Are immigrants in Canada facing the worst job crisis in 10 years?

Is Canada witnessing the most severe job crisis for immigrants in a decade?

Many have dispersed nationwide in a quest for a better life and opportunities. In an increasingly interconnected world, people from diverse backgrounds become immigrants, seeking fresh starts and improved prospects far from their native lands. One such diverse group has chosen Canada, enticed by the promise of a thriving job market and the potential for a better life. Canada, renowned for its diverse and inclusive society, is a land of opportunity. However, the extent to which these immigrants secure the jobs they aspire to, or if they encounter unforeseen challenges and crises, is a subject that warrants a comprehensive exploration.

Upon arriving in Canada, many immigrants are excited and uncertain. The Canadian job market is indeed robust, boasting a wide range of opportunities across various sectors. However, for many immigrants, especially those whose credentials and work experience from their home countries still need to be fully recognized, the path to employment can be fraught with obstacles. This is a significant challenge that needs to be addressed. However, with the right support and recognition, these immigrants have the potential to make significant contributions to Canadian society.

According to the Times of India, "The unemployment rate for recent immigrants in the last five years was 12.6% in June, the worst in 10 years. Indians, the biggest national cohort to get permanent residency in Canada, will likely be the worst hit".

Times of India stated that:

According to Statistics Canada, the unemployment rate of 12.6% is four percentage points lower than in 2023.

The unemployment of immigrants was 5.5 %, which is now reduced to 5% in 2023

According to a Globe and Mail report, these latest numbers show that the unemployment rate among immigrants has been the largest since 2014.

Indians are one of the largest groups of immigrants who have become permanent residents(PRs) in Canada over the past five years.

WHY INDIAN IMMIGRANTS ARE LIKELY TO HAVE BEEN HIT

As of the recent survey, In 2023, there will be 471,810 new permanent residents, and 139,785 are Indians-estimated at 30%. 

It is also crucial to note that, since 2019, data on immigration, Citizenship Canada (IRCC), new permanent residents, and Refugees are estimated to total 1,841,250. Out of this count, 514,435 were Indians. 

In June 2024, Statistics Canada reported 1.4 million unemployed individuals, an increase of 42,000 (+3.1%) from the previous month. This rise indicates a challenging economic environment and heightened job-seeking activity. Factors such as market fluctuations and industry shifts may have contributed to the increase. Analyzing these statistics is crucial for policymakers to understand economic trends and implement targeted interventions. Strategies such as education programs and business support may mitigate rising unemployment rates and foster economic recovery. These findings provide valuable insights for monitoring labor market dynamics and formulating effective policies toward sustainable economic growth.

In Canada, businesses face challenges with elevated interest rates, leading to increased reluctance to hire over the past two years. The country has experienced a growth in its population, which is attributed to a significant influx of immigrants.

"The record surge in immigration has meant that even the healthy pace of job growth over the past year has fallen well short of what would have been needed to keep the unemployment rate steady," Royce Mendes and Tiago Figueiredo, economists at Desjardins Securities, said in a research note on July 9.

YOUTH UNEMPLOYMENT IN CANADA

Though there are many advantages to working in Canada, the youth unemployment rate is also at a high of 13.6%, the highest since 2016.

Consequently, there has been a decrease in the interest of Indian students choosing to study in Canada. While Indians comprised the largest national group, accounting for 37% of study visas issued in 2023, their application rates to Canada have notably declined.

Although the number is declining, Indian students make up 41% of Canada's international students. Now, they will enter the job market, and challenges await them.

Desjardins Economists are saying that the labor market is going well for people already employed but not those seeking a job.

According to the Canadian publication Better Dwelling, the unemployment report in Canada is shifting away from job cuts towards the impact of population growth. The rapid increase in immigration is outpacing the nation's ability to generate employment opportunities, resulting in elevated unemployment rates among new immigrants and young adults vying for similar positions.