2010 allies learning exchange: naomi alboim - immigrants and the economic recovery

Immigrants and the economic Immigrants and the economic recovery: What are the policy recovery: What are the policy

implications? implications?

Naomi AlboimNaomi Alboim2010 ALLIES Learning Exchange 2010 ALLIES Learning Exchange

May 7, 2010May 7, 2010HalifaxHalifax

22

PurposePurpose

As the economy recovers from the most recent As the economy recovers from the most recent recession, and as data become available, we are recession, and as data become available, we are starting to see the impact of the recession on starting to see the impact of the recession on Canada’s immigrants.Canada’s immigrants.

This presentation:This presentation:– Draws conclusions about how immigrants fared during Draws conclusions about how immigrants fared during

the recessionthe recession– Raises public policy implicationsRaises public policy implications– Makes recommendations for consideration by public Makes recommendations for consideration by public

policy makerspolicy makers

33

Key findingsKey findings Immigrants as a group were hurt badly by the Immigrants as a group were hurt badly by the

recession, but the impact varies depending on recession, but the impact varies depending on sector, geographic location, length of time in sector, geographic location, length of time in Canada, gender and other factors.Canada, gender and other factors.– Hardest hit: recent immigrants; men; young; Hardest hit: recent immigrants; men; young;

manufacturingmanufacturing Though hurt by the recession, many are not Though hurt by the recession, many are not

eligible for the things that would help them to eligible for the things that would help them to recover recover (e.g., language training, employment (e.g., language training, employment insurance, income assistance).insurance, income assistance).

We need to unpack the data to design targeted We need to unpack the data to design targeted interventions that will enable immigrants to interventions that will enable immigrants to contribute to economic growth.contribute to economic growth.

44

Data sourcesData sources

Looked at Canada, Ontario and Greater Toronto Looked at Canada, Ontario and Greater Toronto Area to see if the picture changes.Area to see if the picture changes.

A lot of helpful data from Statistics Canada, in A lot of helpful data from Statistics Canada, in Metropolis presentations. Metropolis presentations.

Intergovernmental Relations Group (IGR) of Intergovernmental Relations Group (IGR) of Toronto Region Immigrant Employment Council Toronto Region Immigrant Employment Council (TRIEC) was instrumental in generating additional (TRIEC) was instrumental in generating additional data and insights for GTA. data and insights for GTA. – municipal welfare datamunicipal welfare data– focus groups with immigrant-serving agenciesfocus groups with immigrant-serving agencies– early warnings from the field and funded organizationsearly warnings from the field and funded organizations– iin-camera monthly meetings to identify gaps and n-camera monthly meetings to identify gaps and

recommendations for actionrecommendations for action

55

Recession hypothesisRecession hypothesis

One hypothesis going into the recession was that One hypothesis going into the recession was that it would have a disproportionately negative it would have a disproportionately negative impact on immigrants in Canada.impact on immigrants in Canada.

Preliminary data indicate this hypothesis was Preliminary data indicate this hypothesis was correct, but with differential impact among correct, but with differential impact among immigrants.immigrants.– Main focus of this presentation.Main focus of this presentation.– Caveat: more data and study requiredCaveat: more data and study required

66

Immigration levelsImmigration levels

In the 1980s, Canadian immigration levels were In the 1980s, Canadian immigration levels were reduced in response to recession and subsequent reduced in response to recession and subsequent persistent high unemployment rates .persistent high unemployment rates .

During the recent recession, immigration levels During the recent recession, immigration levels were maintained to meet longer-term population were maintained to meet longer-term population and labour market objectivesand labour market objectives– This was also the approach adopted by New Zealand and This was also the approach adopted by New Zealand and

Sweden. Sweden. Australia and UK, however, reduced Australia and UK, however, reduced immigration levels in response to recession.immigration levels in response to recession.

Don’t know the longer term impact on cohort Don’t know the longer term impact on cohort arriving during recession.arriving during recession.

Need to know how immigrants have fared and Need to know how immigrants have fared and other impacts of the recession on immigrants to other impacts of the recession on immigrants to determine policy and program interventions.determine policy and program interventions.

A. How have immigrants fared in A. How have immigrants fared in Canada?Canada?

88

Job loss: length of residencyJob loss: length of residency Recent immigrantsRecent immigrants were hardest hit by were hardest hit by

recession job lossrecession job loss Between October 2008 and October 2009, recent Between October 2008 and October 2009, recent

immigrants aimmigrants accounted for 22% of all job losses, ccounted for 22% of all job losses, compared with just 3% of employment.compared with just 3% of employment.

