Study Shows Skills Gap Among Canadian Immigrants in Trades and Healthcare

A recent study highlights concerns about the underutilization of immigrants’ skills in Canada’s labor market despite the country’s immigration system being designed to address labor shortages. 

Economic immigration programs such as the Provincial Nominee Program (PNP) and Express Entry were established to attract skilled workers. Still, the findings suggest many immigrants end up in lower-skilled jobs.

In May 2021, 35 percent of recent immigrants were employed in lower-skilled roles, almost matching the 40 percent in higher-skilled occupations. This indicates that Canada’s immigration system may not effectively supply highly skilled labor as intended. 

The study also reveals that immigrants, such as electricians and carpenters, are significantly underrepresented in middle-skilled trades despite these roles being essential to Canada’s growing infrastructure needs.

Although immigrants face challenges in trade, they are overrepresented in certain high-skilled sectors. Recent arrivals are more likely than Canadian-born individuals to work in engineering and computer systems. 

For example, immigrants arriving between 2018 and 2019 were five times more likely to be employed in information technology roles, which is crucial for Canada’s competitiveness in the tech industry.

However, the healthcare sector presents hurdles to immigrant integration. Immigrants, particularly nurses, face long delays in credential recognition, which hinders their ability to meet the country’s nursing shortage. Many new immigrants initially work as aides while waiting to become fully licensed nurses.

The study suggests that while immigrants contribute significantly to higher-skilled fields, gaps in trade and healthcare persist. Policymakers may need to focus on reducing credential barriers and improving pathways for skilled immigrants in these essential professions.

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