Australia’s economy is in the middle of a skilled labour crunch, yet the very system designed to fill those workforce gaps is experiencing unexpected delays. Just months into the launch of the federal government’s new Skills in Demand visa program, businesses are voicing concern. Promised as a faster and more streamlined solution to bring international talent into Australia, the new structure is now under scrutiny for taking too long to deliver the people industries urgently need.
The timing could not be worse. From construction sites to hospitals to cybersecurity firms, organisations are trying to rebuild, grow or simply maintain their operations in an increasingly competitive global market. If we cannot bring talent in quickly, are we setting ourselves up to fall behind?
Visa delays are extending well beyond targets
When the Skills in Demand visa replaced the former temporary skill shortage framework, the Department of Home Affairs set clear expectations. The Specialist Skills stream was supposed to have a median processing time of just 7 business days, while the Core Skills stream had a target of 21 business days.
But those targets have not been met. The most recent data shows that only half of Core Skills stream applications are processed within 43 days, and 90 percent are not finalised until 84 days. Similarly, for the Specialist Skills stream, 90 percent of applications are taking up to 39 days to process. That is nearly six weeks for the stream that was supposed to be the quickest.
These numbers matter. Businesses make hiring decisions and plan entire projects based on the expected arrival of skilled workers. When timelines double or triple without warning, costs rise, opportunities are missed and confidence in the system erodes.
Workforce and industry are feeling the pressure
The impact of these visa processing delays is not just a bureaucratic issue. It is a business one. Industries across Australia are facing mounting skill shortages, particularly in healthcare, construction, IT and agriculture. Many of these sectors rely on international workers to meet critical operational needs.
Recruitment agencies and employers have reported that talent pipelines are stagnating. Candidates who were expected to arrive in early May are now being told to wait until mid to late July. For rural and remote areas, where local talent is especially scarce, this delay is even more damaging.
In a June workforce outlook report by the Australian HR Institute, 38 percent of employers said they were experiencing recruitment difficulties, up from 30 percent just a quarter earlier. Despite this, 64 percent of organisations planned to hire in Q2, underscoring a persistent demand that the current migration framework is struggling to support.
Trust in the system is at risk
Employers are not just frustrated. They are losing faith. Industry groups such as the Migration Institute of Australia and the Australian Industry Group have raised concerns that extended visa wait times will drive global talent to choose more responsive markets. Countries like Canada and the UK are currently running aggressive skilled migration campaigns, and Australia’s competitive edge is slipping.
When global workers perceive Australia as slow or uncertain in its processing timelines, we risk not only losing applicants but also weakening our brand as a destination for top-tier talent. This compounds the workforce challenges already felt across the economy and limits Australia’s ability to respond to structural and digital transformation demands.
Efficiency must catch up to ambition
The Skills in Demand visa system was introduced with strong ambition to connect the right talent with the right roles faster. But without matching administrative efficiency, those ambitions remain out of reach.
If Australia wants to remain a serious contender in the global talent race, urgent improvements to visa processing timelines are not just preferred. They are essential. A robust economy depends on a workforce that is both ready and available. Right now, the clock is ticking and businesses are waiting.
