A recent Statistics Canada report reveals that temporary foreign workers (TFWs) transitioning to permanent residents (PRs) have the highest retention rates in the healthcare and social assistance sectors. The study highlights significant differences in retention rates—the proportion of TFWs who continue working in the same sector after obtaining PR status—across various industries.

These findings underscore the importance of sector-specific dynamics in shaping long-term workforce stability. Healthcare and social assistance emerge as leading sectors in retaining TFWs, reflecting their critical role in Canada’s labor market. Meanwhile, other industries show varying levels of success in retaining these workers post-transition to permanent residency.

Which sectors reported the highest retention rates?

The following data highlights the percentage of temporary foreign workers (TFWs) who continued working in the same sector one year and five years after obtaining permanent residency (PR) during 2011-2015. The figures are for industries with the highest retention rates:

Healthcare and Social Assistance:

  • 81.4% remained after one year.
  • 64.9% remained after five years.

Utilities:

  • 80.3% remained after one year.
  • 58% remained after five years.

Finance and Insurance:

  • 77.1% remained after one year.
  • 55.2% remained after five years.

Public Administration:

  • 72% remained after one year.
  • 51.2% remained after five years.

Transportation and Warehousing:

  • 70.4% remained after one year.
  • 49% remained after five years.

Manufacturing:

  • 74% remained after one year.
  • 48.9% remained after five years.

Construction:

  • 70% remained after one year.
  • 47.3% remained after five years.

Which sectors demonstrated the lowest retention rates?

Certain industries experienced notably lower retention rates for temporary foreign workers (TFWs) after they became permanent residents (PRs), as outlined below:

Management of Companies and Enterprises:

  • 36.7% remained after one year.
  • 8.7% remained after five years.

Real Estate, Rental, and Leasing:

  • 46.2% remained after one year.
  • 19.4% remained after five years.

Other Services:

  • 45.5% remained after one year.
  • 20% remained after five years.

Administrative and Support, Waste Management, and Remediation Services:

  • 54.3% remained after one year.
  • 21% remained after five years.

Agriculture, Forestry, Fishing, and Hunting:

  • 52.8% remained after one year.
  • 24.1% remained after five years.

Why is the retention rate significant?

Industry retention is crucial because permanent residency (PR) is frequently awarded based on the specific occupation a worker holds, which directly addresses the demand for labor in particular sectors. When workers stay in these industries, it helps to alleviate labor shortages in key fields and regions, ensuring a stable workforce where it’s most needed.

Additionally, high retention rates benefit both businesses and individuals. For businesses, retaining workers reduces the need for costly and time-consuming recruitment processes and retraining. For workers, staying in the same sector allows them to build on their experience, advancing in their careers without the disruption of shifting industries. This long-term stability leads to more efficient use of resources and better outcomes for both employers and employees.

What motivates workers to switch industries? 

Several factors can influence workers’ decision to switch industries:

  • Wage Levels: Employees may leave a sector for better-paying opportunities elsewhere, especially if the financial compensation in their current industry does not meet their expectations or needs.
  • Working Conditions: Poor working conditions, such as long hours, high stress, lack of benefits, or unsafe environments, can prompt workers to seek a more favorable work-life balance or a healthier workplace in another industry.
  • Job Stability: Workers might change industries in search of more secure and stable employment, especially in sectors prone to fluctuations, layoffs, or uncertainty.
  • Specific Skill Requirements: As industries evolve, workers may find that their current skill set no longer aligns with the demands of their job. If career advancement within their current field is limited or requires skills they do not possess, they may pursue a different industry where they can leverage or develop new abilities.

Furthermore, higher retention rates are often seen among employees who are more engaged with their work. A low retention rate may suggest lower job satisfaction, indicating that workers are less fulfilled or motivated in their current roles and are more likely to transition to different industries.

What was the overall retention rate?

The study revealed that 68.4% of temporary foreign workers (TFWs) continued working in the same sector they were employed in as work permit holders, one year after obtaining permanent residency (PR). However, this retention rate declined over time, with only 43% of TFWs remaining in the same industry five years after acquiring their PR status. This suggests that while many workers initially stay in their original sector post-PR, a significant portion transition to different fields or industries as time progresses.

How does the work permit program influence the retention rate?

Industry retention rates varied significantly depending on the type of work permit program.

Participants in the higher-skilled temporary foreign worker program exhibited the highest retention rates, with 53.4% remaining in the same sector five years after obtaining permanent residency (PR). Intra-company transferees followed closely behind, with a retention rate of 51.4% after five years.

On the other hand, workers from the live-in caregiver program had the lowest retention rate, with only 28.6% remaining in the same industry five years after receiving their PR. This suggests that the type of work permit program plays a key role in determining how likely workers are to stay in their original industry long-term.

How was the study carried out?

The study focused on temporary foreign workers (TFWs) who were employed in paid positions under work permits for work purposes (WPPRs) and later transitioned to permanent residency (PR) between 2011 and 2015.

The study also identified several reasons why individuals may have moved out of their original industries, including:

  • Transitioning to a different industry or sector.
  • Starting their own business and becoming self-employed.
  • Experiencing unemployment, leading to a departure from the industry.
  • No longer appearing in tax records, suggesting they might have stopped working or left the workforce entirely.