New research has raised concerns about the financial pressures faced by thousands of migrants and refugees during their early years in Australia, despite the country’s broader record of strong employment outcomes among newcomers.
The study, produced through the Poverty and Inequality Partnership between the Australian Council of Social Service (ACOSS) and UNSW Sydney, examines employment, income and poverty among migrants and refugees during their first decade in Australia.
While the research found that migrants generally record relatively strong employment outcomes and lower poverty rates than some other population groups, it also identified major differences based on visa status and migration pathway.
People arriving through skilled migration programs recorded the strongest employment outcomes and the lowest poverty rates. By contrast, those entering under humanitarian, family and student pathways were found to face considerably greater financial difficulties.
The report, titled The First 10 Years: Employment, Income and Poverty Among Migrants and Refugees in Australia, highlights the impact of restrictions on access to government income support, particularly for newly arrived permanent residents.
Dr Yuvisthi Naidoo of UNSW’s Social Policy Research Centre said the Newly Arrived Residents Waiting Period was an important factor contributing to financial hardship among some migrant families.
Under the policy, many newly arrived permanent residents can be prevented from receiving most income support payments for as long as four years. The restriction can also affect people who previously lived and worked in Australia on temporary visas before gaining permanent residency.
The research found that family migrants within their first four years of permanent residency had unemployment rates of 5.7 per cent among men and 6.7 per cent among women. More than 75,000 people could potentially be affected by income-support waiting periods, according to the report.
Women arriving through family migration pathways face particularly significant barriers to employment. Among women aged 25 to 44, 33.2 per cent were outside the labour force, compared with an overall rate of 20.8 per cent.
The situation was more difficult for people arriving under humanitarian programs. Around 60 per cent of humanitarian entrants were living in poverty during their first year in Australia, while about two-thirds of refugee children were living close to the poverty line, with household resources of less than $500 a week.
The report also found notable differences among temporary visa holders. Skilled temporary migrants recorded a near-poverty rate of just 1.3 per cent, while international students experienced poverty and near-poverty rates of 13.7 per cent and 17.6 per cent respectively.
ACOSS chief executive Dr Cassandra Goldie said current settings could leave migrants without adequate financial protection when they encounter difficulties while establishing themselves in Australia.
She argued that additional financial and employment assistance was particularly important during the early settlement period.
Goldie also pointed to the challenges facing refugees, who have immediate access to income support but continue to experience high levels of financial hardship because of inadequate payments and difficulties entering the labour market.
According to the research, employment among refugees can improve significantly during their first decade in Australia when appropriate support is available.
Goldie said migrants make important contributions to Australian society as workers, family members, volunteers and community leaders, but warned that those who encounter financial difficulties can be left without sufficient assistance because of waiting periods.
The report recommends reducing existing waiting periods for income support and increasing financial and employment assistance for refugees and other vulnerable migrant groups.
UNSW Vice-Chancellor and President Professor Attila Brungs said migrants and refugees had played an important role in Australia’s development, but the research showed that the benefits of migration were not experienced equally.
He said the findings demonstrated the need to remove barriers that can expose newcomers to poverty during the crucial early stages of settlement.
Professor Verity Firth AM, UNSW’s Vice-President for Societal Impact, Equity and Engagement, said better understanding of the gaps facing different migrant groups could help policymakers develop more effective settlement programs.
She said targeted investment in settlement services, workforce participation and social protection could significantly improve outcomes, particularly for refugee families.
The research adds to growing calls for migration policies to consider not only how newcomers enter Australia, but also the financial and employment conditions they face once they begin building their lives in the country.