Canada Wasting the Talents of Skilled Immigrants
2024/12/18 1 Comment
Of note:
Canada’s ambitious efforts to attract highly skilled immigrants are undermined by a widespread mismatch between immigrants’ qualifications and job opportunities, according to a new study from the C.D. Howe Institute. The report highlights key factors, such as language proficiency and education quality, as well as systemic barriers like the lack of recognition for foreign credentials and complex credential assessment processes, which hinder immigrants from fully contributing to Canada’s economy.
In “Harnessing Immigrant Talent: Reducing Overqualification and Strengthening the Immigration System,” Parisa Mahboubi and Tingting Zhang reveal that 26.7 percent of recent immigrants – those who arrived in Canada within the last five years – with a Bachelor’s degree or higher are employed in positions requiring only a high school diploma or less. This is three times higher than the rate for Canadian-born workers with similar education levels.
“The location of study is a key factor driving overqualification,” says Zhang. “For instance, immigrants educated in Southeast and Southern Asia are 2.7 times more likely to experience overqualification than those educated in Canada. These findings show how the perceived quality of foreign education impacts labour market outcomes, along with differences in language fluency and other contributing factors.”
The report also finds that systemic challenges, such as inefficient credential recognition and regulatory hurdles, further contribute to the issue. The complex mix of licensing and certification requirements for regulated professions creates significant barriers, particularly in healthcare, where many immigrants face difficulties despite the high demand for labour in this sector.
“The economic costs of immigrant overqualification is staggering,” says Mahboubi. “Overqualified immigrants experience the largest earnings gap, earning on average 46 percent less than non-immigrants with matching education and skills, even after controlling for other factors.”
The report outlines key recommendations to address these barriers:
- Revise the Express Entry system to align educational and language requirements with labour market demands.
- Expand access to workplace-focused language training programs.
- Streamline foreign credential recognition and establish mutual recognition agreements with source countries.
- Enhance employer awareness of immigrant credentials and provide hiring incentives.
“Highly educated immigrants in Canada are not being given opportunities to fully utilize their skills and qualifications,” says Mahboubi. “By tackling challenges and removing integration barriers, Canada can ensure that these talented individuals contribute more effectively to the economy while also enjoying fulfilling careers.”
About Andrew
Multicultural Meanderings 
Rejoinder to the C.D. Howe Institute Report on Immigrant Overqualification in Canada: A Critical Perspective on Foreign Qualifications
Canada’s immigration system has long been praised for its ability to attract skilled talent from across the globe, but recent reports, such as the one from the C.D. Howe Institute, highlight a concerning trend: the mismatch between immigrants’ qualifications and the job opportunities available to them. The study draws attention to issues like language proficiency, education quality, and systemic barriers, such as the lack of recognition for foreign credentials, which hinder immigrants from fully contributing to Canada’s economy. While these factors are undoubtedly important, it is equally essential to acknowledge that not all foreign qualifications should be automatically equated with Canadian qualifications.
The report rightly points out the overqualification issue—immigrants with bachelor’s degrees or higher being employed in jobs requiring only high school diplomas. However, while the mismatch is problematic, it is also important to consider the root causes behind this disparity. The reality is that education systems vary greatly from country to country, and not all foreign degrees are equivalent to those earned in Canada.
1. Differences in Education Standards:
Educational standards vary widely across countries, and it’s essential to recognize that a degree earned in one country may not be on par with Canadian standards. Degrees from certain countries may not have the same level of rigor or depth as those from Canadian institutions. For example, a Bachelor’s degree from some countries may only be a three-year program, as opposed to Canada’s four-year undergraduate degree. This discrepancy in duration and depth can affect how qualifications are perceived and evaluated.
2. Quality and Structure of Education:
The quality of universities also varies significantly. Not all institutions provide the same level of education, and many foreign universities may not offer the same academic resources, research opportunities, or faculty expertise that top Canadian universities provide. Furthermore, in some countries, undergraduate programs are less rigorous, with fewer requirements for research or major papers. This lack of academic depth can impact the ability of graduates to perform at the same level as Canadian graduates from well-regarded institutions.
3. Grading and Classification Differences:
Grading systems differ between countries, and the importance of grades cannot be overlooked. For instance, in some countries, a “third-class” degree—representing a grade of 33-50%—is considered a pass. However, in Canada and many other countries, this would be deemed a failure or, at best, a D-grade. This distinction is crucial, as someone with a third-class degree from abroad may not possess the same level of competency as a first-class graduate from Canada.
4. Lack of Research Focus:
Many undergraduate programs in countries like India, for instance, do not emphasize research, which is a cornerstone of higher education in Canada. The absence of major research projects, thesis papers, and in-depth study may result in graduates lacking the academic foundation expected of Canadian graduates.
5. The Evolution of Education Quality:
In previous decades, students in countries like India would apply to the best institutions—such as MIT in the U.S.—only if they had first-class degrees. Today, however, the trend has reversed, with many second- and third-class graduates seeking opportunities abroad, potentially diluting the perceived quality of foreign qualifications.
A More Thoughtful Approach to Credential Recognition:
It would be misguided to assume that all foreign qualifications are equivalent to Canadian degrees, especially when the structural and qualitative differences between education systems are so significant. Immigrant advocates calling for automatic recognition of overseas degrees as equivalent to Canadian qualifications are, in many cases, misleading the public. It’s not a matter of bias or discrimination, but rather a reflection of the complexities of global education systems.
To address the mismatch, it is essential to introduce a more nuanced approach to foreign credential recognition. Instead of blanket equivalency, a system should be established where immigrants undergo credential assessments, with the option to take bridging or supplementary courses to meet Canadian standards. This would not only ensure that qualifications align more closely with local expectations, but it would also provide immigrants with the tools they need to integrate successfully into the workforce.
In conclusion, while Canada’s immigration system should continue to strive for inclusivity and fairness, it is crucial that the recognition of foreign qualifications be approached with caution. Rather than advocating for an automatic equivalence, the focus should be on establishing clear, transparent processes that allow immigrants to enhance their credentials as needed. This approach would better reflect the realities of the global education system while ensuring that immigrants can contribute to Canada’s economy effectively and meaningfully.