In Canada, immigrants play a crucial role in the workforce. A recent study from Statistics Canada looked at unemployment rates among different groups of immigrants from 2006 to 2023. Here are the key findings:
Landed Immigrants: Immigrants who just arrived or recently got permanent residence had an average unemployment rate of 7.7%. The rate spiked to 14.6% in June 2020 due to the COVID-19 pandemic but dropped to 5% in June 2022.
New Immigrants (5 Years or Less): Immigrants in Canada for five years or less had the highest average unemployment rate at 11.7%. Their unemployment rate hit 17.9% in June 2020 but decreased to 7.4% in August 2022.
Immigrants (5-10 Years): Immigrants who had been in Canada for 5-10 years had an average unemployment rate of 8.9%. Their rate reached 16.8% in June 2020 and dropped to 4.5% in December 2022.
Immigrants (10 Years or More): Immigrants in Canada for 10 or more years had the lowest average unemployment rate at 6.6%. Their rate peaked at 13.4% in June 2020 but fell to 4.3% in December 2022.
Why do newcomers (less than five years in Canada) face higher unemployment rates? Several factors contribute, such as pursuing education or managing home life. Those with pre-landing Canadian work experience tend to have better job outcomes.
A 2022 study by Statistics Canada found that factors like pre-landing Canadian work experience, language skills, age at landing, and education affect immigrant success. Pre-landing Canadian work experience and language skills matter more at first, but their impact decreases over time. Conversely, age and education at landing become more important over time.
In summary, while immigrants without pre-landing Canadian work experience may face initial challenges, their labor market outcomes improve over time, converging with those who have pre-landing experience and Canadian-born workers. The quality of pre-landing Canadian experience plays a significant role in long-term immigrant success.
