New immigrants in Canada, those who have become permanent residents within the past five years, are experiencing an unemployment rate nearly double that of the general population, according to recent data from Statistics Canada. The report reveals that the unemployment rate for recent immigrants stands at 12.6%, a significant increase from last year’s rate of 8.6%. This contrasts sharply with the overall national unemployment rate of 6.4%.
For Canadians born in the country, the unemployment rate was 5.5% in June. The Globe and Mail noted that the gap between the jobless rates of recent immigrants and native-born Canadians is the largest it has been since August 2014, nearly a decade ago.
Indians form the largest cohort of new permanent residents (PRs) in Canada over the past five years. In 2023, Indians comprised 139,785, or nearly 30%, of the 471,810 new PRs. Since 2019, out of the 1,841,250 new PRs, Indians numbered 514,435, approximately 28%, according to data from Immigration, Refugees and Citizenship Canada (IRCC).
Statistics Canada’s recent report on labor participation noted, “There were 1.4 million unemployed people in June 2024, an increase of 42,000 (+3.1%) from the previous month.” Other groups facing high levels of unemployment include younger Canadians aged between 15 and 24, with a rate of 13.5%, and Black Canadians aged between 24 and 54, who faced an unemployment rate of 11.9% last month.
The outlet Better Dwelling commented on the situation, stating, “Canada’s unemployment story is less about job losses and more about population growth. Immigration is rising much faster than the country’s economic capacity to create jobs, leading to much higher unemployment for new immigrants and young adults competing for similar roles.”
The economic challenges in Canada are further compounded by issues such as the cost of living, housing affordability, and healthcare. A recent survey by the Angus Reid Institute (ARI), a non-profit public polling agency, identified these as the three most significant issues affecting Canadians.
As economic difficulties continue to grow, addressing the employment needs of new immigrants remains a crucial aspect of ensuring their successful integration and contribution to Canada’s economy.
