Due to immigration limitations and a decline in international students, Australia’s hospitality sector is experiencing a labor shortage, making it difficult for restaurants to fill critical positions.

Struggling to Fill Hospitality Jobs

Leading restaurateurs in Australia are raising concerns about the increasing effects of immigration restrictions on the hospitality sector. Prominent figures in Sydney’s dining industry caution that a large number of Australians are hesitant to work in the hospitality industry, which forces companies to rely on foreign labor. This worry arises as the industry’s capacity to fill critical positions has been hampered by tighter federal regulations intended to reduce immigration and student visas.

According to a recent Business NSW research, 80% of companies have had to improve working conditions or raise wages in the last 12 months in order to compete for qualified workers. Many firms say that local interest in hospitality roles is still low, despite their efforts.

Rising Dependence on Visa Holders

One well-known restaurant owner, who has over half of her employees on visas, lamented the lack of local talent, pointing out that skilled migrants and international students play crucial roles in her kitchen. With just 86,847 study visas granted in the first quarter of 2024–2025, compared to 103,519 in the same period last year, the decrease in visas awarded over the past year has already made staffing shortages worse.

Government Policies and Industry Challenges

Policies put in place to slow the issuance of student visas are still in effect, despite the fact that a proposal to cap the number of overseas students starting in 2025 was defeated. Business owners that depend on foreign students to cover labor shortages are even more concerned as the opposition has promised tighter regulations if it wins the upcoming federal election.

Owners of restaurants also note a change in culture, with fewer young Australians considering careers in hospitality to be feasible. International students are essential to maintaining operations because of the industry’s perceived lack of glamour and arduous nature, which many say discourages local workers.

Competitive Wages but Limited Interest

Employers in the hospitality sector report that they are still having trouble luring local talent while offering competitive pay—waitstaff make an average of $31 per hour, while chefs receive between $23.46 and $29.64 under the Restaurant Industry Award. Many worry that continued limitations on immigration would make the labor deficit worse and cast doubt on Australia’s hospitality sector’s future.

Urgent Need for Migration Reform

Australia’s hospitality industry is urging a reconsideration of immigration policy as the competition for skilled workers heats up. The sector will have a difficult time upholding its standards and expanding if it cannot find foreign talent to fill key positions. This emphasizes how urgently legislative changes are needed to address the labor crisis.