Consistent with the experience of other OECD Consistent with the experience of other OECD countries. countries.

Established immigrantsEstablished immigrants fared relatively well. fared relatively well. Immigrants with 10 years or more residency Immigrants with 10 years or more residency

actually actually gainedgained jobs, compared with a 2.2% loss jobs, compared with a 2.2% loss in employment among Canadian-born workers. in employment among Canadian-born workers.

Immigrants here between Immigrants here between 5 and 10 years5 and 10 years were were comparable to Canadian born.comparable to Canadian born.

99

Job loss: length of residencyJob loss: length of residency

Job losses and employment by immigrant status-Canada October 2008 – October 2009

Seasonally unadjusted, 3 month moving average

Immigrant status % change in employment

Recent immigrants, 5 years or less -13.4 Immigrants, between 5 and 10 years -2.8 Canadian-born -2.2 Established immigrants, 10 years + +1.4

Source: Statistics Canada labour force survey. From HRSDC presentation at Metropolis conference 2010.

1010

Job loss: citiesJob loss: cities Recent immigrantsRecent immigrants accounted for essentially accounted for essentially allall net job losses in Canada’s three largest cities net job losses in Canada’s three largest cities (Montreal, Toronto, Vancouver) between October (Montreal, Toronto, Vancouver) between October 2008 and October 2009. 2008 and October 2009. – Their employment declined by 17%, compared to Their employment declined by 17%, compared to

virtually no decline for Canadian-born workers. virtually no decline for Canadian-born workers. Recession impacts were less severe for Recession impacts were less severe for

immigrants with immigrants with 5 to 10 years5 to 10 years residency. residency. Established immigrantsEstablished immigrants with more than 10 with more than 10

years years of Canadian residencyof Canadian residency experienced job experienced job gains, faring gains, faring betterbetter than Canadian-born workers. than Canadian-born workers.

1111

Job loss: citiesJob loss: cities

Job losses and employment in Montreal, Toronto and Vancouver by immigrant status,

October 2008 - October 2009 Seasonally unadjusted, 3-month moving average

Immigrant status % change in employment

Recent immigrants, 5 years or less -17.2 Immigrants, between 5 and 10 years -5.5 Canadian-born 0.0 Established immigrants, 10 years + +0.8 Source: Statistics Canada labour force survey. From HRSDC presentation at Metropolis conference 2010.

1212

Job lossJob lossImmigrants vs. other groupsImmigrants vs. other groups

Nation-wide and in the 3 largest cities, recent Nation-wide and in the 3 largest cities, recent immigrants are more affected by job loss than immigrants are more affected by job loss than other groups.other groups.– Due, in part, to status as new labour market entrants Due, in part, to status as new labour market entrants

with relatively low job tenure and Canadian work with relatively low job tenure and Canadian work experience.experience.

– Even though educated, did worse than workers with less Even though educated, did worse than workers with less than high school.than high school.

Youth were also significantly overrepresented Youth were also significantly overrepresented among net job losses, but to a lesser degree than among net job losses, but to a lesser degree than recent immigrants.recent immigrants.

1313

Job lossJob lossImmigrants vs. other groupsImmigrants vs. other groups

Job losses and employment among selected groups October 2008 - October 2009

Vulnerable groups % change in employment

Recent immigrants, 5 years or less -13.4 Workers with less than high school -11.1 Youth 15-24 -8.7 Aboriginal peoples -5.1 Workers with high school and/or some PSE -3.0 Older workers 55+ +3.7 Source: Statistics Canada labour force survey. From HRSDC presentation at Metropolis conference 2010.

1414

Employment by industryEmployment by industry

Immigrants are significantly represented in Immigrants are significantly represented in certain industries, particularly manufacturing.certain industries, particularly manufacturing.– The manufacturing sector was hardest hit by the The manufacturing sector was hardest hit by the

recession and job loss.recession and job loss.– Employment fell by 36% for recent immigrants, Employment fell by 36% for recent immigrants,

compared to 14% for established immigrants and only compared to 14% for established immigrants and only 8% for Canadian-born workers8% for Canadian-born workers..

