Canada relies primarily on immigration for fulfilling labor market gaps. Here’s how newcomers can find jobs in Canada.
Immigration represents almost 100% of Canada’s labor market growth. It is a key factor in not just meeting the nation’s economic demand but also supporting socialized welfare systems.
This relationship is not one-directional. However, economic immigrants, in turn, must be able to find work & earn money to meet their needs. Well, they must also focus on building PR eligibility, which is crucial to settling in Canada.
Thus, when considering economic immigrants for a job & work permit, it is vital to consider historical data on these two factors. Well, this is to understand the realities of gaining a work permit & moving from TFW status to permanent residence.
Two recent studies by Statistics Canada covering the period from 2010 to 2020 offer some insights into the matter.
Read on to learn how newcomers can find jobs in Canada & which programs deliver the most work permits.
Which Program Delivered The Most Work Permits?
Canada has two work permit pathways, i.e., the TFWP Temporary Foreign Worker Program & IMP (International Mobility Program). Both programs contain multiple work permit streams for different scenarios.
In addition, it is vital to differentiate between the two as well. The TFWP is to help Canada’s labor market shortages precisely when these shortages cannot be fulfilled domestically. Work permits from the TFWP require an LMIA. An LMIA is a document which shows the impacts of hiring a foreign worker on the labor market. These work permits tend to be tied to a single employer in a particular industry.
On the other hand, the IMP exists to meet Canada’s economic, cultural, & social goals. In addition, IMP work permits do not require issuing an LMIA. They are often open work permits, implying that holders can work for almost any employer in most industries.
So, which program delivered the most work permits in the last ten years? Data shows that, in 2010, the TFWP work permits accounted for 174,876 of the 531,700 issued. In the same period, IMP work permits were 225,440. Comparing this data from 2021, out of 963,400 issued work permits, TFWP issued 145,473 work permits, while IMP issued 526,016 work permits.
Over time, the IMP has grown in prominence, while the TFWP has seen a steady decline in work permits issued. In addition, the growth of the IMP was considerable, i.e., it almost quadrupled the number of work permits issued within the ten-year reference period. This growth was primarily a result of two immigration streams within the IMP. They are work permits for the purpose of studies & post-graduation employment.
Furthermore, the total number of work permits has almost doubled during this time period. Also, the prevalence of TFWP has greatly decreased (except for agricultural programs). Well, these findings suggest that Canada is in a position where it can fulfill its labor market needs.
Based on these findings, candidates for a work permit might successfully pursue work authorization via the IMP. Specifically, it can be through ‘post-graduation employment’ as well as a ‘work permit for the purpose of study’.
These are work authorizations tied to a study program that has seen massive growth in numbers within the last ten years. This path to a work permit can be specifically beneficial as it is often tied to immigrant success in the labor market because of the opportunity to improve proficiency in French & English, gain connections, & obtain a Canadian education credential.
Do These Foreign Workers Find Jobs In Canada?
The next step for work permit holders is to begin the process of obtaining a PR. Work experience is crucial for these individuals, as a minimum of one year of relevant work experience in Canada is necessary for most economic PR pathways.
To answer the question of work permit holders who seek work, we can compare the number of work permit holders in a given year to the number of work permit holders who reported a positive income in that year. However, it is vital to note that this comparison will not include self-employed people.
In 2020, out of 991,500 work permit holders, over 682,500 reported a positive income via labor market participation. While this might seem lower than expected, remember that specific factors negatively impact this percentage. In addition, if the participation figure considers individuals with a study permit, the participation rate will increase to 83%.
The participation rate of work permit holders in 2011 was much lower, with only 55% reporting a positive income.
What Programs Did People Find Jobs In?
Well, newcomers can find jobs in Canada & the data available goes one step further, i.e., it breaks down the foreign workers by work permit program, age, work permit duration, etc.
Among the work permit streams, agriculture programs had the highest rate of reported positive income, i.e., 92%. This was not just the highest rate among any stream but also the highest when considering IMP participation. These findings somewhat make sense as TFWP work permits tend to already come with a job offer.
Among IMP work permit streams, the highest participation rate was 76% from post-graduation employment work permit holders, followed by Intra-Company Transferees & International Experience Canada work permit holders.
By age, the highest rate of labor market participation was workers having age between 25-34, with 68% of work permit holders reporting a positive income. Well, this was trailed closely by permit holders aged between 35-44 with a 67% participation rate.
Finally, regarding the work permit durations, those with a work permit valid for 10-12 months have the highest labor market participation rate. This was followed by those with a permit validity of 7-9 months, with a consistent positive correlation between the length of work permits as well as participation rates.
What’s The Best Path?
Taking these findings into account, we can see a growing significance of IMP in issuing work permits. In addition, this group boasts the highest percentage of average labor market participation. Well, this can raise a question, i.e., is pursuing study alternatives in Canada the best chance at both obtaining a work permit & performing well in the labor market, ultimately obtaining a PR?
While there is Statistics Canada data to support this idea, the best path to a work permit & obtaining PR is specific to every candidate’s circumstances & characteristics.
Moreover, the above studies suffered from some limitations, including a slow & outdated method of counting present work permit holders, which might not reflect the accurate number of holders, a lack of distinction between permit holders pursuing work & those who are not, & the inability to include self-employed individuals when making immigration analysis.