IMMIGRANT LABOUR MARKET INTEGRATION IN YORK REGION AND TORONTO: Identifying Needs and Opportunities for Small- and Medium-Sized Enterprises

Transcription

1 IMMIGRANT LABOUR MARKET INTEGRATION IN YORK REGION AND TORONTO: Identifying Needs and Opportunities for Small- and Medium-Sized Enterprises Social Enterprise for Canada August 29, 2011 Elmer Mascarenhas Research Analyst Social Enterprise for Canada 25 Years of Service Excellence

2 Published 2011 Printed in Canada ISBN (PDF)

3 ACKNOWLEDGEMENTS Without the generous participation from small- and medium-sized enterprises (SMEs) in York Region and Toronto, this research would not have been possible. We are sincerely grateful to businesses as well as a variety of other community agencies that participated in our focus groups, in-depth interviews, surveys and stakeholder consultations. Sincere thanks to the Ontario Ministry of Training, Colleges and Universities for their support in this initiative. Further, thanks to the significant contributions from the Labour Market Partnership team at Social Enterprise for Canada, consisting of: Acknowledgements Nicole Darbey Labour Market Partnership Project Lead Judy Sawhney Vice President Enterprise Bruce Millar Consultant Yogesh Shah Consultant Social Enterprise for Canada 25 Years of Service Excellence Identifying Needs and Opportunities for Small- and Medium-Sized Enterprises SOCIAL ENTERPRISE FOR CANADA Page 1

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5 TABLE OF CONTENTS 1.0) Executive Summary 4 2.0) Purpose 6 3.0) Rationale 7 4.0) Context 8 4.1) Demographic Changes 8 4.2) The Importance of Immigrant Labour Market Integration for York Region ) The York Region Economy ) Future Changes in York Region s Economy ) How Immigrants are Faring in the Labour Market ) Labour Market Outcomes of Immigrants ) Immigrant Labour Market Outcomes are Declining ) Challenges to Address ) Issues Encountered by IEPs ) Gaps in Service for IEPs in York Region ) Supports for Employers ) Research Results: Input from Small- and Medium-Sized Employers ) Methodology ) Key Findings from Focus Groups Views from Employers ) Key Findings from In-Depth Interviews Views from Employers ) Key Findings from Survey Views from Employers ) Key Themes ) Implications/Discussion ) Recommendations 29 Table of Contents Identifying Needs and Opportunities for Small- and Medium-Sized Enterprises SOCIAL ENTERPRISE FOR CANADA Page 3

6 1.0) Executive Summary 1.0) EXECUTIVE SUMMARY Purpose Social Enterprise for Canada has undertaken research to investigate key barriers faced by small- and medium-sized enterprises (SMEs) in the hiring of internationally educated professionals (IEPs). SMEs comprise the majority of the Canadian and local economy, and data indicates that skilled immigrants are not being hired by many smaller organizations. Skilled immigrants often encounter additional barriers when trying to integrate into the Canadian labour market, and this is reflected in their higher rates of unemployment and under-employment than the Canadian-born/trained population. The goal of this report is to draw attention to the needs of SMEs, as well as tools and strategies that can improve the understanding of foreign credential recognition and experience, thereby enhancing the labour market integration of new immigrants in York Region and Toronto. A range of SMEs in York Region and Toronto were consulted through focus groups, one-on-one interviews and surveys. Through this process, valuable insight about various barriers, needs, tools and strategies from the perspective of small- and medium-sized employers in York Region and Toronto was garnered. Context The demographic profile of York Region and Toronto is changing significantly. Approximately one-third of the region s population is part of the baby boomer generation and is expected to retire in the coming years. As these individuals retire, the demand for talent will be an increasingly significant issue for businesses. In addition, the increased mobility of the workforce, combined with the decline in Canadian birth rate, will lead to a supply-demand imbalance of labour. The Conference Board of Canada estimates that the under-utilization of immigrant skills is costing the Canadian economy $3.42 billion to $4.97 billion annually. The economic outcomes of immigrants and their children will continue to be a major policy concern in Canada. Immigrants are vital in replenishing the aging Canadian workforce and contribute significantly to a robust and growing economy. Skilled immigrants have many valuable skills to offer Canadian businesses; however, employers often find understanding foreign education and work experience challenging. Employers may have difficulty determining whether individuals trained abroad have the specific skills or competencies required to do particular jobs. Immigrants are significantly more unemployed than the Canadian-born. In October 2010, the unemployment rate for the Canadian-born in the Toronto Census Metropolitan Area was 5.3%, compared to 10.7% for all immigrants. While new immigrants have had higher unemployment rates than the Canadian-born in the past, the gap has widened since the recession beginning in Equally important is the fact that new immigrants are significantly more under-employed than the Canadian-born. For example, recent immigrants who came to Canada with a university degree had a median income of $24,636 in 2005, compared to the median income of $51,656 for people who were born in Canada and who have a university degree. Immigrants who had been in Canada for more than five years came out in the middle with a median income of $36,451 for those with a university degree. Key findings Views from Employers Communication issues, particularly relating to language, were reported to be the most significant barrier with regard to the hiring of IEPs in SMEs. Furthermore, recognition of foreign credentials/ uncertainty about foreign standards was commonly mentioned, as were cultural differences, prejudice and stereotyping. The time and resources needed to bridge/re-qualify newcomers was also mentioned as a significant issue. SMEs often have trouble verifying education and work experiences gained abroad. The vast majority of SMEs have not started to plan for demographic changes in the workforce and many lack awareness about how these changes will impact their business moving forward. A significant proportion of SMEs perceive more risk in hiring IEPs. Page 4 SOCIAL ENTERPRISE FOR CANADA IMMIGRANT LABOUR MARKET INTEGRATION IN YORK REGION AND TORONTO:

