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2 Jul 2025 4:28
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  •   Home > News > International

    Almost half of refugees suffering from 'occupational downgrade' 10 years after settling

    New research shows almost half of refugees previously working as managers and professionals are, 10 years later, still experiencing what's known as an "occupational downgrade".


    Engineer Sam Matti worked at a power plant in Baghdad, helping maintain electricity to the war-torn capital of Iraq.

    But he fled after the Islamic State group threatened him, putting his life and career on hold.

    He spent two years in a refugee camp in Turkey before finally resettling in Australia in 2015.

    "As an automation engineer, I was really hopeful to find something in my field in Australia," he said.

    But his engineering bachelor's degree from Iraq was not recognised in Australia, and instead he spent the next two years working in casual jobs, cleaning construction sites and catering at aged care homes.

    "You feel disheartened," he said.

    "You want to contribute, you want to build your life, but there are a lot of barriers that you have to overcome."

    Sam's story has been echoed in a new report from the Department of Social Services' Australian Institute of Family Studies (AIFS).

    The report found that after arriving in Australia, most refugees struggled to have their skills and qualifications recognised.

    Before arriving in Australia, 30 per cent of women and 19 per cent of men worked in managerial or professional roles.

    But after a decade of residency in Australia, those figures dropped to 17 per cent and 10 per cent respectively.

    'Occupational downgrade' rife

    Lead author Dr John van Kooy said the study aimed to uncover how long it took for refugees to make the transition into employment and what kinds of jobs they eventually found.

    "What we observed in the study is 'occupational downgrading'," he said.

    "This means people had managerial or professional roles, white-collar jobs in business, human resources, marketing or IT — in their home countries, but they have been unable to reach that same occupational status or even a similar occupational status even after 10 years of permanent residency in Australia."

    For refugee women, the downgrade was even more pronounced.

    Among those who had been managers or professionals in their home countries, more than two-thirds (67 per cent) were not in paid work after 10 years of living in Australia.

    The remainder were mostly working as carers, cleaners, education aides or sales assistants.

    About 2,400 humanitarian migrants were surveyed over a 10-year period — starting when their first visas were granted in 2013 — as part of the study.

    37,000 workers with untapped skills

    A 2024 report by national not-for-profit service provider Settlement Services International found there was potential for a "billion-dollar benefit" in the employment of refugees and other migrants whose skills were thought to be chronically under-utilised.

    "There are around 37,000 refugees in Australia right now … working below their level of skill and qualification," said Dane Moores, SSI's head of strategic relations.

    "Almost every industry at the moment in Australia is suffering from skills shortages. We've got stagnant productivity and yet here is this tremendous talent source of refugees working below their skill level, which if we tapped into, could help address all of these skill shortages."

    The daughter of Vietnamese refugees, Nhi Tran moved to Australia in 2017 after studying business and customer service.

    She worked for eight years in operations and sales roles in both France and Vietnam.

    Despite her experience, finding work here became challenging and her university qualifications were not recognised.

    Ms Tran, now 36, worked for two years in hospitality for less than the minimum wage, shattering her confidence.

    "Especially when in your home country you already have manager work experience and you move to a new country trying to give you a different perspective and more opportunities," she said.

    "I don't complain about it because I understand if you face [a] language barrier, it's very hard for employers, but it deeply affects your confidence."

    'Give people a chance'

    According to Mr van Kooy, a surprising outcome from the AIFS report was the impact of social connection.

    "We found that participants who had friends from a mix of ethnic backgrounds — diverse friendship groups — were more likely to be employed than those who only had friends from their own ethnic background, or no friends," he said.

    The report recommended more coordinated recognition of skills and qualifications gained overseas, as well as inclusive recruitment practices and language support.

    Mr Matti, whose skills have become better utilised in his current job as an infrastructure project manager with Australia Post, said simplifying the path for refugees could make things easier.

    "Some of the skills and the experience locally is so meaningful and so important, but people with overseas qualifications also have experience," he said.

    "A bridge is a bridge … there are basic principles everywhere you go.

    "Give people a chance."


    ABC




    © 2025 ABC Australian Broadcasting Corporation. All rights reserved

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