INTERNATIONAL EMPLOYMENT OUTCOMES WHERE ARE THEY NOW?
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1 INTERNATIONAL EMPLOYMENT OUTCOMES WHERE ARE THEY NOW? A NATIONAL STUDY BY AUIDF
2 ABOUT THE STUDY In 2015, the Australian Universities International Directors Forum (AUIDF) commissioned a study to examine the employment outcomes of recent international graduates from Australian universities. The study aimed to collect information on the early employment trajectory of international students and their success in the labour market. Data was also collected on overall satisfaction with education in Australia and their Australian university in the context of their employment outcome. Participating institutions represented 32 members of AUIDF, with representation from all states and territories and all institutional groups. The survey was sent to graduates of bachelor and master coursework degrees who had completed their studies between 2012 and Two cohorts provided a focus for the study: graduates completing in 2012 and These cohorts represented the groups immediately before and after the introduction of post-study work rights for international students in Australia. Overall, 3,821 completed surveys were received which equates to approximately 5 per cent of the target population of 72,000 graduates. Limitations This report and accompanying infograph uses survey data that was selfreported by respondents and the results should be considered against the normal limitations of self-reported data. The findings also rely on descriptive statistics and, therefore, statistical significance has not been tested at this stage. Further analysis may be undertaken in the future. This study was commissioned by the Australian Universities International Directors Forum (AUIDF) through the Research Working Group comprised of Melissa Banks, Oliver Fortescue and Carmel Murphy. The survey was conducted by the QS Intelligence Unit in This report was written by Davina Potts and published by the International Education Association of Australia (IEAA) in July Suggested citation: Australian Universities International Directors Forum (2017), International Employment Outcomes: Where are they now? Melbourne, Australia: International Education Association of Australia (IEAA).
3 OVERVIEW OF RESPONDENTS The profile of respondents was broadly consistent with international student enrolment in Australia. Respondents represented 143 nationalities. The 10 largest source countries represented just under two thirds of the sample. These countries were, in order of magnitude: Malaysia, China, Singapore, Indonesia, India, Vietnam, Hong Kong, USA, Pakistan and Canada. Malaysia was over-represented in the sample, while China was under-represented. Figure 1. Top 12 respondents by nationality MALAYSIA 769 CHINA 669 SINGAPORE 390 INDONESIA 331 INDIA 292 VIETNAM 234 HONG KONG 175 USA PAKISTAN CANADA PHILIPPINES SRI LANKA Gender of the sample was balanced at 50.5 / 49.5 per cent, with females marginally higher. In terms of discipline of study, 38 per cent of the sample studied Management and Commerce, 13 per cent studied Health and 11 per cent studied Society and Culture. Engineering and Technology and Information Technology graduates were also well represented in the sample at 10 and 9 per cent respectively. More than 10 per cent of the sample received a scholarship from the Australian Government, while a similar proportion (9.9 per cent) received a scholarship from their home government. Overall, family funds were the most common source of funding for their Australian education, with 48 per cent of respondents selecting this option. 37 per cent of respondents were self-funded and 10 per cent used loans to fund their study. 5 per cent received a scholarship from their host university. Figure 2. Source of funding 50% 45% 40% 48% 35% 37% 30% 25% 20% 15% 20% 10% 5% 10% 2% 5% 3% 9% FAMILY OWN FUNDS LOANS EMPLOYER GOVT SCHOLARSHIP (Australian or home country) UNIVERSITY SCHOLARSHIP OTHER SCHOLARSHIP OTHER SPONSOR EMPLOYMENT OUTCOMES FOR INTERNATIONAL STUDENTS 3
4 EMPLOYMENT OUTLOOK FOR INTERNATIONAL GRADUATES As an indicator of labour market success, the data shows that international graduates of Australian universities are transitioning to the employment sector at comparable rates to Australian domestic graduates. The 2012 graduate cohort had been in the workforce for around three years at the time of the study. 