A Portrait of Early Settlement Experiences: Finding employment

Participation in the labour force is an important indicator of settlement. It is associated with economic integration, financial independence and with social integration. It is regarded by most immigrants of working age as central to their successful settlement. The Canadian public often expresses strong expectations with respect to newcomers' labour force achievements.

The analysis based on the first wave of the Longitudinal Survey of Immigrants to Canada (LSIC) investigates the initial settlement period—the first six months of newcomers' lives in Canada . During this short period of time, most immigrants have several tasks to complete including finding a new job, a place to live and a school for their children or themselves. As a result, labour force participation among immigrants tends to be low in the initial adjustment period, but it is expected to gradually increase over time. Entering the job market (i.e., obtaining paid work) is perhaps, for a large number of immigrants, a major goal to achieve in the short-term. Obtaining employment comparable to that held prior to migration, or consistent with skill level or field of interest, and general career advancement are regarded as longer term objectives.

Important note on the LSIC labour force rates

The LSIC was designed to allow proper measurement of employment rates—to do this, start and end dates were collected for every job spell. However this is not true for unemployment and labour force participation rates. Because respondents were not asked if they were looking for a job during every jobless spell, the LSIC does not differentiate between unemployment and out of the labour force status.

In an attempt to approximate labour force participation rates and unemployment rates at the time of interview, the LSIC has derived its own labour force status. Hence if a person is not working at the time of the interview but has been employed at any given time since arrival to Canada, then this person was considered in the labour force. Those who never worked since arrival were asked if they had ever looked for a job. If so, they were classified as unemployed.

Consequently, the LSIC participation and unemployment rates may be overestimated.

We strongly recommend that these differences are noted if comparing participation or unemployment rates data from the LSIC and other sources.

Most new immigrants tried to enter the labour market

During the first six months, an estimated 71% (116,700) of immigrants in the LSIC tried to find employment, this varies by immigration category. Not surprisingly a high percentage of skilled worker principal applicants (SPAs) tried to enter the labour market (90%), given that most of these immigrants are selected based on their labour market qualifications. Smaller proportions of immigrants in the family category (61%), skilled worker spouse and dependants (66%) and refugee categories (47%) tried to find employment during their first six months in Canada.

The data from the first set of interviews show that a higher proportion of males than females tried to enter the labour force (82% and 60% respectively). In addition, higher proportions of immigrants in the prime working age group of 25 to 44 years looked for employment during the first six months in Canada.

Immigrants used a number of methods in order to find employment. The most popular of these was applying directly to employers, followed closely by looking in newspapers, asking friends and relatives, and looking on the internet.

The way in which immigrants looked for employment differed by immigration category. The majority of skilled worker principal applicants reported searching the internet (64%) followed by looking in newspapers (58%) while skilled worker spouses and dependants reported looking in newspapers (52%) followed by applying directly to employers (48%). In contrast, immigrants in the family category most often asked friends and relatives about job prospects (49%), followed by applying directly to employers (48%). For refugees, asking friends and relatives about job prospects was the most common way they tried to find a job (48%).

As mentioned earlier, a higher proportion of males tried to find employment during the first six months—82% males and 60% females (Table 8.2). However, the means of looking for employment differed slightly; a higher proportion of males applied directly to employers or looked in newspapers.

Entering the labour force a challenge

Entering the labour market is a challenge for new immigrants. At the time of interview, roughly 44% of all immigrants were employed, 26% were unemployed and 30% were not in the labour force. By comparison, results from The Longitudinal Survey of Immigrants to Australia (LSIA 2000) showed that after six months in Australia, 49% were employed, 10% were unemployed and 41% were not in the labour force.

Of the 49,000 immigrants who were not participating in the labour force, 42% were students and the same proportion were homemakers—the other 16% were either retired or had other reasons for not participating in the labour market.

There are a higher proportion of females not in the labour force than males (71% versus 29% respectively). The gender makeup of students and homemakers support these results. Of particular note, females accounted for 94% of homemakers and 59% of students, while males accounted for a slightly higher percentage (53%) of retired immigrants. A possible explanation for this is that females may view themselves as homemakers all their life, and never as retired.

