How would One Nation’s immigration plan affect the labour market and economy?
Reducing the number of people on student and graduate visas may reduce migration numbers, but it could also weaken demand for Australian goods and services.
One Nation's proposed immigration plan would drastically reduce the number of international students and temporary graduate visa holders in Australia, aiming to bring the number of temporary migrants to less than one-sixth of the current population over three years. This reduction would primarily impact the labour market, as these individuals currently fill various roles across industries such as professional occupations, hospitality, retail, health, and aged care.
Census data from 2021 indicates that 88% of temporary graduate visa holders were in the labour force, working in diverse sectors, including business, human resources, marketing, IT, engineering, science, food and hospitality, retail, and health professions. The reduction of temporary graduate visas by 85% would significantly diminish the labour pool available for businesses, potentially exacerbating existing labour shortages, especially in regional Australia, where employers already face higher vacancy rates.
Furthermore, international students contribute significantly to Australia's economy. As of 2025, international students generate almost A$55 billion in export income, playing a crucial role in sectors such as accommodation, hospitality, retail, tourism, and transport. Their employment prospects are vital in determining their decision to study in Australia, with employment rates standing at 63.6% for student visa holders.
The reduction in international students' opportunities could make Australia less attractive to prospective students, impacting the economy through reduced demand for goods and services, diminished skilled workforce development, and potential job losses.
While One Nation's plan claims to alleviate pressure on housing and essential services, the economic implications suggest that such a drastic reduction in migrant populations could weaken demand for Australian goods and services, deepen labour shortages, and potentially harm Australia's skilled immigration sector.
Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
