Immigrants In Canada Earning Good Scope In Canadian Labour Market

16 Oct 2019

Underemployment of Immigrants has been a longstanding difficulty in Canada, but the latest evidence runs in opposition to the negativity that often encloses this subject.

While it is fact that several immigrants are working lower than their paygrade, which as per the recent survey by the Royal Bank of Canada costs the economy a predicted $50 billion in annual GDP, Statistica Canada data shows significant progress is being executed on this front.

A Comprehensive Scorecard

When evaluating various immigrant labor force metrics, everything that we aspire to be happening is actually happening: a Higher number of immigrants are in the labor market and are hired, some of them are underemployed, and their wages are on the increase.

Among core-aged workers (who are aged between 25-54), the rate of participation of Canadian newcomers stood at 78% in 2018 related to 74% in 2006.

This is a positive conclusion because it implies that immigrants today are integrating into the labor market more faster than their predecessors.

The immigrant rate of employment has also grown — it was 71.3% in the year 2018 related to 65.2% in 2006. Similarly, newcomers who have been in Canada within 5 to10 years have seen their rate of employment rise significantly to 79.5% in 2018 related to 75.6% in 2006.

Immigrant wages are also increasing.  2018 Statistics Canada report wrote that- immigrants permitted to Canada in 2015 received the highest entry wages of any cohort granted since 1981.

Moreover, core-aged newcomers with a university degree noticed their wages rise by 3.5% in 2017 related to the previous year (the Canadian-born cohort witnessed a 0.9% increase).

Major Factors that Supporting Immigration

Settlement Services

The Canadian government and territories and provinces fund settlement support for newcomers such as language education, employment services, along with others. I.R.C.C is the biggest funder of such services and has raised its yearly settlement budget five-fold across the prior two decades to $1.5 billion at present.

This increased investment is likely contributing to the labor market gains immigrants have newly enjoyed.

Opportunity for Growth

Immigrants remain to face labor market obstacles that undermine their capability to make even more important contributions to the Canadian economy.

At the identical time, they are doing great in the labor market, which is apparently due to baby boomer retirements and improvements to the policy of immigration.

These two factors will remain, which should give us feeling optimistic that newcomers will continue to experience stronger labor market outcomes.

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