1515

Incidence of employment by Incidence of employment by industryindustry

Incidence of employment by industry for selected groups (25-54), February 2010

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%

Agriculture

Forestry, fishing, mining, oil and gas

Utilities

Construction

Manufacturing

Trade

Transportation and warehousing

Finance, insurance, real estate and leasing

Professional, scientific and technical services

Business, building and other support services

Educational services

Health care and social assistance

Information, culture and recreation

Accommodation and food services

Other services

Public administration

Recent immigrants, 5 years or less Established immigrants, 5 years+ Canadian-born


1616

% change in employment by % change in employment by industryindustry

% change in employment by selected industries and immigrant status, seasonally unadjusted, October 2008-October 2009

-31

-8

-27

-36

-13

-5

-16

-9

30

-6

5

-3

-7

-1

-7 -6

2

-14

-9-8

-40

-35

-30

-25

-20

-15

-10

-5

0

5

10

Goods-producing

sector

Services-producing

sector

Construction Manufacturing Transportationand

warehousing

Accommodationand foodservices

Professional,scientific and

technicalservices

Recent immigrants, 5 years or less Established immigrants, 5 years + Born in Canada

Source: Statistics Canada labour force survey. From HRSDC presentation to Metropolis conference 2010.

1717

Gender impactGender impact Immigrant men – like Canadian-born men – were Immigrant men – like Canadian-born men – were

much more severely affected than immigrant much more severely affected than immigrant women by recession-related job loss.women by recession-related job loss.– They experienced a much steeper drop in employment They experienced a much steeper drop in employment

rate andrate and larger rise in unemployment rate than larger rise in unemployment rate than immigrant women. immigrant women.

– As with Canadian-born men, this is largely related to the As with Canadian-born men, this is largely related to the composition of employment (e.g., male employment in composition of employment (e.g., male employment in manufacturing and construction).manufacturing and construction).

The gender difference was most pronounced The gender difference was most pronounced among recent immigrants: among recent immigrants: – In this group, men’s employment rate declined by 8.5% In this group, men’s employment rate declined by 8.5%

points, vs. no decline for women.points, vs. no decline for women.

1818

Gender: changes in employment Gender: changes in employment ratesrates

Changes in employment rates by immigrant status and gender, October 2008 and October 2009, seasonally unadjusted

-9

-8

-7

-6

-5

-4

-3

-2

-1

0

1

Men Women Men Women Men Women

Recent immigrant, 5 years or less Established immigrant, 5 years+ Canadian-born

Per

cen

tag

e p

oin

ts


1919

Age: job loss and employmentAge: job loss and employment

Immigrants in the youngest category - age 15 -24 Immigrants in the youngest category - age 15 -24 – are the worst off.– are the worst off.

Within the 25-54 group, immigrants – especially Within the 25-54 group, immigrants – especially recent immigrants – were noticeably more recent immigrants – were noticeably more affected by recession job loss than Canadian-affected by recession job loss than Canadian-born.born.

Older recent immigrants, like older Canadian-born Older recent immigrants, like older Canadian-born workers, experienced job workers, experienced job gainsgains between October between October 2008 and October 2009.2008 and October 2009.

2020

Age: changes in employment Age: changes in employment ratesrates

Changes in employment rates by immigrant status and age, October 2008-October 2009, seasonally unadjusted

-7

-6

-5

-4

-3

-2

-1

0

1

15-24 25-54 55 Years + 15-24 25-54 55 Years + 15-24 25-54 55 Years +

Recent immigrants (<=5yrs) Established immigrants (5 yrs+) Born in Canada

Per

cen

tag

e p

oin

ts

Source: Statistics Canada labour force survey. From HRSDC presentation to Metropolis conference 2010.

B. Regional differences?B. Regional differences?

2222

Regional differencesRegional differences

Preliminary findings show the recession has had a Preliminary findings show the recession has had a disproportionate impact on immigrants as a group disproportionate impact on immigrants as a group in Canada.in Canada.

What about regional differences?What about regional differences? Looked at Ontario and Greater Toronto Area to Looked at Ontario and Greater Toronto Area to

show how the picture can change.show how the picture can change.

2323

Ontario snapshotOntario snapshot

30% of Ontario’s labour force is immigrants30% of Ontario’s labour force is immigrants 55% of Canada’s immigrant labour force is in 55% of Canada’s immigrant labour force is in

Ontario.Ontario. 40% of Canada’s immigrant labour force is in the 40% of Canada’s immigrant labour force is in the

Toronto Census Metropolitan Area.Toronto Census Metropolitan Area. Ontario has 39% of Canada’s population and 55% Ontario has 39% of Canada’s population and 55%

of the job loss.of the job loss.– Decline in manufacturing, construction and service Decline in manufacturing, construction and service

sectors key factor because that is where immigrants are sectors key factor because that is where immigrants are significantly represented in Ontario.significantly represented in Ontario.

