Nearly four in ten recent Canadian immigrants with university degrees are working in jobs that do not require their level of education, according to a new Statistics Canada report analyzed by the Toronto Star. The data highlights persistent challenges in credential recognition and labor market integration for newcomers.
The study found that 38% of immigrants who arrived between 2016-2021 with bachelor’s degrees or higher were overqualified for their positions, compared to just 28% of Canadian-born workers with similar education levels. The problem appears most acute in certain sectors like transportation, food services, and retail.
‘These numbers confirm what we’ve been seeing anecdotally for years,’ said one labor economist familiar with the report who requested anonymity as they weren’t authorized to speak publicly. ‘Canada’s immigration system selects highly educated applicants but doesn’t always connect them with commensurate employment.’
Officials at Immigration, Refugees and Citizenship Canada acknowledge the issue but point to recent initiatives like the Foreign Credential Recognition Program, which has allocated $115 million since 2020 to help immigrants get their qualifications recognized. ‘We’re making progress, but this is a complex challenge that involves provinces, regulatory bodies and employers,’ said a department spokesperson.
Analysts suggest the findings may fuel debates about Canada’s immigration targets, with some arguing the system should place greater emphasis on occupational demand rather than educational attainment. Others warn that failing to utilize immigrants’ skills could have long-term economic consequences, including reduced productivity and lower wage growth.