Michael Willcox, LMIC economist, participated in a panel hosted by World Education Services (WES) at the 5th Metropolis Identities Summit to discuss how the employment rate of immigrant youth is lower compared to Canadian-born youth, but the gap is closing.

1. Immigrant youth
Labour outcomes and impact of
the COVID-19 pandemic
2022.10.21 MICHAEL WILLCOX (LMIC)

2. 2
Immigrants are key for the growth of our labour market
and to solve labour shortages
Baby boomers
retiring
Low fertility
Immigrants
Labour
shortages
COVID

3. 3
Labour outcomes of immigrant youth
→How have immigrant youth (aged 15-24) performed in the labour
market since the onset of the pandemic?
*Excludes temporary workers and refugees
→Labour market indicators assessed:
• Labour force participation
• Employment rate
• Hours worked
• Wages
→Immigrant youth vs Canadian-born youth
• Recent immigrants (<10 years)
• Established immigrants (>10 years)

4. 4
Before the pandemic, there were less immigrant youth in the
labour force compared to Canadian-born youth
Source:LFS (January 2020)
In school
28.5%
Not in
school
26.8%
In school
40.6%
Not in
school
4.1%
In school
27.7%
Not in
school
33%
In school
33.6%
Not in
school
5.7%
In school
69.1%
In school
61.3%
Immigrant youth
686,000
100%
In the labour
force
55.3%
Not in the
labour force
44.7%
Canadian-born youth
3.7 million
100%
In the labour
force
60.8%
Not in the
labour force
39.2%
Not in
school
26.8%
In school
40.6%
Not in
school
33%
In school
33.6%

5. 5
The employment rate of immigrant youth is lower compared to
Canadian-born youth, but this gap is closing
Potential causes
Higher barriers to employment created by discrimination or language skills, labour market entry delayed
by integration issues, emphasis on education rather than employment among immigrant households
Gap:
-5.5
ppts

6. 6
The employment rate of immigrant youth is lower compared to
Canadian-born youth, but this gap is closing
Potential cause :
Sectoral differences
Gap:
-6.5
ppts

7. 7
Before the pandemic, immigrant youth were overrepresented in the
Accommodation and Food Services sector before the pandemic
Underrepresented in
• Retail trade
• Health care and social
assistance
• Other (most importantly in
construction, information and culture
and recreation)
Overrepresented in
• Accommodation and food
services
• Business
• Professional scientific and
technical services
Source:LFS (January 2020)

8. 8
The employment rate of immigrant youth is lower compared to
Canadian-born youth, but this gap is closing
Employment of immigrant youth recovered faster
But recovery accompanied by drop in school attendance
Gap:
-3.6
ppts

9. 9
Employment of recent immigrant youth is lower than established immigrant youth
But same school attendance rate
→ Possible causes: Discrimination, employment barriers, integration, different population structure
Among landed immigrant youth, the employment rate for
recent immigrants was lower but is starting to pick up

10. 10
Among landed immigrant youth, the employment rate for
recent immigrants was lower but is starting to pick up
Recent immigrant youth were less impacted by the pandemic and recovery was also faster for them
→ Possible causes: Sectoral composition of employment, decreased employment barriers because
of labour shortages

11. 11
Immigrant youth experience greater fluctuation and
changes to their hourly wages than Canadian born youth do
Immigrant youth wages were more impacted by the COVID-19 pandemic
→ Possible cause: Sectoral difference, employers passing on the costs of volatile
demand onto vulnerable workers

12. 12
Recent immigrant youth earn lower hourly wages than
established immigrant youth
Recent immigrant youth earn lower hourly wage rate
→ Possible cause: Employment barriers, lack of network
Increase in wages for both groups since start of the pandemic
→ Possible cause: Sectoral changes, labour shortages

13. 13
Key Takeaways and
Next Steps
• Immigrant youth are a growing
share of the youth labour force
• Employment and participation
gaps are closing
• School attendance dropping
• Recent immigrants driving
employment growth
• Understanding why
• What is contributing to these
gaps?

14. 14
Questions?
Michael Willcox
michael.willcox@lmic-cimt.ca
Economist
CONTACT

15. 15
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