Employment rate of recent immigrants to Canada reached new high last year: Memo
Updated: Jul 31, 2021
The share of recent immigrants of prime working age who had employment reached a new high last year, even though Canada has been opening its doors to more newcomers than ever before, according to an internal federal analysis.
The increase was likely driven in part by the country’s strong job-creation run, which has encouraged companies to hire more people who usually find themselves at the margins of the workforce, says the document prepared for Finance Minister Bill Morneau. Immigrants who arrived less than five years ago fall into that category.
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The analysis provides a closer look at the impact of immigration on a labour force that has posted big gains in recent years.
After economic slowdown last winter the unemployment rate has hovered near 40-year lows. As a result, employers have reported challenges when trying to fill job vacancies.
“The performance of recent immigrants on the labour market has markedly improved in recent years, especially when considering the scale of immigrants arriving in Canada every year,” reads the January briefing note, obtained through access-to-information law.
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The memo says the employment rate for immigrants aged 25 to 54 who landed less than five years ago, was 71 per cent last year. It was the indicator’s highest level since 2006 — which is as far back as the data goes.
“Similar trends are witnessed for immigrants that landed between five and 10 years ago,” the briefing said.
The labour-force participation and unemployment rates of recent immigrants were better than before the last recession, over a decade ago. Selection criteria have targeted immigrants with better earnings prospects and recent newcomers to Canada are more highly educated, the analysis said.