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New Immigrants in Canada Experience Accelerated Employment Growth

A recent report from Statistics Canada highlights a significant shift in the employment landscape for new immigrants in Canada, who are now experiencing faster employment rate growth compared to their Canadian-born counterparts. This marks a notable improvement in the labor market integration of immigrants, particularly among those aged 25-54, who are also making substantial contributions to innovation and business ownership in Canada.

Improvements in Labor Market Outcomes for Immigrants

The labor market outcomes for immigrants in Canada have been on an upward trajectory since the early 2010s. The report shows that recent immigrants aged 25-54 experienced a 10.7% increase in their employment rate from 2010 to 2023, while the employment growth rate for Canadian-born workers in the same age group was 4.1% during this period.

This significant improvement has led to a narrowing employment rate gap between recent immigrants and Canadian-born individuals. In 2010, the gap stood at 13.1%, but by 2023, it had decreased to just 6.5%. This trend suggests that newcomers are increasingly catching up to and may soon surpass their Canadian-born peers in employment rates.

Moreover, the unemployment rate for recent immigrants in this age group has also declined, from 12.1% in 2010 to 6.6% in 2023, bringing the unemployment rate gap between recent immigrants and Canadian-born workers down to a mere 2.6%.

Resilience and Recovery Post-COVID-19

The report also notes the resilience of immigrants in the face of the COVID-19 pandemic, highlighting their strong recovery, particularly those who were impacted in sectors like accommodation, food services, and retail. The employment rate gap between recent immigrants and Canadian-born workers post-pandemic is now lower than the pre-pandemic levels of 2019, indicating robust employment growth among recent immigrants from 2020 to 2023.

Contribution to Innovation and Business

Further emphasizing the contributions of immigrants to Canada’s economy, the report cites a study showing that immigrants are over-represented among patent filers, accounting for more than one-third of all patents despite constituting only a quarter of the population. Immigrant participation in investment is also noteworthy, with immigrant men and women significantly contributing to the investor profile in Canada.

Factors Contributing to Success

The report suggests several factors that may explain the thriving outcomes for immigrants in Canada’s labor market. One key factor is the increasing number of immigration candidates with prior work experience in Canada, which has been linked to better immigration outcomes. In 2022, 36% of new immigrants granted permanent residency had previously held a work permit in Canada, a significant increase from 19% in 2010.

Additionally, the implementation of the Express Entry system, which prioritizes candidates with Canadian work experience, language proficiency, and a strong educational background, has played a crucial role in selecting economic immigrants poised for labor market success.

This evolving landscape underscores the positive trajectory of immigrant employment in Canada and their growing contributions to the nation’s economy and innovation sectors.


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