2424

Regional differences in labour Regional differences in labour forceforce

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

CA NF PE NS NB QC ON MN SK AB BC

Perc

ent o

f Lab

our F

orce

Very Recent (< 5 yrs) Recent (5 - 10 yrs) Established (> 10 yrs)

Ontario - 30%

Canada - 21%

Source: Statistics Canada Labour Force Survey. From Ontario Ministry of Citizenship and Immigration presentation at Metropolis 2010.

Immigrants in the Labour Force

2525

Ontario: unemploymentOntario: unemployment

Once in Canada 10 years or more, the Once in Canada 10 years or more, the unemployment rate is not much different than unemployment rate is not much different than Canadian born.Canadian born.

Major concern: for very recent immigrants (less Major concern: for very recent immigrants (less than 5 years), the rate is still going up.than 5 years), the rate is still going up.

Also concerned about recent immigrants (5-10 Also concerned about recent immigrants (5-10 years).years).

2626

Ontario: unemploymentOntario: unemployment

16.1

12.6

8.7

8.1

0

2

4

6

8

10

12

14

16

18

20

Jun-

08

Jul-0

8

Aug-

08

Sep-

08

Oct

-08

Nov

-08

Dec

-08

Jan-

09

Feb-

09

Mar

-09

Apr-

09

May

-09

Jun-

09

Jul-0

9

Aug-

09

Sep-

09

Oct

-09

Nov

-09

Dec

-09

Jan-

10

Une

mpl

oym

ent R

ate

(%)

Ontario Unemployment Rate by Immigrant Period of Arrival (Jun 08 to Jan 10)

Very recent immigrants (< 5 yrs in Canada)

Recent immigrants (5 - 10 yrs in Canada)

Established immigrants (> 10 yrs in Canada)

Canadian-born

Source: Statistics Canada Labour Force Survey. From Ontario Ministry of Citizenship and Immigration presentation at Metropolis 2010.

2727

Ontario: education and Ontario: education and unemploymentunemployment

Unemployment rate for university graduates, Ontario

13.9

9.7

10.912.0

11.5

4.25.0 5.0

3.1 3.1

12.5

14.6 14.5

4.5

2.8 2.9

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

January 2009 February2009

March 2009 April 2009

Very recent immigrants, 5years or less

Recent immigrants, 5 to 10years

Established immigrants, 10+years

Born in Canada

Source: Toronto Immigrant Employment Initiative, York University.

2828

Greater Toronto Area: Greater Toronto Area: unemploymentunemployment

Unemployment rate Toronto CMA Labour Force Survey

July 08 Aug 09 Dec 09 Less than 5 years in Canada 12.6 16.5 14.8 5-10 years in Canada 9.9 17.7 12.5 10+ years in Canada 8.0 10.9 8.4 Born in Canada 6.2 9.1 7.6

MuchMuch of the recent employment growth is in part time work.

2929

GTA: need for servicesGTA: need for services Immigrant service agencies, community service Immigrant service agencies, community service

providers and municipal governments report providers and municipal governments report significant increase in recently unemployed significant increase in recently unemployed immigrants who:immigrants who:– Have been in country more than three yearsHave been in country more than three years– Entered manufacturing because unable to find jobs Entered manufacturing because unable to find jobs

suitable to their education and experiencesuitable to their education and experience– Did not upgrade language skills or pursue licensure upon Did not upgrade language skills or pursue licensure upon

arrivalarrival– Now unemployed and seeking federal services and Now unemployed and seeking federal services and

language training to make use of their skills and language training to make use of their skills and educationeducation

Source: Focus groups with immigrant service agencies through Intergovernmental Relations Group of the Toronto Region Immigrant Employment Council

C. What are the policy C. What are the policy implications?implications?

3131

1. Learn from past recessions1. Learn from past recessions In 1981, recent immigrant employment rates In 1981, recent immigrant employment rates

were close to Canadian-born. Two periods of were close to Canadian-born. Two periods of recession reduced immigrant employment and recession reduced immigrant employment and they never recovered.they never recovered.– 1980s1980s: Recent immigrants’ employment rate did not recover : Recent immigrants’ employment rate did not recover

before the 1990s recession hit. Their unemployment rate before the 1990s recession hit. Their unemployment rate nevernever returned to pre-recession level.returned to pre-recession level.

