ARCHIVED – The Labour Market Progression of the LSIC Immigrants

A Perspective from the Second Wave of the Longitudinal Survey of Immigrants to Canada (LSIC)-Two Years after Landing

Introduction

Labour market participation is a key aspect of the settlement and integration process for newcomers in Canada. Results from the first wave of the LSIC showed that during the first six months most of the LSIC immigrants had tried to enter the labour market, and 4 out of 10 had found work[Note 1]. As time goes by, have these newcomers progressed in the labour market? The second wave of LSIC can offer insights on the labour market experience of the new immigrants two years after arrival[Note 2].

Highlights of the 2nd wave are as follows:

  • Employment increased as time went on among all immigration categories. Two years after landing, the employment rate[Note 3] for all LSIC immigrants was 58%, substantially higher than the 6-month employment rate of 44%.
  • The participation rate[Note 4] in the labour market for the LSIC immigrants increased from 70% six months after landing to 81% two years after arrival.
  • Although there were quite a few signs of progress in the labour market, many of the immigrants who had looked for jobs encountered barriers.
  • Skilled worker principal applicants had the highest employment rate at the end of the first two-year period while refugees made the most progress from 21% at 6 months to 44% at two years after landing.
  • The immigrants in prime working age groups (25-44 years) and those in the Prairies had relatively stronger labour market outcomes.
  • Immigrants from North America, Oceania and the Philippines made greatest gains in the labour market.
  • Compared with the situations during the first six months in Canada, more immigrants worked in full-time jobs and more found employment in intended occupations and higher-skilled jobs two years after arrival. The overall level of job satisfaction also increased.

Definitions of labour force statistics in the paper

Labour force:  in this paper, the labour force consists of the LSIC immigrants aged 15 and over who had been employed OR unemployed (that is, those who did not work but had been actively looking for work) since landing (Wave 1) or last interview (Wave 2). This definition of labour force here is not directly comparable to the LFS definition, as the reference periods are not comparable (the LFS uses a four-week search period).

Not in the labour force:  the LSIC immigrants who had not been employed or looked for a job since landing (Wave 1) or last interview (Wave 2).

Participation rate: the number of the LSIC immigrants in the labour force over the total number of the LSIC immigrants aged 15 and over (i.e. the overall LSIC population).

Employment rate: the number of currently employed LSIC immigrants over the total number of the LSIC immigrants aged 15 and over (i.e. the overall LSIC population).

Unemployment rate:  the number of the LSIC immigrants who are currently unemployed over the total number of the LSIC immigrants in the labour force.

Notes

1 See Publication “Overview of the Employment Situation of New Immigrants” (1st Wave Employment Paper) for an in-depth look at employment outcomes of the immigrants at 6 months after landing.

2 If not specified, the estimates presented in this paper are based on the 9,322 immigrants who landed in Canada from abroad between October 2000 and September 2001, and who participated in the wave one and wave two interviews of the LSIC, which represent about 160,800 immigrants from the LSIC target population.

3 For definition of “employment rate” for the LSIC immigrants, see definition box at the bottom of the page.

4 For definition of “participation rate” for the LSIC immigrants, see definition box at the bottom of the page.

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