7 Assistance with language training and competency assessment were seen by employers to be most valuable in the recruitment, training and retention of IEPs. Many SMEs lack knowledge about the availability of these services and how to access them. Awareness about the agencies and resources that can provide assistance was generally low. Many SMEs expressed interest in resources to help them hire IEPs, such as a list of IEP portfolios including their foreign credential assessment and validation of education and experiences abroad, as well as an evaluation of IEP candidates to match their skills with those that local businesses require and can tap into. Generally, free/low-cost job posting boards and a resume database were seen to be of value. Also valued were information about foreign credential recognition, help navigating existing resources and services, and assistance verifying education and work experience gained abroad. Informal hiring methods are commonly used by SMEs. Participants noted that there are services and resources to help immigrants integrate into the workforce (though it is not necessarily easy to navigate these services) but there are few resources to help employers in the hiring of new immigrants. 1.0) Executive Summary Recommendations for Social Enterprise for Canada Our research indicates that many SMEs would find significant value in knowing about and being able to easily access tools online in a one-stop repository to help them hire and retain internationally trained/ educated professionals. Due to technological advancement and time constraints for many SMEs, web-based toolkits are effective for businesses to access the resources they need for their hiring and talent management purposes. Social Enterprise for Canada will highlight and offer online tools to help employers with their hiring processes and retention strategies. This will be done through a website that will be available for public access beginning in December, Some of the key areas of focus are: changing perceptions among SMEs o by identifying the advantages of hiring IEPs and providing information about the importance of planning for the future to prepare for impending skills shortages helping SMEs implement effective human resources practices o by providing information about and access to tools for culturally sensitive human resources practices, providing competency-based tools for workforce management, and promoting the creation of standards/benchmarks for competency requirements for positions assisting with foreign credential and experience issues o by providing information regarding the assessment and recognition of foreign credentials and experience, highlighting what sector councils and professional bodies are offering, and promoting the internal setting of benchmarks based on competencies to support and enhance the understanding of foreign education and work experience minimizing employment barriers related to language proficiency o by providing information and access to resources regarding cross-cultural interviewing and occupation-specific language assessment and skills training assisting with reference checks o by providing online resources and information about external services for assistance assisting with integration of cultural diversity o by highlighting cultural diversity integration programs, and providing resources to help enhance leadership and high performance within a culturally diverse workforce A featured strategy on the website will involve a competency-based approach to defining job and work requirements. Competency-based assessment can: help businesses to attract and foster the behaviours and skills needed to achieve success and sustainability Identifying Needs and Opportunities for Small- and Medium-Sized Enterprises SOCIAL ENTERPRISE FOR CANADA Page 5

