The subclass 457 General Skilled Migration (GSM) visa allows an approved employer to sponsor an overseas skilled person to fill a position in their business in Australia on a temporary basis. This program allows applicants to work for up to four years for a sponsoring employer and is restricted to people seeking to be employed in skilled occupations.  It remains the most popular visa subclass in Australia’s GSM program.

The 457 visa program began in 1996 and has undergone considerable changes since its introduction. The program has aimed to stay responsive to trends within the Australian labour market, and to support a growing Australian economy.

Australia’s Department of Immigration and Citizenship (DIAC) have released an official summary report on the usage and distribution of 457 visa applications and grants during the 2010-2011 program year, ending 30 June 2011.

Below is a brief summary of some of the more interesting data from DIAC's report. 

457 Visa Demand:

Demand for the 457 program had declined in 2009-2010 in response to the global economic downturn, and a subsequent reduced reliance on overseas workers. The 2010-2011 program year, however, has seen the demand for 457 visas increase significantly, with the number of people applying for a primary 457 visa up by 39.7% and the number of primary 457 visas granted rising by 38.2%.

This increased demand for 457 visas is a result of Australia’s current resource boom and a recovering economy, which has generated a rising demand in Australia for overseas skilled workers to temporarily fill vacant positions in Australian businesses.

Sponsors:

During the 2010-2011 program year, 11,290 employers from Australia and overseas were approved to sponsor 457 workers to fill positions temporarily in their Australian businesses. At the end of the program year (June 2011), Australia’s 457 visa program officially included 18,530 approved and active sponsors. It is interesting to note that most of these identify themselves as operating a small to medium business in Australia. 

Countries:

Over the 2010-2011 program year, the highest number of 457 visa grants were issued to skilled workers from the United Kingdom, with India and the United States following respectively. Interestingly, 457 visas applications from skilled workers in Ireland rose a significant 60.9% during the past year.

Locations:

The majority of 457 visa applications lodged during the 2010-2011 program year were for jobs located in New South Wales and Victoria, continuing the trend of the past few years. However, the number of 457 applications made for jobs in Western Australia rose by 64%, reflecting Australia’s acute skills shortage in the mining and resource sector and the dire need for skilled workers in this sector.

Positions:

The demand for 457 visas within the health industry was again solid this year, as it has been in years past. This industry received the highest number of 457 visa grants during the 2010-2011 program year, particularly in the occupations of social assistance and health care.

There was a large increase in 457 visa applications made for workers in the trade and technician occupation category, which was up 65.4% from the previous year. Within this category, 457 visas granted to individuals with electrical engineering skills was up 248.9% on the previous year, and the number granted to those with drilling skills rose by 152 %.

This sharp increase in 457 visa grants to overseas skilled workers in mining occupations can again be attributed to the expansion of mining and resource projects in Australia over the 2010-2011 program year.

Salary:

Overall, the median salary rate paid to all 457 employees has again increased during the 2010-2011 program year. In 2009, reforms to Australia’s migration program made changes to an employers responsibility in paying 457 workers, requiring that 457 workers be paid Australian market salary rates and work in conditions that are ‘no less favourable’ than Australian workers performing the same duties. Salary rates for 457 overseas skilled workers have risen steadily since that time.

457 skilled workers employed in mining occupations received the highest salaries of any industry in 2010-2011. This reflects the highly trained nature of this work and the acute demand for workers with these skills.

457 Visa Processing Times:

The 2010-2011 program year data shows a reduction in the processing time for 457 visa applications. The average processing time for a 457 visa application was 23 calendar days, which is a 30% reduction on the previous year. The 10% of 457 applications which took the longest to process reflected an average of 70 days to process, which again is down from the previous year where the average was 83 days. 

Conclusion:

DIAC’s report on Australia’s 457 visa program demonstrates robust growth and a responsiveness to economic and labour market conditions over the 2010-2011 year.

The 457 visa program is being increasingly used by Australian businesses to access overseas skilled workers to ameliorate labour shortages in the Australian economy.

DIAC believes the program will continue to be relied heavily upon over the next program year by employees seeking to fill vacancies in their businesses which they are unable to fill from within the Australian workforce.  DIAC have pledged further improvements to the program, specifically in the area of processing times.