Gaps in economic optimism and barriers among immigrants and Canadian-born individuals highlight the need for stronger labour market measures

Although Canada is making efforts to align immigration requirements with economic needs, many believe the impact has yet to be fully felt across communities. Both immigrant and Canadian-born individuals say more still needs to be done.

The Toronto Metropolitan University and the Environics Institute recently released The Survey on Employment and Skills in the wake of the 2025-2027 Immigration Levels Plan. The survey provides key insights into how both newcomers and Canadian-born individuals view the current state of the economy and how they expect it to impact their future.

According to the survey, support for immigration’s positive impact on Canada’s economy varies by education, age, income, union membership, immigrant status, language, and employment sector.

• University graduates, younger Canadians, higher-income individuals, union members, and first-generation or recent immigrants are more likely to view immigration positively.

• Those with less education, older adults, lower-income earners, non-union workers, French speakers, and private-sector employees show lower support.

More needs to be done to ease economic anxiety and concerns about job security

First-generation immigrants tend to express greater satisfaction with their work and outlook on the country, while recent arrivals report great concern about job security and economic vulnerability.

The survey’s findings include that:

• Non-immigrants are the most optimistic about job prospects, with 28% saying it is a good time to find work, compared to 24% of second-generation and 21% of first-generation respondents.

• Immigrants report notably higher levels of economic anxiety and job-related concern, with 56% of first-generation and 54% of second-generation immigrants worrying about themselves or a family member maintaining stable full-time employment, compared to 44% of non-immigrants. Concern is highest among recent immigrants, reaching 69%.

• The belief that there are fewer good jobs available is reported among roughly 36% of first-generation immigrants, and 24% of second-generation and non-immigrants.

Bringing down employment barriers faced by immigrants would greatly help critical sectors

Immigrants remain underemployed in Canada’s critical sectors: for example, in the healthcare sector, 70% of Internationally Educated Professionals (IEPs) who moved to Canada between 2009 and 2016 earned less than 50% of their Canadian-born counterparts. More than half of the immigrant professionals working in STEM sectors are unemployed and work in positions below their skill levels.

• Leveraging the full capabilities of IEPs who have higher education qualifications than the average Canadian would lead to lower unemployment rates and better standards of living.

• A standardized foreign credential recognition and accreditation program for private sector enterprises would help in smoother processes for recruitment, selection, and development

• Understanding the experiences of immigrants and non-immigrants in the current labour market would provide crucial insights into why newcomers face challenges.

An AI-ready Canada that can withstand tariffs would boost morale among the labour force

Among both immigrants and non-immigrants, there is a belief that automation, a lack of training, and external economic pressures could significantly impact job security. Meanwhile, more than eight in 10 Canadians are concerned about the overall state of the economy.

• Training and providing alternate employment would stave off concerns among 48% of first-generation, 45% of second-generation immigrants, and 39% of non-immigrants. Among recent immigrants who’ve been in Canada for less than 10 years, that number rises to 59%.

• Also, 59% of first-generation immigrants and 47% of both second-generation immigrants and non-immigrant respondents say they haven’t received enough training, which would help them benefit from new digital tools and contribute more to the economy.

• Building a stronger economy would also help Canadians withstand external economic impact, such as tariffs imposed by the US. Just under half of Canadians (47%) are concerned by such events: a number that rises to 57% among first-generation immigrants and 70% among recent immigrants. Second-generation immigrants are more aligned with the national average, while non-immigrant Canadians are the least concerned at 44%.

In conclusion, optimism about the labour market and the economy varies across generations and immigrant status, and addressing labour market challenges for all can improve employment outcomes and strengthen Canada’s long-term economic resilience.