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By Jessica Thakur October 3, 2023
Canada's workforce is renowned for its skill and diversity, owing not only to its top-tier educational institutions but also to the highly skilled newcomers who contribute to its growth. However, how successful are newcomers at securing employment in Canada, both in the short term and over the years?
A recent study published by Statistics Canada offers valuable insights into this matter, spanning data from March 2006 to July 2023. The study delves into unemployment rates for various groups of immigrants:
1. Landed Immigrants: Those who have recently arrived or were already in Canada after being granted permanent residence (PR) status.
2. Immigrants in Canada for Five Years or Less: Newcomers who have recently settled in Canada.
3. Immigrants in Canada for 5-10 Years: Those who have been in Canada for a moderate duration.
4. Immigrants in Canada for 10 Years or More: Individuals with long-term residency in Canada.
Here are key findings from the study:
Landed Immigrants:
- Average unemployment rate between 2006 and 2023: 7.7%
- Peak unemployment in June 2020: 14.6%
- Lowest unemployment in June 2022: 5%
Immigrants in Canada for Five Years or Less:
- Highest average unemployment rate among all groups: 11.7%
- Peak unemployment in June 2020: 17.9%
- Lowest unemployment in August 2022: 7.4%
Immigrants in Canada for 5-10 Years:
- Average unemployment rate: 8.9%
- Peak unemployment in June 2020: 16.8%
- Lowest unemployment in December 2022: 4.5%
Immigrants in Canada for 10 Years or More:
- Lowest average unemployment rate: 6.6%
- Peak unemployment in June 2020: 13.4%
- Lowest unemployment in December 2022: 4.3%
Understanding the Results:
The study raises a fundamental question: Why do newcomers in Canada for less than five years face a higher unemployment rate? Several factors contribute to this, including:
1. Education and Accreditation: New permanent residents may be pursuing education or accreditation to adapt to the Canadian job market.
2. Spouses and Dependents: Family members of new permanent residents may be managing household responsibilities rather than working.
3. Pre-Landing Experience: Some new permanent residents already have pre-landing Canadian work experience, which positively impacts their employment prospects.
Notably, the study indicates that, over time, economic immigrants without pre-landing Canadian work experience tend to see their labor market outcomes align with newcomers who do have such experience, as well as with Canadian-born workers.
Factors Impacting Immigrant Labor Market Success:
A 2022 Statistics Canada study examined several key factors that influence the success of principal applicant economic immigrants:
1. Pre-Landing Canadian Work Experience
2. Official Language Proficiency
3. Age at Landing
4. Education Level at Landing
The study revealed that while some factors, like pre-landing Canadian work experience and language ability, significantly impact newcomers' labor market success upon arrival, the influence of these factors diminishes over time. Conversely, age and education level upon landing become increasingly influential over time.
Ultimately, the study suggests that the quality of pre-landing Canadian work experience may be the most significant determinant of immigrant success in the short, medium, and long term. Immigrants who studied or worked at recognized Canadian institutions before obtaining PR status held a distinct advantage. Importantly, the convergence of labor market outcomes among different groups indicates that newcomers without significant pre-landing Canadian experience can bridge the gap over time.
*During the COVID-19 pandemic (2020-2021), average unemployment rates for most cohorts were 2-3% higher than the 17-year average, highlighting the pandemic's impact on employment trends.
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