Canada’s latest economic and social report from Statistics Canada uncovers a notable trend. Canada’s newcomers experience accelerated employment rate growth compared to native-born Canadians after years of disparity.
Furthermore, there has been a discernible decrease in the employment gap between new immigrants and Canadians in the 25–54 age group. Moreover, these immigrants are demonstrating their disproportionate influence on the Canadian economy by significantly advancing innovation in Canada and by becoming more and more active in company ownership.
Advancing Labor Market Success – Ongoing Progress for Immigrants in Canada
The employment rate of recent immigrants (ages 25 to 54) increased by an astounding 10.7% between 2010 and 2023. Workers who were born in Canada, meanwhile, experienced a growth rate of 4.1% over the same time frame.
Consequently, throughout the last ten years, there has been a notable reduction in the difference in employment rates between these two categories. The employment rate difference between those who were born in Canada and those who were recent immigrants was 13.1% in 2010. This difference had narrowed significantly to just 6.5% by 2023. This pattern indicates that immigrants as a group are doing remarkably well in outperforming their Canadian-born peers in terms of obtaining and retaining work opportunities in Canada.
Furthermore, there has been a discernible decrease in unemployment rates between the two groups. The unemployment rate among recent immigrants aged 25 to 54 dropped from 12.1% in 2010 to 6.6% in 2023, dramatically reducing the difference in unemployment between recent immigrants and those who were born in Canada to only 2.6%.
In addition, immigrants recovered more quickly from the COVID-19 pandemic, which caused significant job losses for them, especially in the hospitality, food service, and retail industries. However, in 2019 the difference in the employment rate between workers who were born in Canada and those who just immigrated was less than it was before to the epidemic. This indicates that there was strong employment growth among recent immigrants between 2020 and 2023, exceeding pre-pandemic levels.
Rising Immigrant Engagement – Increasing Participation in Patents and Investments
According to an additional study that the economic and social report cited, immigrants in Canada were found to be disproportionately represented among patent applicants; even though they only made up 25% of the country’s population, they accounted for over one-third of all patent applications filed.
The survey also emphasized the growing immigrant population among Canadian investors, highlighting yet another way that newcomers are enhancing Canadian innovation and industry. In 2019, the proportion of male immigrants among investors was 34.2%, whilst the proportion of female immigrants was 44.3%. Given that immigrants make up approximately 25% of the Canadian population, it is important to highlight the discrepancy in investor participation and the important role they have played in the innovation and commercial landscape of the nation.
Drivers of Immigrant Dominance in Canadian Patents and Investments
The study identifies a number of changes in Canada’s immigration environment that provide explanations for why immigrants there continue to succeed.
The growing proportion of applicants for immigration who have previous work permits in Canada is one notable development. According to the data mentioned, 36% of all newly granted permanent residents in Canada in 2022 had work permits prior to their arrival. The percentage increased gradually from 19% in 2010 to 33% in 2019. A large body of research indicates that people who have worked in Canada before, especially in more skilled positions, typically have better immigration results than people who haven’t.
The second aspect is the use of the CRS by the Express Entry management system to assess candidates and choose new economic immigrants. The CRS strongly favors Canadian job experience, meaning that applicants who possess it will score better and have a higher chance of being selected for immigration. The system also takes into account other human capital qualities known to be associated with improved labor market outcomes in Canada. This includes thoroughly assessing education and official language fluency, including evaluating any credentials earned outside of Canada. Canada has benefited greatly from the implementation of this method in choosing economic immigrants who have a higher chance of success in the job market.
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