Author: Joyce Pang
This is the last blog of our three-part series on RBC Economics’ recently published report “Untapped Potential: Canada needs to close its immigrant wage gap”. In the first blog, we talked about how networking can help newcomers succeed in the labour market. In the previous blog, we discussed the “untapped potential” of immigrants and what it means for Canada.
The earnings gap isn’t just a problem for newcomers, but also Canada’s economy and growth. By not utilizing its more educated and experienced immigrant workforce, the country could be losing $50 billion of GDP per year, according to RBC’s study above. This number represents the overall costs of immigrants who are not able to work in their chosen field, and those who are working in their chosen field but are not reaching wage parity. We see the opportunity to reframe the findings into an opportunity for both the private and public sector to create solutions that work for newcomers. What actions has the government taken?
Canada has actively taken steps to fill its labour gaps with skilled and educated immigrant workers through introducing the Express Entry program and expanding its pre- and post settlement services. While we’re not sure if these efforts have narrowed the wage gap, they have indeed narrowed the employment gap between immigrants and Canadian-born.
Here are more things that can be done moving forward:
- Improve tracking of immigrant’s journey through the labour market to have a deeper understanding of why immigrant wage gap continues to worsen
- Support Canadian employers to better assess foreign work and education experience, as well as other important credentials
- Consider increasing and expanding resources that help immigrants transition into the Canadian labour force upon arrival
Over the coming months, the team at Arrive will continue to explore and share stories of how to empower newcomers with meaningful career opportunities. Arrive, powered by RBC Ventures Inc, is a subsidiary of the Royal Bank of Canada: we’d like to thank the team at RBC Economics for their detailed work around exploring the untapped potential of newcomers – read the full report here.
What can you do?
As a newcomer, you can increase your chances of succeeding in the labor market through networking and building meaningful connections.
Source: Report titled Untapped Potential: Canada Needs to Close Its Immigrant Wage Gap by RBC Economics, Sep 2019
Arrive is powered by RBC Ventures Inc, a subsidiary of Royal Bank of Canada. In collaboration with RBC, Arrive is dedicated to helping newcomers achieve their life, career, and financial goals in Canada. An important part of establishing your financial life in Canada is finding the right partner to invest in your financial success. RBC is the largest bank in Canada* and here to be your partner in all of your financial needs. RBC supports Arrive, and with a 150-year commitment to newcomer success in Canada, RBC goes the extra mile in support and funding to ensure that the Arrive newcomer platform is FREE to all. Working with RBC, Arrive can help you get your financial life in Canada started – right now. Learn about your banking options in Canada and be prepared. Click here to book an appointment with an advisor.
* Based on market capitalization
This article offers general information only and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or its affiliates.