In the first part of this two-part blog, we found that Pacific migrants in Australia have incomes similar to those of migrants from non-Western countries but earn significantly less than Australian-born residents and migrants from Western countries. This income gap is partly due to Pacific migrants’ low labour-force participation. However, even among those who are employed, fewer Pacific migrants earn high incomes compared to other groups. In this second part, we examine working hours and occupations to explore this disparity.
According to Australian Census data, in 2021 an employed Pacific migrant worked an average of 34.8 hours per week, slightly less than Australian-born people and Western migrants (Figure 1). Non-Western migrants have the shortest work week (33 hours), with migrants from Nauru being the only Pacific group working fewer hours than that (32 hours).
The Australian Bureau of Statistics (ABS) organises occupations into five skill levels based on task complexity. Figure 2 highlights a stark contrast in occupational skill levels between Pacific migrants and other groups, leading to substantial earning differences. Only 27% of Pacific migrants are employed in the high-skill occupations (levels 1 and 2, for example, managers and professionals), while 60% work in lower skill roles (levels 4 and 5, for example, labourers).
In contrast, at least half of the employed Australian-born population, as well as Western and non-Western migrants, are in the top two skill levels. As of August 2024, the median hourly wage for skill-level-5 occupations was only $29.10, compared to $55.70 for skill level 1.
Table 1 reveals the top three occupations by share for each birthplace group. Pacific migrants are commonly employed as farm, forestry and garden workers, factory process workers, carers and aides, cleaners, laundry workers and storepersons. Farm, forestry, and garden workers make up nearly 60% of ni-Vanuatu migrants, 23% of Solomon Islander migrants and 12% of Tongan migrants. Carers and aides account for 13% of PNG migrants, 19% of i-Kiribati migrants and 10% of Nauruan migrants. In contrast, 11% of Western migrants are specialist managers, while 8% of non-Western migrants work as business, human resources and marketing professionals.
To sum up, while Pacific migrants in Australia work around the same hours as Western migrants and Australian-born workers, and slightly more than non-Western migrants, a much smaller proportion has advanced up the job-skill ladder and secured better earning outcomes. With the exception of Fijian migrants, a significant proportion of Pacific migrants is employed in sectors not commonly pursued by Australian-born workers and other migrant groups.
Further research is needed to identify the barriers preventing Pacific migrants from accessing jobs which require a higher level of skills and training and deliver higher wages. Addressing these barriers could improve their economic outcomes in Australia.
Read Part 1. Read the Understanding Pacific communities in Australia blog series.
Well done Dr. Nguyen.