Immigration is essential to maintaining growth in Canada’s labour force. Beyond their immediate contribution, immigrants add to the Canadian economy through their children, says a new report released Tuesday by TD Economics.

Alexander Suhorucov

The report found:

  • Within the next 13 years, almost half of all Canadian children will be second-generation;
  • With the unemployment rate at a historic low, Canada’s job market is rife with opportunity, especially for highly-skilled applicants;
  •  Second-generation Canadians are particularly well placed to capitalize on the tight labour market. Like their parents, they tend to have post-secondary degrees and many graduate from Science, Engineering, Technology and Math (STEM) programs;
  • Second-generation Canadians share their parents’ entrepreneurial spirit and form new businesses at a higher rate than average;
  • While second-generation Canadians have historically experienced similar success in the labour market as children of non-immigrants, there are gaps. Second-generation Canadians that identify as visible minorities are under-represented in management positions.

“Canada is winning the race for talent on a global stage. Almost one in four Canadian residents were born in another country. Immigration is a key source of Canada’s population growth and helps to rejuvenate the labour force even as the population ages. Looking beyond the immediate value that immigrants bring to the country, their children (second-generation Canadians) offer an equally significant contribution with a growing influence.   Within the next 13 years, almost half of all Canadian children will be second-generation,” said the report.

“With an unemployment rate near a historical low, the Canadian labor market is rife with opportunity, especially for highly-skilled workers. Second-generation Canadians are well placed to reap the rewards thanks to their educational training and skillset. Putting the spotlight on the economic outcomes of children born to newcomers provides a glimpse at Canada’s future.”

The report said Canadians born to immigrant parents share unique perspectives that knit together local customs with cultures and traditions from abroad. Parents influence their children’s future in numerous ways, including the value they place on education. Similar to their parents, second-generation Canadians are more likely to hold university degrees and pursue higher education in STEM (Science Technology Engineering and Math) programs than Canadians raised by non-immigrants. The share of second-generation Canadians that graduated from college climbed faster than third- (or more) generation  Canadians, from 20 per cent in 2006 to 29 per cent in 2021. These academic gains help to bolster Canada’s talent pipeline, explained the TD report.

 Canada’s skills pipeline is ripe with talent originating from an increasingly diverse pool. The contribution of second-generation Canadians is one of the many benefits immigrations brings to the Canadian economy. While there’s much to celebrate, there are still gaps that prevent some second-generation workers from reaching their full potential. As we progress as a nation, it is important to put measures in place so that we ensure no one gets left behind,” said TD Economics.

“Canada’s tight labour market offers workers opportunities to move into better roles. We expect second-generation workers to be among the first to benefit from this environment.”

Mario Toneguzzi

(Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald, covering sports, crime, politics, health, faith, city and breaking news, and business. He works as well as a freelance writer for several national publications and as a consultant in communications and media relations/training. Mario was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list)

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