Recent findings from Statistics Canada highlight an encouraging trend: new immigrants are securing jobs at a faster rate than their Canadian-born counterparts. This surge in employment for immigrants, particularly those aged 25-54, is closing the employment gap and showcasing their vital role in Canada’s innovation and entrepreneurial landscape.
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A Closer Look at Immigrant Employment Trends
Over the past decade, immigrants have seen a significant boost in employment opportunities. Between 2010 and 2023, newly arrived immigrants in the 25-54 age bracket witnessed a 10.7% increase in employment rates, compared to a 4.1% increase among Canadian-born individuals.
This narrowing gap is evident in the employment rate difference, which shrank from 13.1% in 2010 to just 6.5% in 2023. Similarly, the unemployment rate for recent immigrants dropped from 12.1% to 6.6% during the same period, further closing the gap with Canadian-born workers to a mere 2.6%.
Bouncing Back from COVID-19
The pandemic posed significant employment challenges, especially in sectors heavily reliant on immigrant workers like accommodation, food services, and retail. Despite this, immigrants have rebounded impressively, with current employment rates surpassing pre-pandemic levels. This robust recovery underscores the resilience and adaptability of immigrant workers in Canada’s labor market.
Immigrants Driving Innovation and Investment
Not only are immigrants thriving in the job market, but they’re also making substantial contributions to Canada’s innovation and business sectors. Immigrants are responsible for over one-third of all patent filings, despite constituting only a quarter of the population. Furthermore, they’re actively participating in investments, with immigrant men and women representing significant portions of investors in 2019, far outpacing their population share.
Explaining the Success
Several factors contribute to the flourishing employment and entrepreneurial ventures of immigrants in Canada:
- Work Permit Experience: A notable trend is the increasing number of immigrants who had previously worked in Canada under work permits before gaining permanent residency. This experience in the Canadian workforce significantly enhances their employment prospects.
- Express Entry System: Introduced to streamline economic immigration, the Express Entry system favors candidates with Canadian work experience, language proficiency, and assessed education credentials. This approach has proven effective in selecting immigrants likely to succeed in the labor market.
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This positive shift in employment growth for new immigrants not only benefits the individuals and their families but also strengthens Canada’s economy by filling critical job vacancies and fostering innovation.