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Will an Australian degree lead to a skilled job? What a federal study found

Tips · 2026-10-07 · 3 min read

Many students hope that a degree from Australia will lead to a good job there. A new federal government report gives a careful answer. It found that more than half of international graduates in Australia work below their skill level. This means their job needs less skill than their qualification shows. Let us look at the main points in simple words.

About the study

The study is called the International Students Pathways and Outcomes Study. It was published in September 2025. It followed students who started study in Australia in 2010-11. It tracked what happened to them until the end of 2023. It looked at policy only up to the end of 2023. That is before the changes in the federal government's Migration Strategy. So these are results from the past.

Did they stay?

Some did. About 35 to 40 per cent of the students who began in the early 2010s gained permanent residency within 10 years. For higher education and vocational graduates who could be found in tax and employment data, the number was higher. More than half gained permanent residency within a decade.

Did they get skilled jobs?

Often they did not. Look at these results.

• More than half of international graduates with qualifications at the highest occupational skill level worked in lower-skilled jobs.
• Only about 20 to 30 per cent of Australian graduates worked below their qualification level.
• International graduates were less likely to work in the field they studied. This was more true for higher education graduates than for vocational education and training (VET) graduates.
• On average, international graduates earned less than Australian graduates with the same qualifications.

Why does this happen?

The study named several barriers.

• English-language skills
• Little practical work experience in Australia
• Employers who are unsure about temporary visas
• Difficulty having overseas experience recognised
• Bias in recruitment
• Some employers think international graduates are less ready for work

Why is this important?

Australia sees international students as a possible source of skilled workers in areas of shortage. International education also added more than $50 billion to the Australian economy in 2023-24. The study says graduates who stay could help the future workforce. But poor transitions into skilled jobs limit this. The government keeps a planning level of 295,000 new international student commencements for 2026 and says it will keep that level in 2027.

What can you do?

You can prepare for some of these barriers. Practise your English every day, and plan an IELTS or PTE test if you need one. Choose a course that includes practical experience. Learn how your Vietnamese degree or vocational certificate may be assessed again abroad. Keep certified English translations ready too. Be careful with anyone who promises a skilled job or visa for money. Deal only with licensed organisations and real employers. Never pay an unlicensed broker.

#study #graduates #australia #skilled jobs #vietnamese students #permanent residency