8 2.0) Purpose help businesses hire the most qualified individual for the job from their pool of candidates help businesses more easily assess the skills of internationally educated/trained professionals, which can widen the pool of qualified candidates decrease costs of employee turnover, by helping businesses to hire the right fit the first time help businesses identify their workforce skills gaps, so that training can be targeted, efficient, and cost-effective Competency-based assessment tools can assist businesses in understanding candidates foreign education and work experiences, including those gained abroad, and help identify whether specific credentials translate to particular technical skills necessary for the job. Competency-based assessment can also help businesses evaluate candidates interpersonal skills, such as communication and teaming skills, in a more objective manner. 2.0) PURPOSE This research conducted by Social Enterprise for Canada, as part of the Labour Market Partnership program funded by the Ontario Ministry of Training, Colleges and Universities, investigates the key barriers faced by small- and medium-sized enterprise (SME) employers in hiring internationally educated professionals (IEPs). The SME sector comprises the majority of the Canadian and local economy. According to the Canadian Federation of Independent Business, roughly 70% of jobs are created in this sector. 1 Large organizations, for the most part, have done a better job of integrating newcomers into the workforce and seem to have understood the need to do this given globalization and demographic trends. Many large organizations are able to integrate new immigrants into the workforce more effectively than SMEs because they are more likely to have the resources to do so. SMEs are at a disadvantage because they typically have few resources to facilitate the integration of IEPs into their business. Furthermore, many businesses lack awareness about the importance of integrating IEPs into the workforce. There is consensus that more needs to be done to examine the supports that SMEs have at their disposal to address the barriers to hiring IEPs. Effective supports, in addition to information, on both employee and employer sides are needed to better integrate new immigrants into the York Region and Toronto labour markets. The ability to effectively measure competencies and discern foreign credentials remains an important issue for many employers. The goal of this report is to draw attention to the needs of SMEs, as well as tools and strategies that can improve the understanding of foreign education and experience, thereby enhancing the labour market integration of new immigrants in York Region and Toronto. A range of SMEs in York Region and Toronto were consulted through focus groups, one-on-one interviews and surveys. Through this process, valuable insight about various barriers, needs, tools and strategies from the perspective of small- and mediumsized employers in York Region and Toronto was garnered. While there has been substantial research done with regard to the economic integration of immigrants and employment services in the City of Toronto and the Greater Toronto Area generally, there is a lack of information about York Region-specific service needs and labour market outcomes of immigrants. Further, while employment services exist to help new immigrants find appropriate work, the effectiveness of these services is brought into question, considering the labour market outcomes of skilled immigrants. This report aims to highlight: the situation with regard to the economic integration of immigrants in the region; gaps in programs and services for businesses and newcomers in the region; and input from SMEs obtained through focus groups, one-on-one interviews and surveys with respect to their perceptions about the hiring of newcomers, barriers they may face in hiring immigrants, and the specific needs of SMEs in terms of tools and resources employers would find useful to assist them in the hiring of IEPs. 1 York South Simcoe Training and Adjustment Board TOP Report Page 1. Accessed at Page 6 SOCIAL ENTERPRISE FOR CANADA IMMIGRANT LABOUR MARKET INTEGRATION IN YORK REGION AND TORONTO:

9 3.0) RATIONALE While the primary research undertaken by Social Enterprise for Canada focuses on York Region and Toronto, the secondary research outlined in this report consists of data primarily specific to York Region. This is because there is unfortunately a lack of information specific to York Region about immigrant labour market outcomes and services for employers. The context of immigration in Southern Ontario and Canada is changing. Today, Toronto receives fewer immigrants than in the past. For instance, in 2010 there was a 17% decline in the number of skilled immigrants settling in Toronto. 2 The number of newcomers selecting Toronto as home dropped from 50% in 2000 and 2001 to 32.8% of the total in 2009, according to statistics from Citizenship and Immigration Canada. 3 In contrast, there has been an increase in the number of new immigrants settling in York Region. 4 In the context of an increasing and diverse immigrant population in York Region, understanding and recognizing the abilities, skills, and needs of this population is central to providing them with the opportunities that will allow them to live high quality lives and participate fully in the region s economy. Some important facts about York Region: York Region s population is currently the fastest growing in all of Ontario and is growing at a rate of almost 3 times that of the province as a whole. 5 In 1996, the region s population was 611,700 and was 933,350 in As of 2010, the population of York Region was just above 1 million 7 and it is projected that by 2016, it will be upwards of 1.1 million. 8 The majority of new settlers in the region are immigrants (persons born outside Canada). Between 2001 and 2006, for example, immigrants accounted for nearly 60% of York Region s population growth (96,735 people). 9 While most immigrants have been in Canada for many years, nearly half the growing immigrant population are recent immigrants (persons who have arrived in Canada within the last five years). In 2006, there were 109,270 recent immigrants living in York Region, which represented 12.3% of the population. 10 This population growth brings the region a number of advantages but also presents some important challenges, if not addressed appropriately. 3.0) Rationale 2 godfrey, Tom Fewer immigrants eye T.O.. Toronto Sun. Accessed online at 3 Ibid. 4 No author given Minister of Citizenship, Immigration and Multiculturalism Jason Kenney held a teleconference to respond to recent criticisms of the federal government s cut of funding of some immigrant settlement groups. Accessed online at 5 The Ontario Trillium Foundation Community Profile: Simcoe-York. Accessed at 6 Regional Municipality of York Planning Services: York Region Employment and Population Forecasts. Accessed at 7 York South Simcoe Training and Adjustment Board Top Report Page 5. Accessed at 8 Regional Municipality of York Planning Services: York Region Employment and Population Forecasts. Accessed at 9 Regional Municipality of York. Just the Facts: About Your Community. Page 1. Accessed at Immigration+Fact+Sheet.pdf 10 Paul Anisef, Ranu Basu, Lucia Lo, Valerie Preston, Shuguang Wang Infrastructure in York Region: Analysis of Human Services. Page 6. Accessed at Identifying Needs and Opportunities for Small- and Medium-Sized Enterprises SOCIAL ENTERPRISE FOR CANADA Page 7

