New immigrants in Canada experience rapid employment growth compared to Canadian-born individuals after several years of differences. This stands true according to Statistics Canada’s economic and social report. The recent employment growth indicates that newcomers between of 25 and 54 years in Canada are witnessing a reduced employment gap. This is the gap that exists between these new immigrants and the Canadian-born. However, they also make an overpowering contribution to Canadian technology and business ownership.
A consistent improvement in the labor market results for newcomers in Canada
Since 2010, newcomers in Canada have witnessed a rising trend in their labor market results. Newcomers between the age group of 25 and 54 years observed a growth of 10.7 percent in their rate of employment between 2010 and 2023. During the same period, the employment growth rate was 4.1 percent among workers born in Canada. In addition, the employment percentage gap between such groups has significantly declined in the previous ten years. In 2010, the employment rate between newcomers and those born in Canada emerged as 13.1 percent. Also, last year, this employment gap was 6.5 percent, indicating that new immigrants as a group are working to outshine their Canadian-born people in the context of attaining employment in Canada.
New immigrants in Canada experience rapid employment growth
In addition, the differences between the unemployment rates have drastically declined while comparing the two. Unemployment declined from 12.1 percent in 2010 to 6.6 percent in 2023. This indicates a decreased gap in unemployment rates between newcomers and workers born in Canada, with a small difference of 2.6 percent.
Immigrants displayed a rapid recovery after the pandemic, where they underwent immense employment disappointments as a group. This was specifically visible for retail, accommodation, and food services workers.
However, while distinguishing the employment rate gap between new immigrants and those born in Canada, the gap appeared lower than in 2019, before the pandemic levels. This indicates that employment growth among newcomers was specifically solid between 2020 and 2023.
Immigrant participation growth in patents and investments
Another study through the economic and study report indicated that although forming 4 percent of Canada’s population, immigrants had a significant share among Canada’s patent filers. This suggests around one-third of all patent applications.
Additionally, the study observed a rising participation of newcomers among Canada’s investors, displaying a significant method of their contribution to business and innovation. In 2019, male immigrants formed up to 34.2 percent of Canada’s investors. Conversely, women immigrants only contribute nearly 25 percent of the Canadian population. It is evident that this group substantially contributes to the overall profile of business and innovation in Canada.
New immigrants experience rapid employment growth – What are the possible reasons behind it?
The latest study reveals specific changes in the Canadian immigration landscape that could lead to immigrants doing good in Canada. Let’s explore these factors.
Rising immigration candidates holding previous work permits in Canada
The data reveals that in 2022, 36 percent of all newcomers who received permanent residence held work permits before immigration. This pattern is currently on the rise, with 19 percent of newcomers being work permit holders before immigration in 2010 and 33 percent in 2019. Substantial data also indicates that immigrants with previous work experience in Canada, specifically high-skilled jobs, appear to have better immigration results. This is in contrast with those newcomers without work experience.
Introduction of the Express Entry System
The second factor implies launching an Express Entry system that uses a Comprehensive Ranking System to evaluate candidates and select new economic-class immigrants. This scoring system gives utmost importance to Canadian work experience, implying that higher scores can lead to an ITA. In addition, Express Entry considers human capital factors, which correspond to increased labor market results in Canada. These primarily include official language proficiency and education. Both aspects are evaluated via educational credential assessments. This system’s introduction has helped Canada enormously in choosing economic immigrants who would significantly perform excellently in the labor market.
If you seek information on beginning your Canada immigration application process, talk to our MakeHomeCanada experts at 1-800-979-0509 or email us at [email protected].
