Study Finds Refugees Experience Job Downgrade Years After Settling in Australia

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A decade after arriving in Australia, many refugees who were working as managers and professionals in their home countries are still struggling to find the same level of work.

They are experiencing an “occupational downgrade”, according to a new report by the Australian Institute of Family Studies (AIFS).

The findings add to existing knowledge about the challenges refugees in Australia can face in gaining a foothold in the labour market.

Lead author of the report, John van Kooy, told SBS News: “We looked at the jobs they were doing before they arrived in Australia and the jobs they’ve been able to secure, or go for, in Australia over that 10-year period. What we found was a major drop off.”

“We’re calling it occupational downgrading, which basically means for those that were working in professional and managerial roles prior to coming to Australia — in sectors like business, human resources and IT — many of those individuals, even after 10 years of permanent residency in Australia, weren’t able to find the same level of employment or occupational status,” van Kooy said.

Around 2,400 humanitarian migrants were surveyed over a 10-year period from when their first visas were granted in 2013. Most of the participants were from Iraq, Afghanistan, Iran and Myanmar — reflecting the humanitarian intake that year.

It’s part of what AIFS cites as the largest longitudinal study of this cohort of migrants in Australia, capturing post-humanitarian arrival and settlement support over a longer term.

A starker ‘occupational downgrade’ for women

According to the study, 30 per cent of employed women and 19 per cent of employed men had worked in managerial or professional roles before arriving in Australia. That dropped to 17 and 10 per cent respectively after 10 years of residency.

Only half of the men working in their home country in business, human resources, marketing and ICT (information and communications technology) were working as technicians, tradespeople or machinery operators after a decade of residence in Australia.

The “occupational downgrade” was starker for women.

Over two-thirds (67 per cent) of women who had been managers or professionals in their home countries were not in paid work in Australia. The remaining women were mostly carers, cleaners, education aides or sales assistants.

Van Kooy said women who were part of families with children under five years old were 84 per cent less likely to be in employment compared to men over that period.

The study found 39 per cent of women and 63 per cent of men were in the labour force 10 years after arriving in Australia. Of those that weren’t, 33 per cent and 41 per cent indicated they wanted a job.

He said refugees can face various challenges, including language barriers — with those who were quickly able to acquire English language skills being more able to enter the labour force earlier — along with the recognition of skills and qualifications in Australia.

A ‘billion-dollar benefit’

The AIFS study references a 2024 report from Settlement Services Australia (SSI), a national not-for-profit service provider, which estimated the country’s economy would benefit from a $9 billion annual boost if migrants and refugees worked in jobs that matched their full skill set.

Dane Moores, SSI’s head of strategic relations, said almost half of permanent migrants in Australia work below their skill level — and humanitarian entrants were more likely to have their skills underutilised.

“Many refugees arrive in Australia with years of professional experience and valuable skills, but they face a system that devalues their expertise and puts up unnecessary roadblocks to formally recognising their qualifications,” he said.

“In addition to having remarkable personal qualities like resilience and determination, professionals from refugee backgrounds bring skills we urgently need — in health, education, engineering and more. Yet many of these skills are currently being wasted.”

Van Kooy said the skills and qualification recognition system in Australia has improved, but “there is still work to be done”.

‘We’re all losing out’

Van Kooy said the new study shows a “significant number” of refugees who come to Australia with high skill levels, experience and qualifications — along with the time it can take to break into the labour market.

“Any time we under-utilise those qualifications, or those individuals aren’t able to access the same level of employment or pursue their career aspirations, then we’re all losing out,” he said.

“It is a long-term investment, and a long-term journey that we need to be going along with people.

“Settlement is not something that happens in a two to three-year period, just after people arrive. It’s a lifelong experience, and I think we need to work with that timeframe in mind.”

Acknowledging refugees have a diverse range of experiences and backgrounds, van Kooy said many show personal resilience in their journey to Australia.

“Refugees have been through traumatic journeys — often prolonged time spent in transit countries or camp situations. By the time they arrive in Australia, they have that accumulation of experience and resilience that can be an asset in terms of the economy,” he said.

“It can also lead to difficulties for individuals who have experienced traumatic events.”

Nevertheless, van Kooy said over one-fifth of the study participants started their own business or ended up in self-employment over the 10-year period, which is higher than the rate of self-employment for the Australian-born population.

This could partly be due to difficulties in accessing the open labour market.

“But it does show that the refugee cohort is resilient, and they will do what they need to do to earn income and support their families, and get ahead in Australia.”