Statistics Canada reports a significant rise in unemployment rates for recent immigrants, reaching 12.6% in June
Newer immigrants in Canada are facing significant challenges as the labour market experiences a downturn, reports The Globe and Mail.
Statistics Canada data shows that the unemployment rate for recent immigrants—those who became permanent residents within the last five years—rose to 12.6 percent in June, marking an increase of four percentage points from the previous year.
These figures are based on three-month moving averages and are not adjusted for seasonality.
In contrast, the unemployment rate for Canadian-born individuals was 5.5 percent in June, slightly up from 5 percent in June 2023. This disparity in unemployment rates is the largest since August 2014.
The Canadian labour market has weakened over the past two years as companies face higher interest rates, making them more cautious about hiring. Concurrently, a surge in immigration has contributed to a substantial increase in job seekers.
Desjardins Securities economists Royce Mendes and Tiago Figueiredo noted in a recent research report that the significant rise in immigration has outpaced the job growth needed to maintain a steady unemployment rate.
They explained, “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.”
The weakened job market is also affecting other groups. The youth unemployment rate has climbed to 13.6 percent, the highest since spring 2016, excluding the initial pandemic years of 2020 and 2021.
Additionally, the unemployment rate for Black Canadians aged 25 to 54 reached 11.9 percent in June, an increase of 4.4 percentage points from the previous year.
“The labour market is fairly solid for those who already have a job, but it’s become extremely tough for those looking for work,” the Desjardins economists emphasized.
