Canada’s workforce is one of the most talented in the world, thanks not just to superb educational institutions within the country, but also to highly trained newcomers who arrive in Canada each year and drive labor-force expansion. (Immigrant Employment in Canada)
How successful are newcomers in obtaining work in Canada in the short, medium, and long term?
The Outcomes
Statistics Canada has issued a research that offers light on the subject. The report covered the period from March 2006 to July 2023, and it provided a comprehensive review of unemployment rates for:
· Landed immigrants (those who have just arrived, or who were already in Canada after newly being granted permanent residence (PR) status);
· Immigrants who had been in Canada for five years or less;
· Immigrants who had been in Canada between 5-10 years; and
· Immigrants who had been in Canada for 10 years for more.
Thus, the study can assist highlight not just the average unemployment rates for each group, but also how much unemployment rates can fluctuate for different groups over a 17-year period. (Immigrant Employment in Canada)
Between 2006 and 2023, the average unemployment rate for landed immigrants in Canada was 7.7%. Unemployment for this group peaked at 14.6% in June 2020, yet employment data from 2020-2021 is heavily influenced by the COVID-19 epidemic (a common theme among all immigrant groups) *. In June 2022, the lowest unemployment rate for landed immigrants was 5%.
Between 2006 and 2023, immigrants who had been in Canada for five years or less had the highest average jobless rate (11.7%) of any analyzed category. This group’s unemployment rate fluctuated significantly, reaching a high of 17.9% in June 2020 and a low of 7.4% in August 2022.
During the 17-year study period, immigrants who had been in Canada for 5 to 10 years had an average unemployment rate of 8.9%. This group experienced the greatest variations in unemployment rates, reaching a peak of 16.8% in June 2020 and a low of 4.5% in December 2022.
Finally, immigrants who had lived in Canada for ten years or more had the lowest average unemployment rate of any group during the research period, at 6.6%. Furthermore, the group experienced the smallest swings in unemployment rate among all investigated groups, with a high of 13.4% in June 2020 and a low of 4.3% in December 2022.
Understanding – These Outcomes
The most pressing concern raised by these findings is, “Why do immigrants who have been in Canada for less than five years have such a high unemployment rate?” Notably, this group had a higher unemployment rate as well as a greater variation in unemployment rate than even landed immigrants. The following are some of the primary causes for this:
•New permanent residents (less than five years in Canada) pursuing education and accreditation to better adapt to the Canadian employment market or upskill themselves (and thus not working);
•Spouses and dependent children (aged 15 and above) of new permanent residents who, despite being of working age, may be pursuing school or managing home life, contributing to the unemployment rate; and
•A considerable proportion of incoming PRs listed as “landed immigrants” will have previously lived in Canada (typically as students and workers) and will most likely have “pre-landing” Canadian job experience, lowering unemployment among this group.
The significant result here is that it may take time for new PRs with no prior Canadian job experience to see their abilities and accreditation convert into labour market outcomes.
However, as the preceding statistics show, economic immigrants with no prior Canadian work experience will generally see their labour market outcomes converge with newcomers with prior Canadian work experience and even Canadian-born workers.
So, how do these labour market results differ for different cohorts of immigrants? Statistics Canada’s 2022 study sheds light on this topic. The study looked at the following characteristics that influenced the success of primary applicants and economic immigrants:
· Pre-landing Canadian work experience;
· Official language ability;
· Age (at landing); and
· Education
The study indicated that, while some criteria were particularly important for immigrant labour market performance upon arrival (pre-landing Canadian work experience, official language proficiency), the importance of these elements decreased as time in Canada grew. In contrast, the impact of age and education level on landing has grown over time.
According to the study, the single most important indicator of immigration success in the short, medium, and long term may not be pre-landing Canadian employment experience, but rather the quality of this pre-landing experience. Immigrants who were able to study or work in recognized institutions and capacities in Canada prior to gaining PR status had a major advantage over those who were unable to do so.
Importantly, the convergence of labour market outcomes between three groups (new immigrants without pre-landing Canadian experience, new immigrants with pre-landing Canadian experience, and Canadian born workers) suggests that those lacking meaningful pre-landing Canadian experience were able to make up the difference given enough time. (Immigrant Employment in Canada)
*During the COVID-19 pandemic period (2020-2021), average unemployment for most cohorts was 2-3% greater than the 17-year norm.
