Canada’s Number One LMI Challenge: Effective Integration of

Immigrants into the Workforce

Sharon Qiao

Centre for the Study of Living Standards

The Fifth Annual National Labour Market Information Forum

Winnipeg, Manitoba

February 12-14, 2006.

Labour Market Challenges in Canada

The aging workforce The shift to high skilled jobs reflecting

technological changes The labour shortage arising from low

unemployment rates

Chart 1: Share of Old Workers (45-64 years old) in the Total Labour Force (15-64 years old) in Canada, 1976-2026

20.0

25.0

30.0

35.0

40.0

45.0

Source: Statistics Canada, Labour Force Survey and Population Estimates and Projections.Note: Data for projected labour force are calculated by multiplying projected population with the 2006 labour force participation rates.

Per cent

Actual shares (1976-2006) Projections (2007-2026)

Chart 2: Net Labour Force Growth in Canada, 1977-2026

-200

-100

0

100

200

300

400

500

Source: Statistics Canada, Labour Force Survey and Population Estimates and Projections.

Thousands

Actual data (1977-2006) Projections (2007-2026)

Chart 3: Trends in Labour Shortage in the Manufacturing Industry, Canada, 1992-2006

0

1

2

3

4

5

6

7

8

9

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Skilled labour shortage

Unskilled labour shortage

Source: Statistics Canada, Business Conditions Survey.Note: The percentage of labour shortage means the proportion of the survey respondents recorded labour shortage.

Per cent

Actions to Address Labour Market Challenges

Government: ◘ Encourage lifelong learning ◘ Bring skilled workers 1.Promoting internal labour mobility 2.Promoting immigration.

Chart 4: Incidence of Interprovincial Migrants in Total Population in Canada, 1972-2006

0.00

0.50

1.00

1.50

2.00

2.50

The overall incidence for all ages

The simulated incidence for all ages using 1972's population share

Per 100 person

Source: Statistics Canada, Population Estimates Program.

Chart 5a: The Number of Immigrants Destined for the Labour Force in Canada, 1976-2005

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

Thousands

Source: Citizenship and Immigrants Canada, Fact and Figures 2005.

Chart 5b: The Contribution of Immigrants to Net Labour Force Growth in Canada, 1976-2022

36.3 44.176.5

174.4

573.1

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

1976-1995 1996-2005 2006-2010 2011-2016 2017-2022

per cent

Source: Statistics Canada Labour Force Survey and Citizenship and Immigrants Canada, Fact and Figures 2005.

Actual contributions (1976-2005) Projected contributions (2006-2022)

Chart 6: Characteristics of New Immigrants Entering Canada, 1992, 1997, 2000 and 2004

16.9

28.8 29.629.0

43.3

70.0

40.7

48.7

77.0

44.751.0

79.9

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

Share of immigrants withuniversity degrees

Share of immigrants in the"skilled worker" class

Share of immigrants whoseintended occupations were

information technology,engineering and other

professions

1992 1997 2000 2004

Per cent

Source: Citizenship and Immigration Canada.

Chart 7: Unemployment rate for Canadia-born and Recent Immigrants, 1981 vs. 2001

7.9

17.4

7.15.7

7.4

29.7

12.7

9.2

0

5

10

15

20

25

30

35

Canadian-born Entered country during thecensus year

Entered country within 5years of census

Entered country within 6-10 years of census

1981

2001

Per cent

Source: Lochhead, Clarence (2003) "The Transition Penalty: Unemployment Among Recent Immigrants to Canada", Canadian Labour and Business Center.

Source: Picot, Garnett, Feng Hou and Simon Coulombe (2007) “Chronic Low Income and Low-income Dynamics Among Recent Immigrants” , Statistics Canada, No. 11F0019MIE-294.

Chart 8: Low Income Rates of Recent Immigrants and Canadian Born Comparison Groups, 1992-2004

Barriers to Integrating Immigrants into the Canadian Labour Market

Lack of official language skills Lack of recognition on foreign credentials Lack of Canadian experience Cultural differences related to job-seeking Lack of familiarity with the Canadian

labour market Lack of networks

What LMI can do to reduce these barriers?

Provide information useful to immigrants

Make immigrants aware of the existence of the information

Allow immigrants easy to access to the information

LMI for immigrants: how do we perform?

We have an abundance of LMI for immigrants

Many immigrants are not aware of the information

Many immigrants lack skills on how to use LMI

Best practices on LMI: lessons from international experiences

Conducting LMI marketing campaigns

Embedding LMI in the education system

Building bridge mechanisms

1. Conducting LMI marketing campaigns– make the targeted users aware of LMI

Many immigrants are not aware of LMI.

◘ The United Kingdom: In order to attract users, the University for Industry /learndirect conducts regular and systematic marketing campaigns to promote its LMI service. The campaign makes heavy use of radio and television advertisements.

◘ European Commission: named 2006 “the European Year of Workers Mobility”, and conducted marketing campaigns to raise the awareness of the existence of LMI related to mobility.

2. Embedding LMI in the education system– Allow the targeted users easy to access LMI

Many immigrants return to school to improve their language skills or to upgrade their knowledge.

◘ The United Kingdom:

1. The1997 Education Act requires that all schools provide a minimum program of career education.

2. 90% of schools have a careers library.

3. Higher Education Institutions (HEIs) have Careers Service.

3. Building bridge mechanisms– allow the targeted users easy to access LMI

The fact that immigrants lack language and job searching skills makes it difficult for them to use LMI efficiently.

◘ United States—Language bridge mechanisms CareerOneStop: provides language translation tools to help people

whose first language is not English obtain LMI easily– Bridge Mechanisms for non-English speakers.

◘ Germany– Personal bridge mechanisms Intensive using career counsellors in public employment agencies 1. the work counsellor (Arbeitsberater)

2. the placement officer (Arbeitsvermittler)

How to use LMI to effectively integrate immigrants into Canadian labour market

◘ Conduct marketing campaigns for LMI through TV, newspaper, radio, Internet and other media, or organize festivals to enhance immigrants’ awareness of LMI products and services.

◘ Build effective bridge mechanisms for immigrants to access LMI by using language tools and personal counsellors well versed in the transition difficulties facing immigrants.

◘ Bring more work-related information to schools, universities and colleges, and deliver LMI to immigrants through career libraries or teachers, professor, and other staff on campus.

The EndThank you!

Sharon QiaoThe Center for the Study of Living Standards

111 Sparks Street, Suite 500Ottawa, Ontario K1P 5B5

613-233-8891, Fax 613-233-8250Email: sharon.qiao@csls.ca