The Canadian workforce is one of the most skilled in the world, not just because of educational institutions but because of the highly skilled immigrants who arrive in the nation every year & drive growth in the labor force.
However, how successful are immigrants at finding employment in Canada in the short, medium, & long term?
Immigrant Employment Trends: The Outcomes
Statistics Canada recently published a study wherein data was included from March 2006 to July 2023, providing a huge overview of unemployment rates for:
- Landed immigrants
- Immigrants who have been in Canada for five years or less
- Immigrants who had been in Canada between 5-10 years
- Immigrants who have been in Canada for ten years or more
The study can further help reveal not just the average unemployment rates for each group but also how much unemployment rates can fluctuate for different groups over 17 years.
Between 2006 to 2023, landed immigrants in the nation had an average rate of unemployment, i.e., 7.7%. However, this rate went high in the month of June 2020, i.e., 14.6%. Also, the lowest rate of unemployment for these landed immigrants was 5% in June 2022.
Newcomers who have resided in Canada for five years or less had the highest rate of unemployment, i.e., 11.7% between the years 2006 & 2023. Well, this group was also subjected to a few considerable fluctuations in the rates of unemployment, i.e., it reached a high of 17.9% & a low of 7.4%.
Immigrants living in Canada for at least 5 – 10 years have an unemployment rate of 8.9%. Well, the group saw significant fluctuations in these employment rates among studied groups, thus having a high of over 16.8% (June) & a low of 4.5% (December).
Lastly, immigrants residing in Canada for ten years or more experienced the lowest rate of unemployment, i.e., 6.6%. Moreover, the group witnessed the lowest fluctuations in these rates, i.e., 13.4% as the highest & 4.3% as the lowest.
Comprehending These Results
In addition to the immigrant employment trends, the most significant question which emerges from the outcomes is why immigrants who have been in Canada for less than five years have such a high unemployment rate. Well, this cohort had a higher unemployment rate than even landed immigrants. Key reasons include:
- New permanent inhabitants pursuing education & accreditation to adjust to the Canadian job market or upskill themselves.
- Spouses as well as dependent children of new permanent residents, who, irrespective of working age, might also be pursuing education or managing home life, therefore adding to the unemployment rate.
- A significant section of new PRs who are counted as ‘landed immigrants’ will already have been in Canada & already have ‘pre-landing’ Canadian work experience, driving down unemployment among the group.
The key finding is that for new PRs without pre-landing Canadian work experience, it might take time to witness their skills as well as accreditation translate into their labor market outcomes. However, economic immigrants without pre-landing work experience will see their labor market outcomes converge with immigrants with pre-landing work experience & Canadian-born workers.
So, what affects these labor market outcomes for immigrants in different cohorts? A Statistics Canada study reveals the traits that impacted principal candidates:
- Official language capability
- Age
- Education
- Pre-landing Canadian work experience
Keeping in mind the immigrant employment trends in Canada, the study revealed that though some factors were specifically impactful for immigrant labor market success upon landing, the effect of these factors reduced as the time in Canada increased. The effect of age & education level upon landing increased over time.
Further, the study concluded that the single significant determinant of an immigrant’s success in the short, medium, & long term might not be pre-landing work experience but rather the quality of pre-landing experience. Immigrants who were able to study/ work at recognized institutions in Canada held a significant advantage as compared to those who did not.
Essentially, the convergence of labor market outcomes between the three groups indicates that those without meaningful pre-landing experience were able to make up the difference.
Thus, during the corresponding period of the pandemic, the average unemployment rate for most cohorts was between 2-3% higher than the 17-year average.