Labour market characteristics by immigration category

The proportion of people in the labour force varies by immigration category. This is not surprising, given the wide range of reasons for coming to Canada . The vast majority of skilled worker principal applicants entered the labour force after six months, while a lower proportion of immigrants in the family category and refugees did.

As seen in Table 8.4, the majority of skilled worker principal applicants were participating in the labour force at the time of interview (91%), which is not surprising given that immigrants in this category are chosen for their labour market suitability. In contrast, the skilled worker spouse and dependants (63%), immigrants in the family category (59%), and refugees (44%) had fewer proportions participating in the labour force (many of whom were students, homemakers and retired individuals).

While refugees had the lowest labour market participation rate after the first six months in Canada, 70% of refugees who were not in the labour force said their main/major activity during the initial months after landing was studying. This is the largest proportion among all immigration categories and suggests that increased labour market participation should evolve over time as courses are completed. The second and third wave of the LSIC interviews will provide more insight on the progression of labour market integration of refugees and of all immigrants.

As shown in Table 8.5 the employment rate for new immigrants is 44%, a figure that is lower than the Canadian average of 61%¹. In addition, the unemployment rate for newly arrived immigrants is 37%, which suggests that recent immigrants are having difficulty in finding employment, or that they are occupied with other necessities such as finding adequate housing.

By category, the unemployment rate for skilled worker principal applicants is equal to that of immigrants in the family category (34%), but lower than that of skilled worker spouse and dependants (43%). Refugees face even greater obstacles in terms of finding employment, especially during the first six months in Canada and this is reflected in the higher unemployment rate for this group of immigrants (51%).

Employment rates by immigration category

Figure 8.1 shows the employment rates by immigration category on a week-by-week basis. Skilled worker principal applicants have the highest employment rates at any one point in time throughout the first six months².

All categories show a steady progression of being employed as time goes on and this is an encouraging sign, given that integration into the labour market is a major hurdle for many new immigrants to Canada. The chart shows a continuous upward trend for all categories and suggests improved employment prospects should evolve in the second round of LSIC interviews³.

Labour market characteristics by gender and age

Results from the first six months in Canada indicate that female immigrants appear to have greater difficulty finding employment than their male counterparts. As shown in Table 8.6 the employment rate for males was 54% while for females it was 34%.

There are differences in labour force characteristics by age. Immigrants in the prime working-age group of 25 to 44 years had the highest participation and employment rates. Almost eight in 10 in this age group (78%) were in the labour force, while roughly six in 10 of immigrants aged 45 to 64 and 15 to 24 were in the labour force. Half of the recent immigrants in the 25 to 44 age group were employed six months after landing, compared to just over one-third (36% and 35% respectively) of those aged 15 to 24 years and those aged 45 to 64 years.

Despite having the highest participation and employment rates, immigrants in the prime working-age (25 to 44) group had an unemployment rate of 36% at the time of interview. The unemployment rate was 39% for immigrants between 15 and 24 years of age and 41% for those between 45 and 64.

Labour market characteristics by region

The LSIC data indicate that the Prairies have the highest employment and lowest unemployment rates. This is consistent with the Labour Force Survey (LFS).

Labour market outcomes were particularly weak in Quebec . Immigrants in that province had an employment rate of 32% (below the national rate of 44% for the LSIC immigrants) and an unemployment rate of 53% (above the national rate of 37% for the LSIC immigrants).

Labour force status for immigrants who settled in major Census Metropolitan Areas (CMAs) mirror the trends at the regional level. Those who chose to settle in Calgary benefited from the best labour market scenario among all new immigrants. In addition, the data show that immigrants in Toronto fared better than other major metropolitan centres such as Vancouver and Montreal, with higher participation and employment rates and a lower unemployment rate.

The variability in labour force status may account for some of the differences in the immigrants' intended destination and their place of residence at the time of interview. For example, a higher number of immigrants settled in Toronto than originally intended. In contrast, fewer immigrants settled in Vancouver and Montreal than originally intended. In smaller CMAs such as Calgary, Ottawa, and Edmonton, the intended destination and place of residence at time of interview are very similar. Waves two and three will allow for a more in-depth look at labour mobility.

