Degree from an Australian university but stuck in a job below your skill level? What a national study found
News · 2026-10-07 · 4 min read
Does an Australian degree lead to a skilled job? Often, but not always. A federal study found more than half of international graduates working in Australia are employed below their skill level, pointing to a mismatch between education, migration and the jobs market.
What the study tracked
Researchers at Jobs and Skills Australia published the International Students Pathways and Outcomes Study in September 2025. They picked a group who began studying in Australia in 2010–11 and followed what happened to them until the end of 2023. Policy settings after that point, including the Migration Strategy changes, sit outside the data.
The main findings
| Area | Finding |
|---|---|
| Permanent residency | Roughly 35 to 40 per cent of the early-2010s starters became permanent residents inside 10 years. Looking only at graduates who could be traced in tax and employment records, the figure passed half |
| Skill level | Over half of international graduates whose qualifications matched the highest occupational skill level ended up in lower-skilled jobs; for local graduates the share was about 20 to 30 per cent |
| Field of study | Those who stayed were less likely to find work matching what they studied, a gap wider for university graduates than for vocational education and training (VET) graduates |
| Pay | Average earnings trailed those of local graduates holding the same qualification |
The barriers the study named
Some of the obstacles sit with the graduate and some with the employer. The study pointed to English-language proficiency, a thin record of practical Australian work, employers who feel unsure about temporary visas, overseas experience that is hard to have recognised, bias in recruitment, and a view among some employers that international graduates are less job-ready.
Why it matters now
Policymakers increasingly look to international students as a source of skilled workers in shortage areas. The sector added more than $50 billion to the economy in 2023–24, and the agency says graduates who remain could contribute a great deal, yet weak transitions into skilled jobs hold that back. The debate over numbers continues: the Government has set a national planning level of 295,000 international student commencements for 2026 and says it will keep that level in 2027, and the Education Department says commencements this year are down 8 per cent on the same period in 2025 and 13 per cent below 2019 levels.
Steps to close the gap before you graduate
- Build your English for work, not only for a test. PractiseNow covers IELTS, PTE and OET preparation.
- Look for practical experience connected to your course, so your CV shows Australian work.
- Present your overseas experience clearly. RPLDirect explains how qualifications and skills are assessed for Australia.
- Keep a tidy English CV, and consider Build AI CV to structure it.
- Read our posts on what the data says about migrating and the cost of turning away international students, and browse our jobs page to see how employers describe their roles.
Common mistakes
- Assuming a degree and permanent residency will automatically lead to a skilled job.
- Leaving English preparation until after graduation.
- Finishing a course without any Australian work experience.
- Not explaining overseas experience in terms an Australian employer recognises.
Questions graduates ask about the skills mismatch study
How many graduates gained permanent residency?
Roughly 35 to 40 per cent of the early-2010s group inside 10 years, and over half of the graduates who could be traced in linked records.
How does this compare with local graduates?
For local graduates the share working below their qualification level was about 20 to 30 per cent.
Did international graduates earn the same as locals?
No. Average earnings were lower than for local graduates with the same qualification.
Does the study reflect recent policy changes?
No. It examined policy settings only up to the end of 2023.
What is the planning level for student commencements?
The Government has set 295,000 for 2026 and says it will keep that level in 2027.
What to remember before you graduate
- More than half of international graduates in the study worked below their skill level.
- Permanent residency did not always lead to work in their field.
- Barriers included English, limited Australian experience and employer bias.
- The data stops at the end of 2023, before the Migration Strategy changes.
- Prepare English, experience and a clear CV before you graduate.
#graduate jobs #international graduates #skills mismatch #permanent residency #australia
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