10 More than one in ten (12%) recent immigrants in York Region located their jobs through a variety of placement service, employment service, and community organizations. 11 One-third of recent immigrants in paid employment claim that they encountered barriers when first searching for their current job. These include the following: lack of Canadian work experience (27%), non-recognition of academic/professional credentials (22%), poor language skills (34%) and discrimination (10%). 12 Other difficulties include not knowing where or how to search (21%) and resumes not prepared in Canadian style (8%). 13 The unemployed cited similar challenges in their job search process. These difficulties, non-familiarity with the search process in particular, point to the importance of employment services in integrating newcomers into the labour market ) CONTEXT 4.0) Context 4.1) Demographic Changes The demographic profile of York Region and Toronto is changing significantly. Approximately one-third of the region s population is part of the baby boomer generation and is expected to retire in the coming years. 15 As these individuals retire, the demand for talent will be an increasingly significant issue for businesses. 16 In addition, the increased mobility of the workforce, combined with the decline in Canadian birth rate, will lead to a supply-demand imbalance of labour. Using Ontario Ministry of Finance data, the projected shortfall in the availability of workers in the province is shown to be at least 200,000, and as high as 1.8 million by 2031, depending on levels of population growth. 17 It is estimated that, in York Region, there will be a potential employment demand gap of 3%, or 23,500 jobs by 2031, which would challenge the ability of many local industries to compete globally against jurisdictions where older people are staying in the workforce. 18 Using a number of Canadian and American estimates, it is projected that by 2031 we will need 77% of our workforce to have post-secondary credentials currently, 60% of the overall Canadian workforce has these qualifications Ibid. Page Ibid. Page Ibid. Page Ibid. Page York South Simcoe Training and Adjustment Board TOP Report Page 4. Accessed at 16 RBC Financial Group The Diversity Advantage: A Case for Canada s 21st Century Economy. Page 7. Accessed at 17 Miner, Rick People Without Jobs, Jobs Without People: Ontario s Labour Market Future. Page 1. Accessed at 18 Regional Municipality of York Beyond the Boomers: A York Region Employer s Guide to the Labour Force Shortage. Page 19. Accessed at 19 Miner, Rick People Without Jobs, Jobs Without People: Ontario s Labour Market Future. Page 1. Accessed at Page 8 SOCIAL ENTERPRISE FOR CANADA IMMIGRANT LABOUR MARKET INTEGRATION IN YORK REGION AND TORONTO:

11 Figure 1: 20 Age pyramid of Ontario s population, 2009 and ) Context Figure 2: 21 Age composition of York Region residents 20 Ontario Ministry of Finance Ontario Population Projections Update : Ontario and Its 49 Census Divisions. Accessed at 21 Invest in York Population and Demographics. Accessed at Identifying Needs and Opportunities for Small- and Medium-Sized Enterprises SOCIAL ENTERPRISE FOR CANADA Page 9

12 4.0) Context 4.2) The Importance of Immigrant Labour Market Integration for York Region The effective integration of skilled immigrants into the York Region labour market is critical to the region s ability to compete globally, grow economically and continue to be a vibrant community. 22 The growth in population has contributed greatly to York Region s economic prosperity, as it has produced increased consumer demand for products and services, in addition to a greater supply of skilled workers. 23 Immigrants in York Region speak a variety of languages and represent more than 200 different ethnic groups. 24 There is great potential for the region to gain from the strengths of newcomers to Canada. Generally, immigrants to Canada are between the ages of 25 and 44 and, thus, of an age where they could participate in the labour force and contribute to the economy. 25 Furthermore, it is common for immigrants to be well educated and highly skilled. According to the Toronto Region Immigrant Employment Council (TRIEC), nearly three-quarters (72%) of prime working age immigrants in Ontario have a degree from an international university, whereas 25% of the same age group from Ontario s total population are as educated. 26 It is projected that immigration will account for 74% of all population growth in Ontario by Yet, even with such a robust influx of new employees and entrepreneurs, labour market experts still say there will be a skills shortage in many areas including finance, health care, social services, the public sector, and skilled trades. Labour experts predict that the shortages will be exacerbated in the near future, especially with the declining birth rate and increased number of baby boomers retiring in the next decade. 28 Many SMEs struggle particularly with regard to properly evaluating foreign credentials, and thus may experience the impact of future labour shortages more heavily. 22 Regional Municipality of York. Just the Facts: About Your Community. Page 1. Accessed at Immigration+Fact+Sheet.pdf 23 Regional Municipality of York An Economic Profile of York Region: Population Growth and Labour Force. Accessed at 24 Regional Municipality of York Just the Facts About Your Community. Page 1. Accessed at Language+Fact+Sheet.pdf. 25 Regional Municipality of York. Just the Facts: About Your Community. Page 1. Accessed at Immigration+Fact+Sheet.pdf 26 Toronto Region Immigrant Employment Council Fact Sheet. Accessed at 27 York Region Workforce Planning Board Opening Doors: Improving Employment Outcomes for Newcomers in York Region. Page 1. Accessed at 28 Ibid. Page 10 SOCIAL ENTERPRISE FOR CANADA IMMIGRANT LABOUR MARKET INTEGRATION IN YORK REGION AND TORONTO:

13 Figure 3: 29 Immigration to Ontario, 1971 to ) The York Region Economy York Region has grown by roughly 108,000 people and 35,000 jobs since 2006, and a strong future annual employment growth of 2.1% is anticipated. 30 Employment demand has grown substantially in service sector industries in Canada over the past 25 years. Economic investment is moving towards advanced manufacturing, information and communication technologies, health and life sciences, building and land development, green technology, sustainable agriculture and alternative energy industries. 31 The following sectors are particularly important to the region s future employment growth: 32 manufacturing professional, scientific and technical services special trade contractors administrative support services health care hospitality Manufacturing is the only sector that has shown decline. While there may be a surplus of workers from skilled through relatively unskilled, there will likely be other occupations with demand, either in York Region or in close proximity within the Greater Toronto Area. 33 Labour mobility is high in every sense. York Region is well connected to the wider Greater Toronto Area labour market nearly 45% of its residents are employed 4.0) Context 29 Ontario Ministry of Finance Ontario Population Projections Update : Ontario and Its 49 Census Divisions. Accessed at 30 York South Simcoe Training and Adjustment Board Top Report Page 5. Accessed at top_report_2010.pdf 31 Regional Municipality of York Beyond the Boomers: A York Region Employer s Guide to the Labour Force Shortage. Page 17. Accessed at 32 Ibid. 33 York South Simcoe Training and Adjustment Board Top Report Page 5. Accessed at Identifying Needs and Opportunities for Small- and Medium-Sized Enterprises SOCIAL ENTERPRISE FOR CANADA Page 11

14 in other areas and a portion of its jobs are filled by people from outside the region. 34 However, by planning for the future and acting now, the number of people who live and work locally can be increased. Figure 4: 35 Employment in York Region since ) Context In York Region, the growth in part-time employment (from 17.5% in 1998 to 20.4% in 2006, or an increase by 2% between 2001 and 2006) represents a notable trend and is likely related to population growth, which has produced increased demand for a variety of service-producing industries in York Region. 36 Service-oriented jobs account for approximately three-quarters (74%) of total employment in the region the most prevalent sectors including retail and wholesale trade as well as personal and business services ) Future Changes in York Region s Economy In 2007, Human Resource and Skills Development Canada stated that roughly 65% of all new jobs created in the next five years are expected to require some form of post-secondary education or training. 38 The economy of York Region is shifting increasingly towards knowledge-based jobs. An increasing proportion of jobs that will exist moving forward will require a level of education or training beyond high school, be it an apprenticeship, diploma, degree, certificate, industry credential, or professional qualification. 39 York Region s economy will be hindered if new immigrants are not effectively integrated into the labour market if they are not able to use the full potential of their skills and credentials obtained abroad. If left unaddressed, this will lead to labour shortages in particular segments of the economy. Immigration will be crucial in replacing the retiring workforce and contributing to the local economy. The Conference Board of Canada estimates that the under-utilization of immigrant skills is costing the Canadian economy $3.42 billion to $4.97 billion annually Regional Municipality of York Beyond the Boomers: A York Region Employer s Guide to the Labour Force Shortage. Page 20. Accessed at 35 Invest in York Employment. Accessed at 36 Paul Anisef, Ranu Basu, Lucia Lo, Valerie Preston, Shuguang Wang Infrastructure in York Region: Analysis of Human Services. Page 59. Accessed at 37 Ibid. 38 Miner, Rick People Without Jobs, Jobs Without People: Ontario s Labour Market Future. Page 7. Accessed at 39 Ibid. 40 Naomi Alboim and Elizabeth McIsaac Making the Choices: Ottawa s Role in Immigrant Employment. IRPP Choices 13(3). Page 4. Page 12 SOCIAL ENTERPRISE FOR CANADA IMMIGRANT LABOUR MARKET INTEGRATION IN YORK REGION AND TORONTO:

15 5.0) HOW IMMIGRANTS ARE FARING IN THE LABOUR MARKET 5.1) Labour Market Outcomes of Immigrants Skilled immigrants to Canada often experience extra difficulty finding jobs on par with their skills and education. According to Statistics Canada, 70% of newcomers said they had problems in the job finding process lack of Canadian work experience, non-transferability of foreign credentials, and a lack of official language skills were the most frequently cited barriers to employment. 41 Although new immigrants are twice as likely as the Canadian-born to hold a university degree, they often fare significantly worse in the job market. On the whole, 88% of all Canadians are in the labour force, while the proportion for recent immigrants is less than 75% 42. It has been shown that the gap in wages between immigrants and the Canadian-born appears to be highest among university graduates. 43 Immigrants are significantly more unemployed than the Canadian-born. In October 2010, the unemployment rate for Canadian-born in the Toronto Census Metropolitan Area was 5.3%, compared to 10.7% for all immigrants. While new immigrants have had higher unemployment rates than Canadian-born in the past, the gap has widened since the recession beginning in Equally important is the fact that new immigrants are significantly more under-employed than the Canadian-born. For example, recent immigrants who came to Canada with a university degree had a median income of $24,636 in 2005, compared to the median income of $51,656 for people who were born in Canada and who have a university degree. 45 Immigrants who had been in Canada for more than five years came out in the middle with a median income of $36,451 for those with a university degree. 46 Moreover, in the Greater Toronto Area, approximately one-third of recent immigrants are in a lowincome situation this proportion is more than twice as large as that of Canadian-born individuals. 47 While two-thirds of recent immigrants had at least one university degree, nearly three in ten (27%) of them lived in households with an annual income below $30,000 and thus can be classified as low income ) How Immigrants are Faring 41 Canadian Labour and Business Centre. Labour Market Integration: Issues and Challenges for New Immigrants. Page 17. Accessed at 42 Miner, Rick People Without Jobs, Jobs Without People: Ontario s Labour Market Future. Page 12. Accessed at 43 Toronto Immigrant Employment Data Initiative TIEDI Analytical Report 8: Labour outcomes of university-educated immigrants. Accessed at 44 Toronto Immigrant Employment Data Initiative TIEDI Labour Force Update: Toronto CMA. Accessed at 45 Wellesley Institute Income inequality, increased housing insecurity, and growing health inequities. Page 2. Accessed at 46 Ibid. 47 Citizenship and Immigration Canada Recent Immigrants in Metropolitan Areas: Toronto. A Comparative Profile Based on the 2001 Census. Ottawa: Citizenship and Immigration Canada. Page xix. 48 Paul Anisef, Ranu Basu, Lucia Lo, Valerie Preston, Shuguang Wang Infrastructure in York Region: Analysis of Human Services. Page 69. Accessed at Identifying Needs and Opportunities for Small- and Medium-Sized Enterprises SOCIAL ENTERPRISE FOR CANADA Page 13

16 Table: 49 Unemployment and participation rates for Canadian-born and immigrants with a university degree by period of immigration and age, Toronto Census Metropolitan Area (March 2010) Canadian-born Immigrants Age All bracket Immigrants Unemployment rate Participation rate % 7.9% 5.5% 6.1% 11.1% % 5.9% 3.4% 4.8% 9.7% % 5.4% 3.8% 5.9% 13.0% % 83.8% 89.5% 85.3% 79.1% % 88.2% 90.6% 89.8% 84.2% % 83.5% 87.9% 85.6% 78.9% 5.0) How Immigrants are Faring 5.2) Immigrant Labour Market Outcomes are Declining According to Statistics Canada, immigrants who came to Canada during the 1980s started off with a 28.4% disadvantage in income compared to their Canadian-born counterparts, but within a few years their salaries became comparable. By contrast, immigrants who arrived in the 1990s started off with a 36.6% earnings disadvantage and after ten years, they were still behind by almost 10%, with this number increasing to almost 20% for those arriving a decade later. 51 In Canada s largest urban centres such as the Greater Toronto Area, immigrants on the whole face a large initial income disadvantage, and subsequent increases are not enough for them to achieve parity. 52 In these areas, the initial income gap between new immigrants and others is 37%. 53 After four years, this number is reduced to 22%, and only falls below the 10% threshold in the twelfth year. 54 Most new immigrants in York Region do not work in an occupation that matches their education or training. Between 2001 and 2006, 40% of new immigrants in the Skill 1 category (jobs that require university education) work in jobs that match their education. Between 1996 and 2000, this number for new immigrants was 53% and prior to 1990, this number was 60.4% Toronto Immigrant Employment Data Initiative What are the Labour Market Outcomes for University-Educated Immigrants? Accessed at 50 Participation rate is defined as the share of the adult population working or seeking work. 51 graham, Katherine Our Diverse Cities No. 4, Fall Page Statistics Canada (Andre Bernard). Immigrants in the hinterlands Accessed at 53 Ibid. 54 Ibid. 55 Toronto Immigrant Employment Data Initiative. Fact Sheet 10-04: Do immigrants and Canadian-born with university degrees living in York Region work in occupations that match their education? Accessed at Page 14 SOCIAL ENTERPRISE FOR CANADA IMMIGRANT LABOUR MARKET INTEGRATION IN YORK REGION AND TORONTO:

17 The unemployment rate was higher for recent immigrants than for the general population in York Region (7.5% vs. 5.4%) in While equal proportions of the general population and the recent immigrant population (34%) were employed in upper skill level occupations, at the bottom end of the skills spectrum (i.e. semi-skilled, manual workers, sales and service) there are larger proportions of recent immigrants (23.3%) than their counterparts in York Region (18.1%) engaged in lower skilled occupations. 57 In a recent survey conducted by researchers at York University, out of 540 recent immigrant respondents, the rate of unemployment (22%, n=118) was high. 58 Only roughly four in ten (38%, n=203) were in paid employment and 7% (n=38) were self- employed. 59 This information clearly illustrates that on average, the labour market outcomes of new immigrants are declining. In many cases, immigrants are settling for jobs that they are overqualified for, simply because they need to make ends meet. 6.0) CHALLENGES TO ADDRESS 6.1) Issues Encountered by IEPs Generally, newcomers to the Canadian labour market immigrant or otherwise must overcome certain challenges, such as a lack of work experience, a mismatch between knowledge gained in school and industry requirements, and a lack of information on employment opportunities. However, immigrants often face additional barriers, including: the non-recognition of foreign credentials; an even greater lack of information on labour market requirements and employment opportunities; and in some cases the inability to function fully in one of Canada s national languages. Discrimination may also be an issue, since immigrants are increasingly likely to be members of visible minorities. 60 Many recent immigrants are visible minorities with their credentials and work experience often not recognized, earning much less than the Canadian-born and established immigrants, and experiencing higher unemployment and poverty rates. 61 Many businesses, particularly small- and medium-sized, lack the ability to effectively measure skills and competencies of immigrants (to evaluate foreign credentials) and therefore may find it easier to hire the Canadian-trained instead. The economic outcomes of immigrants and their children will continue to be a major policy concern in Canada. Research conducted by Statistics Canada, as early as in the 1980s, has suggested that the traditional patterns of economic outcomes for recent immigrants have changed for the worse. The earnings gap during the first few years in Canada between immigrants and the Canadian-born has been increasing, in spite of the rising educational attainment of immigrants. Furthermore, low income among successive groups of new immigrants has been rising, both in absolute terms and relative to the Canadian-born ) Challenges to Address 56 Paul Anisef, Ranu Basu, Lucia Lo, Valerie Preston, Shuguang Wang Infrastructure in York Region: Analysis of Human Services. Page 31. Accessed at 57 Ibid. 58 Ibid. Page Ibid. Page Statistics Canada (Andre Bernard). Immigrants in the hinterlands Accessed at 61 Paul Anisef, Ranu Basu, Lucia Lo, Valerie Preston, Shuguang Wang Infrastructure in York Region: Analysis of Human Services. Page 11. Accessed at 62 Ibid. Page 75. Identifying Needs and Opportunities for Small- and Medium-Sized Enterprises SOCIAL ENTERPRISE FOR CANADA Page 15

18 6.2) Gaps in Service for IEPs in York Region Population growth and increasing diversity in suburbs have generated demands for additional infrastructure; however, the supply of infrastructure in suburbs has not kept up. 63 Low-income minorities often find themselves geographically isolated from both jobs and services in Canadian suburbs. 64 Effective integration of recent immigrants into the labour market is especially important for municipalities that have a large proportion of recent immigrants, such as York Region. A mismatch between numbers of new immigrants and immigrant employment rates can have a significant impact on communities in terms of economic growth, quality of life and costs of community social assistance. 65 This is not just a matter of newcomers finding jobs, but rather finding employment in their field of training, that is commensurate with their level of qualification. In the City of Toronto and Peel Region, there are numerous programs and services to help find appropriate employment for new immigrants; however, there are considerably fewer in York Region. This is likely due to the fact that York Region has traditionally been more of a secondary settlement area for newcomers, as opposed to a primary settlement area such as Toronto and Peel Region. While the majority of immigrants continue to make Canada s largest cities their first point of entry, there is evidence of a shift in immigrant settlement patterns towards nearby suburban communities and smaller municipalities. 66 Evidence shows that York Region is increasingly becoming a primary destination for new immigrants in Canada. This means that a new approach is needed, including greater awareness and support for newcomer economic issues. 6.0) Challenges to Address 6.3) Supports for Employers In particular, support for businesses to facilitate the hiring of skilled immigrants is lacking. Given York Region s increasing ethno-cultural diversity, understanding the socio-economic risks for newcomers is critical for service planning and delivery, particularly for those who face significant language, attitudinal, or professional barriers in fully participating in York Region s employment opportunities. 67 While there are some employment and settlement services for recent immigrants in York Region, there is consensus that more needs to be done to engage employers about the issue of immigrant labour market integration. Research suggests that there is great importance in developing strategies to enhance the economic and social integration of recent immigrants. 68 Only a small proportion of persons living in York Region is aware of and uses existing employment services. 69 Many SMEs lack awareness about the potential benefits of hiring IEPs. Whether traditional employment services are optimally effective in helping new immigrants integrate into the labour market must be questioned are the services helpful, considering the barriers faced by new immigrants? What else could be done in the region to ensure that new immigrants effectively integrate into the economy? 63 Ibid. Page Ibid. Page Regional Municipality of York Community Snapshots: Recent Immigrants Living in York Region. Page 4. Accessed at 66 Federation of Canadian Municipalities. Quality of Life in Canadian Communities: Immigration & Diversity in Canadian Cities & Communities. Page 5. Accessed at 67 Paul Anisef, Ranu Basu, Lucia Lo, Valerie Preston, Shuguang Wang Infrastructure in York Region: Analysis of Human Services. Page 61. Accessed at 68 Ibid. Page Paul Anisef, Ranu Basu, Lucia Lo, Valerie Preston, Shuguang Wang Infrastructure in York Region: Analysis of Human Services. Page 76. Accessed at Page 16 SOCIAL ENTERPRISE FOR CANADA IMMIGRANT LABOUR MARKET INTEGRATION IN YORK REGION AND TORONTO:

