Labor’s Immigration Policy Under Fire for Non-Skilled Worker Bias

(AUSTRALIA) Labor’s immigration policy is under fire from critics who say Australia is still bringing in the “wrong” types of workers, even as the government holds firm on a permanent migration program of 185,000 places for 2025–26 and promises a sharper focus on skills.

The criticism has sharpened in late 2025 as businesses complain of ongoing shortages in trades and key services, while some commentators argue that current visa settings are drawing in workers for lower‑priority roles instead of those needed to ease pressure in construction, healthcare, and other critical sectors.

Key critics and the main complaint

MacroBusiness Chief Economist Leith Van Onselen has become one of the loudest voices in this debate, accusing Labor of failing to properly match Australia’s workforce gaps. He argues that under the current immigration policy, Australia is importing too many workers for roles such as ride‑share driving while still struggling to find enough trained tradespeople and other hands‑on professionals.

The result, he says, is a system that looks strong on paper for “skilled migration” but doesn’t always deliver the skills employers most urgently need on the ground.

What the government is doing

At the centre of Labor’s approach is its decision to keep the permanent migration program unchanged at 185,000 places for the 2025–26 year, with nearly 70% of those visas reserved for skilled migrants. According to the government, this split shows a clear commitment to long‑term workforce needs and productivity.

Ministers have repeatedly stressed that migrants are essential in areas such as:

• Healthcare and aged care
• Construction
• Education
• IT

The remaining places are mostly for family reunion and humanitarian entrants, which Labor argues maintain social and international responsibilities.

Employer‑sponsored pathways and controversies

Employer‑sponsored visas remain a key part of the plan, especially the Skills In Demand (Subclass 482) visa, which replaced the old 457 visa as the main pathway for businesses to bring in overseas staff for jobs they cannot fill locally.

The Department of Home Affairs promotes this visa as a flexible tool to help employers respond quickly to skill shortages, and full details of eligibility and conditions are set out on the official Home Affairs skilled migration pages.

However, critics question whether the occupations actually being filled through these routes match what builders, regional hospitals, and other employers say they are crying out for.

The mismatch critics highlight

Van Onselen and others argue that the current mix of workers entering on temporary and permanent visas does not line up with national priorities. Their main points:

• Too many places go to jobs that could be filled locally with better training and wages.
• Too few visas are targeted at carpenters, electricians, plumbers, and other trades.
• The mismatch weakens public trust because people see busy city streets and crowded rentals but not enough extra nurses on wards or qualified tradies on building sites.

Points system review and regional incentives

The Albanese government has pointed to its ongoing review of the skilled migration points system as proof it is listening. Officials are examining whether current points for factors such as:

• Community language skills
• Regional study

should stay as they are, be trimmed back, or be redirected to reward qualifications and work experience in areas of confirmed shortage.

They are also weighing whether existing regional incentives are strong enough to send more skilled migrants to smaller cities and country towns, where employers often say they struggle the most to recruit.

Student visas and fee changes

Student visas form another politically sensitive part of the debate. Labor has announced plans to:

• Increase the student visa application fee from AUD 1,600 to AUD 2,000
• Implement tougher English language and integrity checks

The government argues this will reduce abuse of the system and slow growth in low‑quality courses, while still allowing genuine students to come. Education providers fear a hit to enrolments, but ministers have so far resisted calls for a strict cap, preferring more targeted controls on who qualifies for entry and post‑study work rights.

Regional adjustments and worker protections

To help employers outside the major capitals, Labor has promised looser rules on:

• Salary thresholds
• Skills assessments for certain regional roles

This is intended to make visas more realistic for smaller businesses that cannot match big‑city pay offers. Supporters in regional areas say this is vital for keeping hospitals, farms, and local services running.

However, some workers’ advocates worry that easier entry rules in the regions could create two tiers of protection, with migrant workers accepting poorer conditions because they fear losing their right to stay.

Government rationale and international context

Despite noisy protests and talkback anger about population growth, the government has mostly stayed the course on its immigration policy settings. Ministers argue that without a strong intake, Australia would struggle to:

• Build enough homes
• Staff aged‑care facilities
• Keep classrooms open in fast‑growing suburbs

They also point to global competition for talent, warning that countries such as the 🇨🇦 and the 🇺🇸 are pushing hard to attract skilled workers, and that Australia cannot simply step back without long‑term economic costs.

According to analysis by VisaVerge.com, this political tightrope between economic needs and public concern has become one of the defining tests of Labor’s broader economic agenda.

“Small shifts in which occupations qualify for priority processing, how regional concessions work, or how English tests are set can shape who comes to Australia and where they settle for years to come.”

Public debate: benefits and concerns

Public debate shows no sign of fading. Positions include:

• Supporters say migrants:
  • Boost tax revenue
  • Bring new ideas
  • Help offset pressures of an ageing population
• Critics say recent arrivals:
  • Place extra demand on housing, transport, and services
  • Contribute to feelings that Australians are being locked out of home ownership

The argument over whether the Skills In Demand (Subclass 482) visa and other channels are delivering the “right” workers has become a touchstone for wider worries about fairness, wages, and who benefits most from Australia’s growth.

What to watch next

As the review of the points system continues and the new student visa fees move closer to taking effect, detail will matter. Small policy shifts can have long-term consequences on settlement patterns and sectoral workforce supply.

For now, Labor insists its permanent migration program and employer‑sponsored routes remain essential tools. Its critics say the real test will be whether tradies, nurses, and teachers actually become easier to find—or whether complaints about the “wrong” workers continue to echo across the country.