"Today's figures confirm once again that the temporary visa system – which was designed at a time of low unemployment and severe skill shortages – is not working,” CFMEU national secretary Michael O'Connor said on Friday.

The figures revealed that in September there were 109,830 visa workers in Australia, similar to the level in 2013 when labour market was stronger.

Over the past year 52,490 visas were granted, despite the labour market only growing by 92,700 jobs, leaving Australia with an unemployment rate that has risen to 6.3% in November.

CFMEU said new 457 visa grants were equal to almost two thirds of total net growth in employment over that period, and 40,212 visa grants over the period were for overseas nationals aged under 30 at the time they got their visa.

Over that 12-month period, unemployment has gone from 5.7% to 6.2% and youth unemployment for 15 to 24 year olds has risen from 12.7% to 13.5%.

HSBC said trend employment growth remains subdued – the economy has only added an average of 13,000 jobs a month over the past six months, not even enough to keep up with population growth.

"If the 457 visa system was working properly, you'd expect to see less 457s as the jobs market gets worse,” O'Connor said.

"On our analysis, if the government required employers to seek local workers before looking overseas for all occupations, then on today's figures there would have been nearly 6,500 jobs that could have gone to locals.

"Instead, Tony Abbott is signing trade deals with China and Korea that will prevent us from applying labour market testing to their nationals.

"This could be a jobs disaster, especially if Chinese and Korean investors use only their nationals on infrastructure projects.

"Employers are still taking on workers on 457 visas in big numbers because it's easier to pay them less, and the government is only too happy to let them get away with it."

More than one in five foreign workers in Australia on a 457 visa are not being paid properly or doing the job they were brought here to do, according to the latest audit by the Fair Work Ombudsman, released last week.

Despite 457 numbers holding steady, a CFMEU analysis of the impact of labour market testing – the requirement for employers to look for local workers first – shows that it works, O'Connor said.

There were far fewer applications for 457 nominations in occupations covered by labour market testing, falling by 50% in nursing, 46% in engineering, and 29% in "Skill level 3", which covers a range of trades.

"When employers are made to look for local workers first, surprisingly enough, they are finding them," O'Connor said.

He demanded that the government roll out labour market testing requirements to the remaining 73% of occupations.