Employment Discrimination Against Skilled Immigrants in Canada

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In Canada, skilled immigrants continue to be systemically devalued when searching for job opportunities. There is an 11.1% employment rate gap between non-immigrant and immigrant skilled workers.[1] For 2020, Canada targets to welcome 85,800 new skilled immigrants to the country, comprising over 40% of all immigrants that year.[2] Despite being welcomed, skilled immigrants struggle to find jobs, face substantially higher levels of unemployment, and earn lower wages compared to skilled non-immigrants.[3][4] This discrimination results in over $11 billion CAD in economic losses each year in the form of unemployment and underemployment, and leads to both demoralization and poor mental health in skilled immigrants.[5] It is imperative that companies as well as policy-makers take appropriate measures to reduce employment discrimination in Canada, such as reviewing HRM strategies and pushing for more equitable policy.

Introduction

According to the 2016 Census, there are over 7.5 million foreign-born immigrants in Canada, making up over 20% of the country's population.[6]

Immigration to Canada

Immigration to Canada has seen significant growth in recent decades with immigrants being an integral part of Canada's economic growth. In the first four months of 2020, Canada welcomed over 74,000 new permanent residents.[7] Since 2001, Canada has averaged 250,000 new immigrants per annum, but the Liberal Government has established 300,000 new immigrants per annum as the new normal going forward.[2] The growing number of immigrants can be attributed to Canada's liberal immigration policies set forth by Immigration, Refugees and Citizenship Canada (IRCC).

Definition: Skilled Immigrants

Skilled immigrants are immigrants who have skills, knowledge, and experience in their work. The Government of Canada labels Federal Skilled Workers as persons with suitable education, work experience, age, and language abilities in English or French.[8] Skilled immigrant workers are becoming increasingly important in Western labor forces, as they fill shortages in the workforce while being vital for economic growth.[1][9]

Definition: Employment Discrimination

Employment Discrimination is a form of discrimination by employers based on race, gender, religion, disability, age, sexual orientation, or gender identity.

The Skill Paradox

In absolute terms, the employability of immigrants increases as they attain more education and skills. However, their employability decreases in relative terms to local candidates who receive similar skills and training. For those in Canada's labor force who do not hold a degree, diploma, or certification, employment rates are 61.3% for non-immigrants and 61.9% for immigrants. Conversely, for those who do hold a degree, diploma, or certification, employment rates are 90.9% for non-immigrants and 79.8% for immigrants. This gap of 11.1% is the skill paradox that highlights the employment discrimination faced by skilled immigrants in Canada.[1]

Negative Impacts of Employment Discrimination Against Skilled Immigrants in Canada

Economic Losses

The economic losses in both unemployment and underemployment of skilled immigrant workers in Canada is estimated to be over $11 billion CAD annually (calculated in lost earnings from immigrants working jobs below equally qualified non-immigrants).[3]

Poor Mental Health

Some skilled immigrants report feeling undervalued and hopeless in the job search process. In Quebec, Abdul Waheed wishes provincial politicians helped skilled immigrants like him in the daunting job search process. He has two master's degrees, language proficiency in French and English, and has sent out hundreds of resumes. He only received a job offer at a call centre, which has resulted in him feeling dismay and despair.[10]

Difficulties in accessing work in Canada results in many immigrants' future earnings and job prospects being negatively impacted. These lost earnings and perceptions of employment discrimination negatively impact the health of skilled immigrants, while also leading to diminished job satisfaction, and commitment, and overall dissatisfaction with life.[5]

Causes of Employment Discrimination

Non-English Sounding Names

According to a study that analyzed over 13,000 resumes, applicants with English sounding names are 39% more likely to receive callbacks than applicants with Pakistani, Chinese, or Indian names. Several employers assumed that an applicant with an Indian, Pakistani, or Chinese name had poor language skills.[11] The same employers failed to acknowledge that the costs to acquire more information about language skills were low.[4]

Lack of Canadian Work Experience

Many skilled immigrants who have just landed in Canada find that their previous work experience in foreign countries is often discounted.[12] The same study that analyzed over 13,000 resumes found that callback rates dropped 5.1% for applicants with only foreign experience compared to those with Canadian experience.[13] Applicants to jobs are asked to show a track record of working in Canada in order to demonstrate that they have the required language skills and ability to perform in a Canadian work environment.[12]

Racism & Discrimination

Racism is shifting towards more subtle and covert forms in daily interactions. Discrimination on the account of racism continues to be reported by internationally trained immigrants in Canadian workplaces. In Canada, the practice of relying heavily on professional connections for references in the job search process could be seen as discriminatory, as new immigrants do not have such connections.[14]

Ending Employment Discrimination

Employment Discrimination towards skilled immigrants is a rooted problem in Canada, which will require change from companies as well as policy makers in order to solve.

