The federal government's rhetoric of "Australian jobs first" which accompanied its announcement to abolish the 457 visa is not matched by the policy detail.

In fact, the core problem which has dogged the 457 visa is being carried over to the government's new system – employer-conducted labour market testing.

The new system will incorporate two new visa streams for which employers can access temporary skilled workers. For this visas, the government will rely on employers to provide evidence of failed recruitment efforts in order to ensure that local workers have been given an opportunity to apply for job vacancies.

This approach has been discredited because it doesn't stop unscrupulous employer from accessing temporary migrant workers to replace local workers. Employer-conducted labour market testing is an ineffective and extremely resource-intensive measure that cannot properly identify genuine skills gaps in the Australian labour market.



The problem with relying on employers to provide evidence of where skill shortages exist in the economy is that the national interest does not always match up with what is in the interest of employers. Under the government's new scheme, all an employer will have to do is to prove they have tested the labour market by advertising locally. They will submit this documentation to the Department of Immigration who will then have the responsibility of verifying whether the employer-conducted labour market testing requirement has been met.