Cap the Employability Gap, not international students

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“At the moment, only 16% of international students stay on after their studies end”, (Minister for Education Jason Clare, 2022). The idea that international students are stealing jobs and housing is a convenient myth. One that ignores the structural failures in our labor and housing systems.

Our recent report repositions the value of international education in Australia but also highlights the gaps of such a system for international Chinese students who choose to study in Australia and return home. Rather than narrowing opportunity, we should be widening outcomes.

Our report reveals a systemic failure to support international students’ transition from study to meaningful employment; including when they return home.

Our study, conducted with the support of the University of Sydney’s China Studies Centre, examined employer perspectives across both countries and found consistent frustrations.

Chinese students remain the largest international cohort in Australia, with nearly 190,000 enrolled in 2024 alone. But despite their contributions to our campuses, economy and communities, their post-study employment prospects remain bleak, both in Australia and upon returning to China.

Employability is no longer about just having a degree. It’s about job-readiness: the capacity to adapt, to communicate, to solve problems, and to navigate vastly different recruitment ecosystems. These are the skills that global employers demand, but which too many students lack, due to misaligned educational experiences and systemic underinvestment in career development learning.

Only 17% of the Australian companies we analyzed explicitly offer graduate pathways to international students. This statistic alone should give policymakers pause. Behind it lies a patchwork of vague work-right policies, unspoken visa hesitations, and narrow recruitment preferences. It’s not that Australian businesses don’t value international talent, because as our report highlights, they do. But they need clearer signals, better support, and stronger partnerships with education providers to convert international study into workforce participation.

Meanwhile in China, the “value” of an overseas degree is fast eroding. Employers are increasingly placing returned students and domestic graduates on equal footing, using culturally-specific criteria that prioritize internship experience, local credentials, and social networks. For Chinese international students, returning home often means starting again.

This double disadvantage is a global problem, which should concern us all.

The findings of our study suggest a clear policy pivot. Rather than capping numbers, we must cap the employability gap.

That starts with universities. International education cannot remain a siloed profit centre. Career development learning must be embedded across all degrees, from first year to final semester. Students need targeted, culturally- relevant support. Academics must be resourced to understand global labor market demands. And work-integrated learning needs to move beyond lip service into long-term, meaningful partnerships, especially with employers in students’ home countries.

Industry also has a role to play. From recruitment fairs to AI-led screening, hiring systems often exclude international candidates by design. Greater transparency, inclusive job descriptions, and collaboration with universities could transform this dynamic. These students are not just future employees, they’re bridges to international markets and innovation.

And government? Rather than constricting international education, it must lead a whole-of-system response to employability. This includes funding embedded career development services, adjusting visa conditions to allow more work-integrated learning, and incentivizing businesses to offer graduate pathways to domestic and international cohorts.

The idea that international students are stealing jobs and housing is a convenient myth. One that ignores the structural failures in our labor and housing systems. Our report re-positions the value but also gaps of such a system for international Chinese students choosing to study in Australia and often return home.

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