The Albanese government's recent crackdown on international student numbers has already inflicted significant economic damage, costing the Australian economy $4.3 billion and threatening thousands of jobs in the education sector. As new figures emerge, the notion that international students are responsible for the housing crisis is being debunked, prompting universities to launch a renewed defense against this political narrative.
Economic Impact and Job Losses
Universities Australia, the peak body representing the sector, has revealed that the government's stringent limits on foreign student enrolments have resulted in a 23% decline in overseas enrolments over the past year. This translates to 59,410 fewer students, leading to an estimated loss of 14,853 jobs in the sector, with four international students typically supporting one job.
Luke Sheehy, Chief Executive of Universities Australia, has criticised both major political parties for using international students as "cannon fodder" in a politically charged debate on migration. He argues that this approach disregards the substantial economic contributions of international students, who accounted for more than half of Australia's GDP growth last year. The sector, valued at nearly $50 billion, supports around 250,000 jobs across various industries, benefiting businesses, government, and the education of Australian students.
The Housing Crisis Myth
Contrary to the claims that international students are exacerbating the housing crisis, new data from SQM Research indicates that vacancy rates are generally higher in suburbs with large numbers of foreign students. For instance, in Sydney's most popular suburb among international students, Chippendale, the vacancy rate stands at 2.5%, compared to the city's average of 1.4%. Similarly, in Melbourne, suburbs like the CBD, Carlton, and Clayton have higher vacancy rates than the city average. Brisbane follows the same trend, with higher vacancy rates in popular student suburbs compared to the city average.
Government's Position and Proposed Legislation
Education Minister Jason Clare has acknowledged the value of international education as a "national asset" and stated that the government aims to safeguard its future through reforms that ensure quality, integrity, and certainty for universities. The proposed legislation, which will be reviewed by a Senate committee, seeks to impose limits on every university, higher education, and vocational education provider that educates international students.
The government is considering using 2019 enrolment numbers as a baseline for further cuts, despite some universities advocating for a 35% flat cap on international students. Clare's discussions with university leaders indicate ongoing efforts to refine the proposal before it is presented to the cabinet.
Sector's Response and Future Outlook
Universities Australia continues to oppose the proposed caps, emphasising the detrimental impact on the economy and the higher education sector. Sheehy has called for a more nuanced approach that recognises the broad benefits international students bring to the nation.
The peak body's analysis of vacancy rates undermines the argument that international students are driving the housing crisis, suggesting that other factors are at play. As the sector braces for potential job losses and reduced revenue, there is a growing call for policies that balance migration controls with the economic and social advantages of a robust international education system.
The federal government's crackdown on international student numbers has sparked significant controversy, with universities warning of severe economic repercussions and job losses. The narrative that foreign students are to blame for the housing crisis is being challenged by data showing higher vacancy rates in student-populated suburbs. As the government prepares to implement stricter caps on international enrolments, the education sector is advocating for a more balanced approach that safeguards Australia's economic interests and the invaluable contributions of international students.