79 per cent of respondents reported being in full-time employment, while a further 4 per cent were self-employed and 6 per cent were studying. Only 4 per cent of respondents reported being unemployed and seeking full-time employment. The data shows that international graduates of Australian universities are transitioning to the employment sector at comparable rates to Australian domestic graduates. To put this data in context, 3.4 per cent of bachelor degree graduates in the Australian workforce were unemployed in May Deriving a data set comparable to the Beyond Graduation Survey (BGS), which primarily reports on employment outcomes for Australian domestic bachelor degree graduates, the 2012 cohort of international bachelor degree graduates had an unemployment rate of 4.4 per cent. This compares with a rate of 5.6 per cent reported in the BGS (total seeking full-time employment) for domestic bachelor graduates who completed their studies in Although the data is now dated, in 2011 the reported unemployment rate for international graduates from UK universities three years after graduation was 6 per cent 2. Successfully transitioning from study to work takes some time, as evidenced by the results for the 2014 cohort. At the time of the study, 67 per cent of respondents were in full-time work, 3 per cent were self-employed and 8 per cent were studying. 10 per cent were unemployed and looking for work. According to the Australian Graduate Survey (2015) 3, 11.3 per cent of (primarily) Australian domestic graduates of bachelor degrees were still looking for work around four months after the completion of their studies in Although care should be taken when comparing these two reports, the data provides a general indication that graduate employment trends for international graduates from Australian universities are comparable with their domestic peers. Figure 3. Employment outcome by cohort EMPLOYED FULL-TIME 67% 71% 79% EMPLOYED PART-TIME STUDYING SELF-EMPLOYED UNEMPLOYED OTHER 7% 8% 7% 6% 8% 3% 8% 10% 3% 3% 0 10% 20% 30% 40% 50% 60% 70% 80% Total Class of 2012 Class of Australian Bureau of Statistics (2015), Education and work Australia 2 Department for Business Innovation and Skills (2012), Tracking international graduate outcomes Australian Graduate Survey (2015), Gradstats, Graduate Careers Australia EMPLOYMENT OUTCOMES FOR INTERNATIONAL STUDENTS 4
5 As a further illustration of the stages of transition to the workforce, the cohort analysis indicates a progression from fixed-term contracts to permanent contracts. While graduates from Malaysia, Singapore, Indonesia and India are more likely to obtain permanent contracts upon graduation, graduates from Vietnam, USA, Canada and Pakistan are more likely to be on fixed-term contracts for a period of time. Understanding structural differences in national labour forces can assist students in setting realistic expectations of post-graduation work opportunities and support study-to-work transition services in advising students. Understanding structural differences in national labour forces can assist students in setting realistic expectations of post-graduation work opportunities and support study-to-work transition services in advising students. WHERE ARE THEY WORKING? Half of employed respondents worked in four sectors: Education and Training, Finance and Insurance Services, Heath Care and Social Assistance, Professional, Scientific and Technical Services. A further 6 per cent were working in Media and telecommunications. Figure 4. Industry of current employment 61 per cent of the 2012 cohort were already working in middle management, senior management or in a directorial capacity at the time of the study. While only 41 per cent of the 2014 cohort were in similar positions, the data suggests that they may also rise quickly in their careers. EMPLOYMENT OUTCOMES FOR INTERNATIONAL STUDENTS 5
6 WHAT ARE THEY EARNING? The average annual salary, as reported by graduates, was AU$48,000. Salary levels are highly dependent on their current location. Salaries ranged between AU$92,000 for respondents working in Norway, to AU$8,200 for respondents working in Bhutan. Those who graduated in 2012 reported an average annual salary of AU$54,000 while respondents who graduated in 2014 reported an average annual salary of AU$42,000. On average, graduates of Australian universities who return to their home country are earning higher salaries than the average local salary 4. On average, graduates of Australian universities who return to their home country are earning higher salaries than the average local salary. WHERE ARE THEY NOW? The majority of international graduates from Australian universities return to their home country following graduation. Of the most recent cohort, just under 50 per cent had returned to their home country at the time of the study, while 43 per cent remained in Australia. A further 4 per cent had moved to a third country. Graduates from China, India and Pakistan are more likely to stay in Australia, while graduates from Indonesia, Singapore, Vietnam and Malaysia are more likely to return home. LOCATION AFTER GRADUATION COHORT IN AUSTRALIA 39.5% 43. AT HOME % IN 3RD COUNTRY 6.3% 4. UNKNOWN 2.6% 2. At the time of the study, 181 (5 per cent) were on a Temporary Graduate Visa. 893 (23 per cent) respondents had held a Temporary Graduate Visa for some time following graduation. Respondents indicated that they held a number of visa types including skilled, partner and student categories. 4 International Labour Organisation national average wage EMPLOYMENT OUTCOMES FOR INTERNATIONAL STUDENTS 6
