Canada is an immigrant-friendly country, one much sought-after by migrants. People all around the world dream of moving to Canada for a better life with many opportunities for growth and employment. But, despite having a highly developed market economy, with the 10th largest GDP by nominal and 16th largest GDP by PPP in the world, the Canadian economy is facing a new problem: a wage gap.
The growing wage gap between immigrants and Canadian-born workers has hit a new high. The gap has more than doubled in the last 30 years, according to a new report by the Royal Bank of Canada (RBC). Immigrants are earning about 10 percent less on average than Canadians. Let’s dig deeper to find out how bad the problem is, its reasons and how you can take steps to increase your employability as an immigrant.
Wage Gap Between Immigrants and Canadian Born-Workers: An Analysis
How Bad Is the Wage Gap?
The difference in earnings is costing Canada $50 billion each year, says a new report from RBC. The report also claims that Canada is good at attracting immigrants, especially highly skilled ones, but fails to integrate them into the country’s workforce. Immigrants are lagging behind when it comes to being rewarded for the attributes that got them selected in the first place. In fact, the immigrant earnings gap has worsened even as immigrants have become significantly more educated than their Canadian counterparts. As a result, they are not able to pursue their own occupation and are compelled to accept alternative employment, at least until they are able to meet applicable Canadian standards.
What Is the Reason Behind This Widening Gulf?
There have been several research efforts to understand the difference in earnings between immigrants and Canadian-born workers. Studies indicate that many immigrants earn less than Canadian-born workers with the same amount of education and work experience. Sometimes, the reason is linked to the source country. The skills generated through the education and experience of immigrants in their home country is not directly transferable to the host country, resulting in well-qualified immigrants taking lower-paying jobs.
According to 2016 census data, nearly 22% of the Canadian population is foreign-born (this is expected to rise to 28% by 2036), with about 60% of new immigrants coming from Asia, particularly China and India. One implication of this data is that new immigrants are much less likely to have English or French (Canada’s two official languages) as their mother tongue. A large number of immigrants have completed their schooling in their home countries, often in a language other than English or French. As a result, the main barrier immigrants face in the Canadian labour market is employers and regulatory bodies struggling to assess how foreign work experience and credentials compare with Canadian standards.
Discrimination is another reason substantiated by research. In a field experiment conducted by economist Philip Oreopoulos of the University of Toronto, 13,000 resumés were sent to employers in the GTA. It was found that Canadian-born applicants with English-sounding names were more likely to receive a call-back for a job interview.
DID YOU KNOW?
Immigration, Refugees and Citizenship Canada (IRCC) broke the record for annual Express Entry Invitations to Apply in 2018, with 89,800 invitations.
What Can You Do?
Apart from efforts by the federal government to make significant changes to immigration selection, you can make significant changes to your skillset to improve your chances of landing a well-paid job. Here is what you, as an immigrant, can do to increase your employability in Canada.
Improve Your English and French
As mentioned, Canada has two official languages, English and French. The former is the most commonly spoken language in most territories and provinces; the latter is spoken in Quebec and some areas of Manitoba, New Brunswick and Ontario. If your English or French language skills are good, it will help you settle in Canada in many ways, such as:
- Getting a job
- Accessing services
- Going to school
- Meeting and talking to people
- Helping your children with schoolwork
- Getting your Canadian citizenship
Start improving your official language skills while you are in your home country or as soon as you arrive in Canada. If you already know one official language, consider learning the other. You can do a self-assessment test to determine your current level of language proficiency.
Do Your Homework
When applying for a job with a Canadian company, learn everything you can about the organization, including their culture. Prepare in advance for the questions you may be asked in the interview and dress professionally to get an edge.
Acclimatize to Canadian Work Culture
To ensure you transition smoothly into the Canadian workplace, you should not behave like an outsider. That’s why it is necessary to acclimatize to Canadian work culture which is very different from workplaces abroad. For example, in Canada, you generally call your boss or manager by their first names, instead of sir or madam which is common in Asian countries. If possible, talk to people in Canada, watch videos, or, if you have arrived in Canada, observe local professionals.
Tailor Applications to Job Positions
It is vital to know that sending 10 identical applications for 10 different positions is a bad idea. Every position is different and requires a different approach. The best bet is to send fewer applications and spend more time researching each position while making changes to your résumé and cover letter accordingly. A customized application for a specific position will not only help make a good first impression on your potential employer but also help you stand out from the crowd.
Get Accredited
The accreditations and certificates you have from your home country will not necessarily be accepted in Canada. Some occupations, like teaching and nursing, may require that you convert your accreditations to their Canadian equivalents by pursuing further schooling.
The immigrant wage gap is persistent and has only widened over the last three decades. It will become an even bigger problem in the future if it is not addressed, especially for a country that already has the highest proportion of immigrants to total population in the G7. Plus, it will cost a fortune to the Canadian economy.
The federal government needs to take appropriate measures to bring immigrants up to the same wage and employment levels as Canadians to produce substantial economic benefits. Implementing fairness legislation in all provinces, educating newcomers on the credential recognition process and educating employers on the benefits of hiring immigrants are some potential solutions to gradually narrow down the wage gap. Also, applicants planning to move to Canada must work on enhancing their soft skills to integrate into the Canadian workplace. It will take time, but continuous efforts and implementation of well-thought-out ideas can make a difference.