Study to stay: Report finds most international students miss direct permanent residency pathway

A recent report from Jobs and Skills Australia highlights that many international graduates encounter barriers to fully participating in the labour market and frequently earn less than their domestic counterparts. The study also notes that only a few have moved directly to permanent residency.

The International Students Pathways and Outcomes Study, released in August 2025, has examined the experiences, study choices and labour market outcomes of international students who began studying in Australia. Credit: Getty Images

The International Students Pathways and Outcomes Study, released in August 2025, has examined the experiences, study choices and labour market outcomes of international students who began studying in Australia in 2010-11 and subsequent years, tracking their progress to the end of 2023.  

The government’s latest study, which puts forward 11 recommendations to enhance opportunities for international students, observes that many graduates are not reaching the outcomes that could reasonably be expected of them.

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"More than 50 per cent of international graduates working in Australia are employed well below their skill level and many are working outside the field of their qualification," the report notes.

"On average, they are earning less than domestic graduates with the same

qualifications," it said.

A new report by Jobs and Skills Australia (JSA) has found that vocational education (VET) graduates are more likely than university graduates to work in roles aligned with their studies. Credit: gawrav/Getty Images

"International VET graduates are more likely to work in occupations and earn incomes that are aligned with their qualifications than their higher education student counterparts," the study notes.

Only a few international students on a Student visa (Subclass 500) have moved directly to permanent residency, with most instead depending on other, often multiple, visas after completing their studies.

"Many graduates who achieved a permanent residence visa required around 2 or 3 consecutive visas before they gained a permanent residence visa, with a smaller proportion going through 5 or 6 different visas before being granted permanent residence," the report said.

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Deputy Commissioner Trevor Gauld said, “There are some encouraging signs, but this study also finds that too many international graduates have faced barriers to participating fully in the labour market."

“Too often this is limiting the successful outcomes for students who remain in Australia and presenting a missed opportunity for Australian businesses."

The JSA report says that only a few graduates have been directly granted permanent residency, leaving many to rely on successive temporary visas. Credit: Epoxydude/Getty Images/fStop

“While the overall value of international students becoming permanent residents is huge, more than half of international graduates are employed below their skill level and earning less than their Australian-born counterparts which is a less than desirable outcome," he added.

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