Skilled migrant visas up by 24pc

AUSTRALIA is continuing to look offshore for solutions to the deepening skills crisis, with new figures showing the controversial 457 visa program for temporary skilled migrants grew by almost a quarter last year.

Figures released by the Immigration Department yesterday showed the number of primary 457 applicants jumped from 46,680 in 2006-07 to 58,050 in 2007-08 -- about 24 per cent.

A total of 110,570 temporary work visas were issued to workers and their dependents, an increase of 27 per cent.

The figures show that Australia relies on overseas economies -- increasingly in the developing world -- to recruit doctors, nurses, IT professionals and construction workers.

While NSW remained the biggest user of the program, importing 24,480 temporary skilled workers, Western Australia became the program's second-biggest patron, recording a 41 per cent rise in applications.

The figures showed the average salary for a 457 visa-holder increased slightly to $73,100, up 2per cent on last year and well above the average Australian salary of about $55,000. In some categories, such as mining, salaries for foreign workers have risen considerably from $95,200 in 2007-07 to $103,700.

Health and community services workers were the most sought-after professionals, with 9090 visas issued. They were followed by property and business services workers (6020) and construction (5690).

Overall, 81 per cent of visa holders were employed in professional occupations or in highly skilled jobs.

But labour market analyst Bob Kinnaird said signs were emerging that the program was a source of cheap labour.

He pointed to the low salary rates for tradespeople in resource-rich WA and Queensland, where workers could expect to command higher salaries.

But in Queensland, the average salary was $48,800 and in WA it was $53,200 -- considerably below the 2006 market wage of $57,500 for locals.

Immigration Minister Chris Evans said while some foreign workers had been mistreated under the program, the 457 scheme was not becoming a source of cheap labour.

He said the minimum salary of foreign workers would rise by 3.8per cent next month.

Britons were the biggest users of the program, with 13,110 visas issued. Indians were the second-largest group (8250).