Canada failing to capitalize on immigrant skills and expertise: study
A failure to align newcomers’ qualifications with job opportunities is undermining Canada’s efforts to attract highly skilled immigrants, according to a new study from the C.D. Howe Institute.
The report highlights key factors—such as language proficiency and education quality, as well as systemic barriers like the lack of recognition for foreign credentials and complex credential assessment processes—that prevent immigrants from fully contributing to Canada’s economy.
It found that 26.7 per cent of recent immigrants with a Bachelor’s degree or higher are employed in positions requiring a high school diploma or less—three times higher than the rate for Canadian-born workers with similar education levels.
“The economic costs of immigrant overqualification is staggering,” said co-author Parisa Mahboubi. “Overqualified immigrants experience the largest earnings gap, earning on average 46 per cent less than non-immigrants with matching education and skills.”
The report recommends revising Canada’s express entry system, expanding access to workplace-focused language training programs and streamlining foreign credential recognition.
Last spring, the federal government announced plans to create a permanent, rural immigration program to assist small communities experiencing labour shortages. Ottawa changed course a few months later, slashing the number of permanent residents who will be allowed into Canada in the coming years.
The target number of new permanent residents will drop to 365,000 by 2027, down from the Liberal government’s initial target of 500,000.Canada’s net population is expected to decline by 0.2 per cent as a result of these policy changes.
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