Maple News reports that recent immigrants to Canada have been disproportionately affected by job losses resulting from the COVID-19 pandemic. Although the economic crisis in early 2020 hit the entire Canadian labor force, the impact on newcomers—particularly those who arrived within the last 10 years—was significantly higher.
Between March and April 2020, as the pandemic triggered widespread shutdowns, Canada shed approximately 3 million jobs. While the labor market began to recover from May to July, regaining about 1.7 million of those jobs, data from Statistics Canada’s Labour Force Survey reveals that recent immigrants were less likely to benefit from that rebound.
In April 2020, the rate at which recent immigrants transitioned into unemployment peaked at 17.3%, compared to 13.5% for Canadian-born workers and long-term immigrants. Recent immigrant women were hardest hit, with nearly 20% losing their jobs between March and April, compared to 13% of Canadian-born women. Encouragingly, this gender-based gap narrowed by June and had nearly vanished by July.
Several structural factors contributed to these disparities. Recent immigrants are often overrepresented in lower-wage sectors such as food services, hospitality, and temporary employment—fields that suffered the most during the early lockdowns. Additionally, newcomers commonly face difficulties in transferring credentials and work experience to the Canadian job market, making it harder to secure stable, well-paying employment.
Before the pandemic, about 31% of recent immigrants had job tenures of less than a year, more than double the rate for Canadian-born employees, which stood at 15%. In February 2020, 22% of recent immigrants held low-wage positions, compared to 12% of native-born workers. Since such roles were among the first to be cut during the pandemic, immigrants were more likely to face unemployment.
As Canada’s economy began to recover, job growth among recent immigrants lagged. During May, June, and July 2020, recent immigrants had lower rates of re-employment than the Canadian-born population. The gender gap persisted in this phase as well: recent immigrant women trailed their Canadian-born counterparts by as much as 5% in May and June, with a modest improvement in July.
The data underscores the systemic barriers recent immigrants face, especially in times of economic crisis. It highlights the need for better support systems to integrate newcomers into resilient, long-term employment opportunities—policies that are essential for inclusive economic recovery and long-term national growth.
Maple News continues to monitor the evolving economic conditions and their impact on Canada’s immigrant communities.