Labour market characteristics by official language knowledge

Data presented in this section provide support to the premise that knowledge of an official language plays a key role in terms of participation in the labour market, and may also be reflective of regional linguistic needs and abilities. However, readers are also reminded that when doing analysis by knowledge of official language it is important to note the regional differences between Quebec and the rest of Canada from Adapting to a new linguistic environment.

Six months after arrival 75% of all immigrants who could converse in at least one official language were in the labour force. However, only 45% of immigrants who could not converse in either official language were in the labour force. The same trends were also evident for employment rates. Six months after arrival, immigrants who could converse in at least one official language had an employment rate of 48%, while immigrants with neither official language had an employment rate of 28%.

Labour market characteristics by major world region and country of origin

Immigrants in the LSIC arrived in Canada from various regions around the world. Labour force participation rates were comparable for immigrants from most world regions (69% to 74%), with the exception of Oceania that had a participation rate of 83%. Employment rates, on the other hand, varied considerably by region. Immigrants from Oceania and North America recorded the highest employment rates (68% and 61% respectively), while immigrants from Africa had the lowest employment rate (35%).

Labour force rates for the ten most common countries of origin vary considerably. For example, six months after their arrival 83% of immigrants from Philippines were in the labour force, 67% were employed and the unemployment rate for this particular group was well below average (19%). By comparison, figures from the leading country of origin (China) were not as promising, with a participation rate of 69%, an employment rate of 38% and an unemployment rate of 44%.

Labour force status and hours worked

At the time of the interview, the majority of working immigrants held full-time jobs (79%) while the remaining 21% worked part-time⁴. Immigrants who entered the country as skilled worker principal applicants were more likely to be working in full-time jobs. In fact, 85% of skilled worker principal applicants held full-time jobs, a higher proportion than the 66% of skilled worker spouse and dependants' category and 78% of immigrants in the family category. The proportion of refugees with full-time positions was lower than most other categories at 68%.

The majority of respondents worked between 30 to 44 hours per week. However, the number of hours worked varied by category with a higher proportion of skilled worker principal applicants working between 30 to 44 hours per week (69%), compared with 58% of skilled worker spouse and dependants. Almost one fifth of immigrants (18%) reported working more than 45 hours per week. Approximately one in five immigrants in the family and skilled worker spouse and dependant categories reported working more than 45 hours per week.

Pre and post-migration shift from higher to lower-skilled occupational groups

At the time of the interview, an estimated 72,100 immigrants were employed. The jobs occupied by immigrants ranged across different occupational classifications and skill levels and there are some specific characteristics worth noting. Sales and service occupations were the most common type of job held by new immigrants. Roughly three of every 10 employed immigrants held a job in sales and services, and another two of every 10 immigrants held positions in the processing, manufacturing and utilities category.

After six months in Canada the LSIC data shows that there was a pre and post migration shift from higher to lower-skilled occupational groups⁵.

At the time of interview, 14% of working immigrants had jobs in natural and applied sciences whereas prior to arrival, 26% had held comparable jobs. A similar pattern is seen for those working in management, health, social sciences, education and government service categories with smaller proportions of immigrants working in these occupations following landing.

In contrast, a higher proportion of working immigrants are now employed in sales and service occupations (30%) and processing, manufacturing and utilities (20%). Generally, occupations in sales and services and in processing, manufacturing and utilities tend to be classified as lower-skilled occupations.

These results suggest that immigrants may be having difficulty entering certain segments of the labour market. This might be reflective of problems getting credentials or foreign work experience recognized or perhaps because of the short period of time the immigrants have been in Canada —six months. A natural progression to higher-skilled jobs is expected as the length of time in Canada and job experience increase.

Many immigrants may be working in lower-skilled occupations to secure entry to the labour market

In addition to the skill types identified above, the LSIC survey also identified 2-digit Standard Occupational Classifications (SOC) for employed immigrants. An examination of the data reveals that the most common jobs held by new immigrants are classified as lower-skilled occupations. For example, six months after arrival the most common occupational groups reported by immigrants were sales and service (13%), followed by professional occupations in natural and applied sciences (11%) and by clerical occupations (11%). Note that professional occupations in natural and applied sciences are the only "high-skilled" occupational group within the top 5.