19 7.0) RESEARCH RESULTS: INPUT FROM SMALL- AND MEDIUM- SIZED EMPLOYERS 7.1) Methodology Research consisted of focus groups, in-depth interviews and an online survey. In total, 30 people participated in three focus groups, 11 participated in in-depth interviews, and 103 participated in the online survey. A number of avenues were used to recruit participants. To obtain a random sample, a mass was sent to various organizations. This notified recipients of the initiative being undertaken and requested participation in a focus group, interview, or an online survey. Obtaining participation from local SMEs proved to be challenging. A number of methods were used to obtain participation in focus groups, in-depth interviews, and online surveys. In total, 1,635 s were sent to recruit participants for focus groups and in-depth interviews. This constituted the qualitative portion of the research. For the quantitative portion of the research (survey), 2,546 s were sent to obtain participation. Furthermore, a number of meetings were attended at the Newmarket Chamber of Commerce and Markham Board of Trade as well as other events held by the Regional Municipality of York and the City of Toronto. Businesses were randomly canvassed in York Region and Toronto to gather input. The general sentiment gathered from participants was a lack of awareness and concern about the issue. 7.2) Key Findings from Focus Groups Views from Employers Perceived risks It was generally agreed that the under-employment of new immigrants is often not a result of intentional discrimination, but rather a result of biases, preconceived notions, and uncertainty (with regard to fit, foreign credentials and validity of qualifications and experiences). The evaluation of education and skills/work experience gained abroad is a significant challenge and this is a key element contributing to the uncertainty in hiring new immigrants. o There are questions surrounding employers ability to verify and assess IEPs prior work experiences. There appears to be a concern that new immigrants will stay in a position temporarily in order to gain Canadian work experience. There is often uncertainty with regard to whether new immigrants will fit well into the Canadian workplace culture. Awareness It was noted that many SMEs lack knowledge about cultural differences and are largely unaware of the benefits that IEPs can offer their business. Employers largely do not have a good understanding about immigrant settlement issues. For instance, an individual may have gaps in his/her resume due to making the transition from their home country to Canada. 7.0) Research Results Recruitment and hiring practices It was mentioned that most SMEs predominantly hire based on networks and word of mouth, and therefore new immigrants are often not considered for many jobs, as they are often not part of these networks. The issue was raised of whether interview techniques are cross-culturally adaptive, in order to be fair and unbiased towards people of different cultural backgrounds. Issues regarding foreign credential recognition Identifying Needs and Opportunities for Small- and Medium-Sized Enterprises SOCIAL ENTERPRISE FOR CANADA Page 17

20 SMEs were cited as being heavily reliant on credentials. A number of participants mentioned that many of those hiring in SMEs may not fully appreciate the distinction between credentials and competencies. Also, it is important to differentiate between two types of credentials credentials in regulated professions and credentials in unregulated professions. o Credentials in unregulated professions are largely discounted in many cases, as they may not be seen as up to Canadian standards. In regulated professions, once IEPs have their credentials recognized and translated to Canadian standards, there are minimal barriers to gaining appropriate employment. However, informational barriers exist that may prevent immigrants from utilizing services that help with foreign credential recognition. It was stated that many IEPs believe that, because they have qualified for immigration to Canada, they will be able to easily find a job upon settlement. Attention was drawn to a recent research report by the Toronto Immigrant Employment Data Initiative (TIEDI) indicating that employers are not recognizing education from other countries, even if these credentials have been assessed by a recognized foreign credential evaluation service. Disconnect between policy and labour market needs It was mentioned that there is a disconnect between immigration policy and actual labour market needs. For example, when newcomers apply to come to Canada, there is often the assumption that if they qualify for immigration, they will be able to find a job commensurate with their skills easily and will not face significant barriers in the labour market. 7.0) Research Results Tools and resources for employers SMEs often lack the resources to sift through and evaluate large numbers of applications. Smaller organizations often do not have significant human resources departments and often lack the resources to appropriately evaluate, and consequently hire IEPs. Participants noted that there are many services and resources to help immigrants integrate into the workforce (though it is not necessarily easy to navigate these services) but there are few resources to help employers facilitate the hiring of new immigrants. SMEs need to be more aware about tools that are available, such as resources that help improve cultural understanding in the workplace or free/low-cost human resources departments that businesses can utilize to assist them with hiring, training and development. Skills International is a good example of an organization that helps with the hiring of IEPs. This organization connects immigrant professionals with prospective employers and works with a company that verifies the authenticity of information in individuals CVs. It was recommended that Social Enterprise for Canada conduct a pilot project giving assistance to an organization to assist them in finding and mentoring IEPs and building from success. Some key options to help with the hiring of IEPs in SMEs were mentioned: o Mentorship programs in which executives and high level employees mentor new hires o Internships o English lessons provided in the workplace for free o Services to improve cross-cultural understanding in the workplace and marketplace o Volunteering in order to gain experience and build networks Page 18 SOCIAL ENTERPRISE FOR CANADA IMMIGRANT LABOUR MARKET INTEGRATION IN YORK REGION AND TORONTO: