The road to secure job opportunities is difficult for culturally diverse communities

Individuals who have migrated to Australia from other countries are struggling to earn an income, while jobseekers from culturally diverse backgrounds are more likely to experience discrimination during the recruitment process, according to recent research.

It’s a difficult journey for new migrants attempting to earn an income, according to a new atWork Australia report. Jobseekers from culturally diverse backgrounds also struggle with the job hunt, yet many businesses claim to be supportive of a diverse workplace.

According to research, there is a 36 per cent difference in profitability between companies with the most diverse leadership teams and the least diverse ones. However, building a diverse company is proving to be a difficult endeavour, as culturally diverse communities often face discrimination throughout the job hiring process, stunting their opportunity to enter these environments.

Migrants, for example, struggle in the job market. According to the Migrant settlement outcomes report, migrants were less likely to earn a personal income (70 per cent) compared with the total population of Australia (76 per cent) but also less likely to receive unemployment benefits (11 per cent compared with 13 per cent).

Along with migrants, culturally diverse communities often have disadvantages that can be intergenerational. Roughly one in three children born into families in the bottom 20 per cent of the income distribution will remain there.

The costs of unemployment and intergenerational disadvantage are not evenly felt across Australia. Poorer labour market outcomes and disadvantages are often disproportionately concentrated in a relatively small number of communities and areas.

Addressing disadvantages and biases in the job hiring process is dependent on both employers and the national government. Labour market inequalities must be reduced if Australia is to address entrenched disadvantages and achieve inclusive and diverse workplaces.

According to the Working Future report: “Everyone should have the opportunity to access paid work which supports financial independence, health and wellbeing, and social connection. Sharing the benefits of work more evenly will also support the government’s broader objectives of creating a healthier, fairer and more cohesive society.”

Reducing labour market inequalities to achieve inclusive employment requires concerted action by governments, unions, civil society and employers. Legitimate buy-in from these organisations is vital to the process of dismantling these disadvantages and biases that are affecting certain communities more than others.

Creating a system that works for jobseekers from different communities could create a direct level of support. Taking the time to invest in people and their skills generally delivers better labour market outcomes over the long term. Nonetheless, the system needs to have flexibility to allow tailored responses to individual needs and circumstances.