Immigrants took the brunt of recession-year turn toward self-employment

Interesting study by StatsCan on the effects of the 2008 recession and increase in self-employment:

During the recent recession in Canada, rates of self-employment increased by 3.9 per cent, while paid employment in both the private and public sectors shrank by 4.1 per cent and 1.6 per cent, respectively.

“Economic downturns do not impact all groups of workers equally. It is newcomers, particularly those recently arrived, who are more likely to lose their paid employment compared to Canadian-born workers,” says the 48-page study.

“These workers are often left to compete for low-paying, part-time and temporary types of precarious jobs to survive . . . Some workers are pushed into self-employment as a means to replace lost income from paid employment and due to the failure of government social safety nets.”

Toronto immigrants also fared worse than their Canadian counterparts in self-employment, with median income at $7,270 a year — $560 less than non-immigrants. They were also more likely to work in trade and transportation industries, while the business and professional services sectors are the most common for self-employed Canadians.

The newcomer group had a median before-tax total income including paid jobs of $17,220, compared with $25,180 for non-newcomers, though immigrant men made almost $1,000 per annum more than newcomer women.

Immigrants took the brunt of recession-year turn toward self-employment | Toronto Star.