Maple News reports that new immigrants to Canada were among the hardest hit by job losses during the initial wave of the COVID-19 pandemic. Although restrictions and economic slowdown affected workers nationwide, the impact was significantly more severe for those who had arrived in the country within the past decade.
In March and April 2020, Canada experienced an unprecedented shock to its labour market, shedding nearly 3 million jobs. While recovery efforts from May to July brought back around 1.7 million positions, not all demographic groups shared equally in this rebound. According to Statistics Canada’s Labour Force Survey, recent immigrants faced a heightened risk of unemployment, with 17.3% losing their jobs in April—much higher than the 13.5% rate for Canadian-born workers and long-term immigrants.
Among the most vulnerable were recent immigrant women. Nearly 20% of them who were employed in March had lost their jobs by April, versus 13% of Canadian-born women. Although this gap narrowed to a 2-point difference in June and nearly vanished by July, the initial disparities highlight longstanding structural issues in the labour market.
One key factor behind these job losses is occupational segregation. Recent immigrants are more likely to be employed in low-wage or precarious positions, such as roles in accommodation, food services, or short-term contracts—sectors most affected by the pandemic shutdown. In February 2020, for instance, 31% of recent immigrants had held their current job for less than a year versus just 15% of Canadian-born workers. Additionally, 22% were employed in low-paying roles, compared to only 12% of Canadian-born individuals.
Workers in shorter-duration and lower-wage jobs tend to be laid off first during economic downturns. Because recent immigrants are overrepresented in these roles, they faced higher exposure to mass layoffs. This finding underscores a broader systemic challenge: the Canadian labour market still poses significant barriers to newcomers trying to secure stable, long-term employment.
During the partial recovery phase in the summer of 2020, recent immigrants remained at a disadvantage. In May, June, and July, their rates of transitioning back into employment lagged behind those of Canadian-born workers, especially among women. While some improvement was seen over time, recent immigrant women continued to face a recovery gap of up to five percentage points in the months following the initial economic hit.
Despite these difficulties, immigrant workers demonstrated remarkable labor market participation prior to the pandemic. From February 2019 to early 2020, their transition-to-employment rate occasionally exceeded that of Canadian-born workers. This suggests a resilient and motivated workforce that, with better support and recognition of foreign credentials, could help drive Canada’s post-pandemic economic recovery.
The pandemic exposed existing cracks in the system and emphasized the need for more inclusive economic policies that enable new immigrants to access jobs that match their qualifications and experience. Ensuring equitable access to employment will not only support individual newcomers but also strengthen the Canadian economy as a whole.