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Immigrants Surpass Canada-Born in Workforce Participation

Immigrants outperform their Canadian counterparts in terms of labor market participation. This is especially true for immigrant workers aged 55 and older, who have chosen to continue working and retire later.

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A longer career duration for immigrant workers is also accompanied by better economic outcomes. The wage gap between immigrant workers and those born in Canada has been narrowing since the mid-2010s and is at its lowest level in two decades.

The addition of more immigrants to Canada’s workforce is helping to alleviate demographic pressures created by the retirement of baby boomers, while the labor force participation rate of Canadian-born workers continues to decline.

The labor force participation rate of immigrants surpassed that of Canadian-born workers by 2%

The aging population poses challenges to the economy, as the demand for goods and services will continue to grow at a faster pace than the workforce needed to meet it. This problem is likely to worsen in the long term as birth rates in Canada remain below replacement levels. Additionally, governments find it difficult to increase funding for public services such as healthcare from a shrinking tax base (relative to the size of the population).

Immigration has long been considered a way to offset the impact of aging on the population. The labor force participation rate of Canadian-born individuals has continued to decline as more workers retire, but it has increased for immigrants. By the end of 2020, the proportion of immigrants participating in the labor force exceeded that of the Canadian-born population. In early 2024, the labor force participation rate of immigrants surpassed that of Canadian-born workers by 2%.

Many immigrants work for Canadian companies, where they receive good salaries and stable employment. If you are a skilled professional and wish to relocate, contact Canadian Visa Expert.