Immigrants in Canada face worst job crisis in 10 years. Indians likely hit hard

The unemployment rate for recent immigrants to Canada in the last five years was 12.6% in June. This is the worst in a decade. Indians, at 30%, are on top of the list to have got permanent residency in Canada and are likely to have been hit by the job crisis.


The decade-high unemployment rate in Canada is a big challenge for recent immigrants. (Image: Instagram/heyiamnishat)

India Today World Desk
New Delhi,

UPDATED: Jul 12, 2024 
Written By: Priyanjali Narayan

In Short

Canada's unemployment rate for recent immigrants in five years was 12.6% in June

It is the worst rate among immigrants since 2014. Youth unemployment rate high too

Indians, the biggest cohort to get permanent residency, might have been hit hard

Immigrants who moved to Canada eyeing a better life are grappling with the worst job crisis in a decade. The unemployment rate for recent immigrants in the last five years was 12.6% in June, the worst in 10 years. Indians, being the biggest national cohort to get permanent residency in Canada, are likely to be the worst hit.

The unemployment rate of 12.6% is four percentage points lower than 2023, according to Statistics Canada.

The unemployment rate for those who were originally from Canada was 5.5%. In 2023, it was 5%.

These latest numbers show the unemployment rate among immigrants is the largest since 2014, according to a Globe and Mail report.

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

WHY INDIAN IMMIGRANTS ARE LIKELY TO HAVE BEEN HIT

In 2023, out of the 471,810 new permanent residents, Indians were 139,785 or nearly 30%.

Since 2019, according to data from Immigration, Refugees and Citizenship Canada (IRCC), of the new permanent residents, 1,841,250, Indians were 514,435 in number.

“There were 1.4 million unemployed people in June 2024, an increase of 42,000 (+3.1%) from the previous month," Statistics Canada revealed in a recent report.

The companies in Canada are struggling with high interest rates, and they have become more hesitant to hire in the last two years. The Canadian population has increased due to a strong 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 A CHALLENGE FOR INDIAN STUDENTS

The job market is not just harsh on newcomers. The youth unemployment rate is also at a high at 13.6%, the highest since 2016.

This has led to a decline in interest in Indian students coming to Canada. Indians made up the largest national cohort with 37% of study visas issued in 2023, but they are not applying to Canada in equally large numbers any more.

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 labour market is going well for people who are already employed but not for those who are seeking a job.

“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," wrote Canadian outlet, Better Dwelling.