HRM Strategies

An HRM Strategy is a business's overall plan for managing its human capital interests and aligning them with its business goals. By ensuring HRM Strategies are inclusive and non-discriminatory, companies can reap the benefits of having immigrant talents, while maintaining a balanced playing field for both local candidates and immigrants.[15] One potential strategy includes employers masking applicant names on resumes and cover letters when looking over job applications, which would prevent them from discriminating a candidate based on their name. Another potential strategy includes making simple phone calls to candidates when deciding on call-backs for job interviews, which would allow employers to learn about a candidate's language proficiency without assuming it.[16]

Ultimately, it costs money for companies to create diverse employment strategies; companies will mostly be inclined to push for inclusivity only if they see incentives. For example, a bank trying to capture customers from China may be incentivized to hire Chinese bank staff in order to attract those clients. Some people believe executives should create diverse hiring programs not only for economic benefit, but also for better morals and social responsibility.[17]

Policy Changes

Canada's Employment Equity Act (EEA) is believed to be outdated and limited in its ability to bring more diversity into Canadian workplaces. The EEA's purpose and goal is to ensure job applicants are not denied employment opportunities for reasons unrelated to ability. However, the program is limited in its federal legislation, which implies it can only enforce diversity and inclusion in industries federally regulated by the Canadian constitution. These industries are limited to financial services, broadcasting, transportation, and telecommunications. When the EEA was created in 1986, it was mandated that the program would be reviewed every five years. However, the program has only been reviewed once by Prime Minister Jean Chretien in 1995. Consistent reviews to the EEA will ensure that the program is modernizing and expanding as more immigrants enter the Canadian workforce each year.[17]

Implementing soft skills training in employment readiness services for immigrants when they arrive in Canada will be a significant step towards reducing employment discrimination. Most studies on workplace discrimination do not take into account the subtle forms of racism faced by stigmatized individuals. Government-supported workshops targeted towards employers can raise awareness for subtle biases and highlight the downsides of discriminatory actions in the workplace.[18]

References

  1. ↑ 1.0 1.1 1.2 Dietz, Joerg (13 Jan 2015). "The skill paradox: explaining and reducing employment discrimination against skilled immigrants". The International Journal of Human Resource Management. 26: 1318.
  2. ↑ 2.0 2.1 "How Many Immigrants Come to Canada Each Year?". 21 Aug 2019. Retrieved 29 Jul 2020.
  3. ↑ 3.0 3.1 Reitz, Jeffrey (3 Jan 2013). "Immigrant Skill Utilization: Trends and Policy Issues". International Migration & Integration. 15: 19.
  4. ↑ 4.0 4.1 "Discrimination Against Skilled Immigrants in the Canadian Labor Market". Poverty Action Lab. Retrieved 29 Jul 2020.
  5. ↑ 5.0 5.1 George, Usha (Jan 2014). "Discrimination at Work: Comparing the Experiences of Foreign-trained and Locally-trained Engineers in Canada". Canadian Ethnic Studies: 6–16.
  6. ↑ "Focus on Geography Series, 2016 Census". Statistics Canada. Retrieved 29 Jul 2020.
  7. ↑ El-Assal, Kareem (14 Jun 2020). "Where are Canada's immigrants coming from in 2020?". CIC News. Retrieved 29 Jul 2020.
  8. ↑ "Who is a federal skilled worker?". Government of Canada. Retrieved 29 Jul 2020.
  9. ↑ Esses, Victoria (1 Oct 2014). "How Discrimination Against Ethnic and Religious Minorities Contributes to the Underutilization of Immigrants' Skills". Policy Insights from the Behavioral and Brain Sciences. 1: 55.
  10. ↑ Hendry, Leah (25 Sep 2018). "'I didn't come here to live this kind of life': Skilled immigrants on desperate hunt for jobs in Quebec". CBC News. Retrieved 29 Jul 2020.
  11. ↑ Oreopoulos, Philip (Nov 2011). "Why Do Skilled Immigrants Struggle in the Labor Market? A Field Experiment with Thirteen Thousand Resumes". American Economic Journal: Economic Policy. 3: 160.
  12. ↑ 12.0 12.1 George, Usha (Jan 2014). "Discrimination at Work: Comparing the Experiences of Foreign-trained and Locally-trained Engineers in Canada". Canadian Ethnic Studies: 4.
  13. ↑ Oreopoulos, Philip (Nov 2011). "Why Do Skilled Immigrants Struggle in the Labor Market? A Field Experiment with Thirteen Thousand Resumes". American Economic Journal: Economic Policy. 3: 162.
  14. ↑ George, Usha (Jan 2014). "Discrimination at Work: Comparing the Experiences of Foreign-trained and Locally-trained Engineers in Canada". Canadian Ethnic Studies: 4–5.
  15. ↑ Dietz, Joerg (13 Jan 2015). "The skill paradox: explaining and reducing employment discrimination against skilled immigrants". The International Journal of Human Resource Management. 26: 1327.
  16. ↑ Oreopoulos, Philip (Nov 2011). "Why Do Skilled Immigrants Struggle in the Labor Market? A Field Experiment with Thirteen Thousand Resumes". American Economic Journal: Economic Policy. 3: 169.
  17. ↑ 17.0 17.1 Collie, Meghan (25 Jun 2019). "Canada has a discrimination problem when it comes to hiring — here's why". Global News. Retrieved 29 Jul 2020.
  18. ↑ Esses, Victoria (1 Oct 2014). "How Discrimination Against Ethnic and Religious Minorities Contributes to the Underutilization of Immigrants' Skills". Policy Insights from the Behavioral and Brain Sciences. 1: 60.
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