By gender, sales and service occupations ranked as the most common occupation for females (16%) and second for males (11%). However, professional occupations in natural and applied sciences was the most common occupation for males (14%) but was not in the top five for females. In addition, females were much more likely to be employed in clerical occupations (14%) as compared to males (8%).

The results of the first wave of the LSIC seem to suggest that many immigrants may be working in lower-skilled occupations to secure entry to the labour market. This is also evident for skilled worker principal applicants, who are very well educated but at the time of interview, a high number occupy lower-skilled occupations.

The most common occupational group reported by SPAs was professional occupations in natural and applied sciences—accounting for 18% of all jobs in this immigration category. While this might seem like an impressive result, one has to take into account the reference period during which these immigrants landed (October 2000 to September 2001). This was the tail end of a period of severe labour market shortage for many "high-tech" occupations (which are concentrated in professional occupations in natural and applied sciences) and entry into this segment of the labour market should have been easier during that time⁶. Other common occupations reported for SPAs were sales and service and clerical occupations. It will be interesting to track the progression of these occupations during the subsequent waves of interviews.

Many skilled worker principal applicants working in different occupations than intended

In the LSIC, 57,600 immigrants entered the country as SPAs. Six months after arrival over 90% (52,300) were participating in the labour force, of whom 34,300 had found jobs. However, many of the jobs these immigrants found were in different occupational groups than originally intended.

The SPA category is a well-educated segment of the immigrant population and their intended occupations reflect this. Professional occupations in natural and applied sciences were, by far, the most common intended occupational group for SPAs (22,000). Other popular choices of intended occupations included business and finance (3,400), technical occupations related to natural and applied sciences (2,500) and teachers and professors (2,200).

Out of the five most common intended occupational groups reported, only clerical occupations are considered to be lower-skilled, usually requiring secondary schooling and/or occupation specific training. The other top occupational groups are highly-skilled occupations, usually requiring college or university education. This presents an optimistic picture in terms of intended occupations for the immigrant population. However, results from the first wave of the LSIC interviews show that SPAs are having difficulty securing employment in their intended occupation.

Approximately 22,000 SPAs entered the country with the intention of working as a professional in natural and applied sciences (an occupational group that is highly concentrated with engineers and computer professionals). After six months, 12,900 found employment, of whom 38% (4,900) were in the same occupational group as originally intended. The remaining 62% (8,000) found jobs in other occupations such as clerical occupations, technical occupations in natural and applied sciences, machine operators in manufacturing and sales and service occupations. Similar findings exist among many higher-skilled intended occupational groupings and suggest many SPAs are taking lower-skilled jobs in order to start work.

Immigrants who intended to work as teachers and professors fared somewhat better than other occupational groups. Approximately 2,300 SPAs intended to be teachers and professors and 1,500 of these immigrants found jobs after six months in Canada. However, for this group of immigrants, the majority (71%) found jobs in their intended occupational field and the incidence of unemployment was significantly lower.

The variation in labour market outcomes among different intended occupational groups warrants some additional research. This may be because many new immigrants are taking lower-skilled jobs in order to enter the work force or may reflect a period where new immigrants are waiting for foreign skill or credential recognition or improving their language skills. Future waves will provide a better understanding of this.

One quarter of new immigrants held more than one job since arrival

Finding employment during the first six months after arriving in Canada can be difficult for many immigrants. Those who found jobs did not always find the "ideal" job and this may be reflected in the number of jobs (or businesses) held by immigrants during their first six months in Canada.

Of the immigrants who reported having a job (or business) since coming to Canada , 75% stated they had one job, 20% had two jobs and 5% reported having three or more jobs since their arrival. The number of jobs held by immigrants is fairly consistent across immigration categories. The transitory nature of the labour market for immigrants is evident from the numbers, which show that 25% of employed immigrants had two or more jobs within the first six months of landing in Canada⁷. In addition, 41% of employed immigrants stated that they were looking for another job at the time of interview.

