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Australia's Pacific Labour Scheme Grows, but Local Impact Remains Unclear

A decade-old labour scheme now sends tens of thousands of Pacific workers to Australia—so why do economists still question its true benefits? New data reveals surprises.

The image shows a graph depicting the employment level in the United States. The graph is...
The image shows a graph depicting the employment level in the United States. The graph is accompanied by text that provides further information about the data.

Australia's Pacific Labour Scheme Grows, but Local Impact Remains Unclear

Australia's Seasonal Worker Program (SWP) began in 2012 with two clear aims: to boost economic growth in Pacific partner nations and to support Australian employers facing labour shortages. Over time, the programme expanded significantly, now operating under the Pacific Australia Labour Mobility (PALM) scheme as its short-term stream. Yet despite its growing scale, questions remain about its real impact on local workers and the economy. The SWP was designed to fill gaps in Australia's agricultural sector, where domestic labour supply struggled to meet demand. By 2018/19, the programme had issued around 25,000 visas, but this number surged to over 68,000 by April 2026—more than doubling in less than a decade.

A recent discussion paper from the Development Policy Centre examined whether the SWP had lowered earnings for domestic workers in similar roles. Using Australian tax and visa records, researchers found no clear evidence that the programme had affected local farm workers' wages in the most impacted regions and occupations. These findings align with two earlier studies on the broader labour market effects of immigration in Australia. While evidence on the SWP's economic benefits for Australia remains limited, its impact on Pacific nations is better documented. Reports from the World Bank in 2018 and a 2023 joint study based on the Pacific Labour Mobility Survey (PLMS) highlight progress toward its first objective. However, assessments of its second goal—benefiting Australian employers and the domestic economy—rely mostly on grey literature and recent analyses by Jobs and Skills Australia and researcher Richard Curtain.

The SWP has grown rapidly, with visa numbers rising sharply since its launch. But despite its expansion, there is still no firm proof that the programme has influenced key domestic indicators, including local workers' earnings. Further research may be needed to fully understand its long-term effects on both Pacific economies and Australia's labour market.

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