7 DID STUDENTS USE CAREER SERVICES? Across the sample, 40 per cent of graduates reported using their university career services. This varied across nationalities, ranging from 62 per cent for Indian students to 15 per cent for Canadian students. Graduates were more likely to use career services if they stayed in Australia (56 per cent). The most commonly used services were CV writing workshops (63 per cent), career fairs (54 per cent) and drop in advice services (36 per cent). Overall, 70 per cent of graduates who used career services were satisfied with their university s collaboration with employers. SKILL DEVELOPMENT Respondents indicated a high level of satisfaction with skills developed through their Australian degree. Positive satisfaction levels ranged from a high of 93 per cent for English language proficiency to 91 per cent for teamwork skills, 88 per cent for interpersonal skills and 79 per cent for technology skills. Figure 5. Rating of skills development through their Australian education ENGLISH LANGUAGE PROFICIENCY PROBLEM SOLVING SELF-MANAGEMENT SKILLS TEAMWORK COMMUNICATION SKILLS PLANNING AND ORGANISING SKILLS DAILY TASKS INTERPERSONAL SKILLS TECHNICAL REQUIREMENTS INITIATIVE AND ENTERPRISE SKILLS SOFTWARE / TECHNOLOGY SKILLS 0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Although the results strongly support the strength of Australian universities in the development of critical employability skills, a focus on the development of technology and enterprise skills could further support graduates in their career transition in the future. EMPLOYMENT OUTCOMES FOR INTERNATIONAL STUDENTS 7
8 LEVELS OF SATISFACTION WITH STUDY IN AUSTRALIA Overall, respondents indicated a high level of satisfaction with their studies in Australia. Most importantly, in terms of the financial investment in obtaining an Australian degree, 81 per cent of respondents agreed with the statement My Australian degree was worth the financial investment. 88 per cent of graduates from Malaysia and Vietnam and 85 per cent from Indonesia agreed with the statement, indicating that an Australian education is very highly valued by alumni from these countries. When assessing their employability and readiness for the workplace, 84 per cent agreed that their academic units (subjects) supported skills development, and 80 per cent agreed that their university supported their skills development In terms of the financial investment in obtaining an Australian degree, 81 per cent of respondents agreed with the statement My Australian degree was worth the financial investment. and workplace readiness. Graduates from China, Malaysia and Vietnam responded most strongly to these statements; 26 per cent of graduates from Pakistan strongly agreed with the support their academic units provided for their skills development and workplace readiness. 79 per cent of respondents would recommend their university to potential international students and 37 per cent indicated that they would actively recommend their university. This active recommendation is even stronger from some nationalities, including 54 per cent of respondents from Pakistan, 45 per cent from Vietnam and 41 per cent from Indonesia. When asked if they would recommend Australia to potential international students, 78 per cent responded positively. 35 per cent would actively recommend Australia. While this result is lower than results from other satisfaction surveys 5, this is a strong result overall. Satisfaction rates were even higher in some key countries for Australian education: Vietnam 92 per cent, Indonesia 90 per cent, Malaysia 83 per cent and China 80 per cent. Overall, graduates were more likely to express satisfaction if they were employed at the time of the survey. STATEMENT % My Australian degree was worth the financial investment. 81% The content of my academic units developed my skills and readiness for the workplace. 8 My university developed my skills and readiness for the workplace. 80% I would recommend my university to potential international students. 79% I would recommend Australia to potential international students. 78% Having an Australian qualification means I can progress more quickly in my chosen career. 77% Having a qualification from Australia means I can command a higher salary than local graduates in my home country. 60% 5 Results from the International Student Barometer 2014 indicate that 87 per cent of current students (at the time of the study) were satisfied with their study experience. EMPLOYMENT OUTCOMES FOR INTERNATIONAL STUDENTS 8
9 Contact us IEAA Secretariat PO Box A Beckett Street Melbourne VIC 8006 Australia admin@ieaa.org.au ieaa.org.au
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