Three quarters of new immigrants satisfied with their jobs

Despite the fact that a high number of immigrants were working in lower-skilled occupations, experiencing high job turnover or looking for another job, the majority of immigrants seemed to be happy with their main jobs. Three quarters of immigrants reported being either very satisfied or satisfied with their main jobs. Almost one quarter (24%) of skilled worker principal applicants reported being very satisfied while skilled worker spouses and dependants had the highest share of dissatisfied workers (23% dissatisfied and 7% very dissatisfied).

Immigrants in the family category reported relatively high levels of satisfaction (21% very satisfied and 60% satisfied). This may reflect being reunited with family members and finding work.

A higher proportion of immigrants with similar occupations, pre and post migration are more satisfied than those working in different occupational groups. Almost nine in 10 (87%) immigrants working in the same occupation were either very satisfied or satisfied with their main occupation. In comparison, 66% of those who were employed in different occupations were either very satisfied or satisfied with their current occupation. Respondents who were working at the time of interview, but recorded no previous job also seemed to be happy with their current occupation. Over 80% in this group were either very satisfied or satisfied with their main job.

Most immigrants who left a job did so of their own volition

Despite being in the country for only six months, a number of immigrants had already moved on from their initial jobs. Employment could have been terminated by the choice of the immigrant, by the employer or a variety of other circumstances. Approximately 27,000 immigrants reported leaving a job since coming to Canada—of these, 64% decided to leave the job while 35% reported that the employer had terminated their job. A slightly higher proportion of immigrants in the family category and refugees reported that their employment had been terminated by the employer.

Immigrants who decided to leave a job did so for a number of reasons—39% found a new job, 23% were dissatisfied with their job and decided to leave, and 12% returned to school. The remaining 26% left for a number of other reasons, including family-related reasons, illness, transportation problems, retirement and immigrants deciding to move.

Reasons for leaving a job differed by gender, higher proportions of males reported leaving a job because they found new employment, while higher proportions of females reported leaving a job in order to care for children or other family members.

Over 11,000 immigrants in the LSIC reported having their job terminated by the employer. The most common reasons for job termination by an employer were due to a layoff/business slowdown (36%) or that the job was temporary (36%). An additional 17% were let go by the employer due to the seasonal nature of the employment. Job dismissal accounted for a very small proportion of overall terminations (less than 5%).

The reasons for having a job terminated also varied by gender. Males were more likely to be laid-off while females were more likely to be let go due to temporary or seasonal employment.

Problems or difficulties finding employment

Although a large proportion of immigrants in all categories reported at least one problem or difficulty, it was most prevalent among skilled worker principal applicants (75%) and skilled worker spouse and dependants (74%). For skilled worker principal applicants this may be a result of their initial labour market expectations after being selected based on their labour market qualifications.

As shown in Table 8.17 lack of Canadian work experience and difficulty in transferring foreign credentials are the two most common difficulties reported by skilled worker principal applicants. In contrast, language problems are the most commonly cited difficulty for refugees and immigrants in the economic and family categories. For example, 44% of all refugees who tried to find employment reported lack of official language knowledge as the most serious problem in terms of finding employment.

Conclusion

Six months after their arrival most immigrants had tried to enter the labour market, of those 44% were employed and 26% unemployed. By category, skilled worker principal applicants had the highest participation rate while refugees had the lowest. Immigrants in the prime working age and males were most likely to be employed. By region, the Prairies had the highest employment and lowest unemployment rate.

Results from the first wave of the survey suggest that entering the labour market is one of the hardest tasks for all immigrants. Among the 116,700 immigrants who tried to enter the labour market 70% reported at least one problem or difficulty. Lack of Canadian job experience, lack of foreign credentials recognition or work experience and lack of knowledge of at least one official language were among the most serious cited problems or difficulties reported.

Despite the fact that immigrants experienced a shift to lower skilled occupations since their arrival, the majority of immigrants reported that they were either very satisfied or satisfied with their jobs. The second and third wave of the LSIC interviews will provide more insight on the progression of labour market integration.

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Finding employment