fiscal year. In the meantime, if you are looking to explore more visa options for you, do not hesitate to contact us here at Pathway to Aus.