– 1990s1990s: Recent immigrants’ employment rate continued to : Recent immigrants’ employment rate continued to decline and their unemployment rate continued to rise, while decline and their unemployment rate continued to rise, while labour market outcomes for Canadian-born workers improved.labour market outcomes for Canadian-born workers improved.

In previous recessions recent immigrants were In previous recessions recent immigrants were more affected by job loss than Canadian-born more affected by job loss than Canadian-born workers, contributing to a widening of workers, contributing to a widening of employment rate and unemployment rate gaps.employment rate and unemployment rate gaps.

We need to ensure immigrants can recover this We need to ensure immigrants can recover this time and that the gap does not widen.time and that the gap does not widen.

3232

Past recessions: employment Past recessions: employment ratesrates

Employment Rates for Recent Immigrants and Canadian-born (15-64), 1981-2006

0

10

20

30

40

50

60

70

80

1981 1986 1991 1996 2001 2006

Em

plo

ymen

t ra

te (

%)

Canadian-born Recent Immigrants

Source: Census 1981 to 2006. From HRSDC presentation at Metropolis conference 2010.

3333

Past recessions: unemployment Past recessions: unemployment ratesrates

Unemployment Rates for Recent Immigrants and Canadian-born (15-64), 1981-2006

0

2

4

6

8

10

12

14

16

18

20

1981 1986 1991 1996 2001 2006

Pe

rce

nta

ge

(%

)

Canadian-born Recent Immigrants

Source: Census 1981-2006. From HRSDC presentation at Metropolis conference 2010.

3434

2. Unpack the data2. Unpack the data We require more study of the impact of the We require more study of the impact of the

recession on immigrants to understand the recession on immigrants to understand the interventions that are needed.interventions that are needed.

We need flexible national programs that are We need flexible national programs that are responsive to real differences.responsive to real differences.– This requires “unpacking the data” to see differences in This requires “unpacking the data” to see differences in

impact based on region, sector, length of time in impact based on region, sector, length of time in Canada, etc.Canada, etc.

We need dialogue with immigrants and the We need dialogue with immigrants and the agencies that serve them to put a human face to agencies that serve them to put a human face to the numbers, charts and graphs.the numbers, charts and graphs.

3535

3. Grow the labour force3. Grow the labour force

Current recovery prospects appear fairly positive Current recovery prospects appear fairly positive for Canada.for Canada.– A return to employment growth was seen in just a few A return to employment growth was seen in just a few

countries in late 2009, including Canada, Australia, Poland, countries in late 2009, including Canada, Australia, Poland, Israel and the United Kingdom. Israel and the United Kingdom.

As Canada’s economy improves, there will be a As Canada’s economy improves, there will be a huge need for labour.huge need for labour. – The immigrant population is a labour force already in Canada.The immigrant population is a labour force already in Canada.

With some investment, those harmed by the With some investment, those harmed by the recession can contribute to the economy as it recession can contribute to the economy as it grows.grows.– With language skills, etc. immigrants can contribute to the With language skills, etc. immigrants can contribute to the

growth.growth.– Without services, they will not fare well and we will not benefit Without services, they will not fare well and we will not benefit

from their potential.from their potential.

3636

……grow the labour forcegrow the labour force A relatively rapid bounce back to pre-recession A relatively rapid bounce back to pre-recession

employment levels and unemployment rates is employment levels and unemployment rates is anticipated in 3-4 years, in part because slowing anticipated in 3-4 years, in part because slowing labour force growth will support declining labour force growth will support declining unemployment rates.unemployment rates.

With slowing growth, Canada will likely return With slowing growth, Canada will likely return relatively quickly to tight labour markets. We relatively quickly to tight labour markets. We need the skills and abilities of every worker. need the skills and abilities of every worker.

We must maximize participation and productivity We must maximize participation and productivity in an environment where economic growth will in an environment where economic growth will face demographic constraints.face demographic constraints.

Education and skills of recent immigrants must be Education and skills of recent immigrants must be fully utilized. Canada can not afford to waste this fully utilized. Canada can not afford to waste this potential.potential.

3737

4. 4. Address barriers to labour Address barriers to labour market integrationmarket integration

Immigrants and employers most frequently cite Immigrants and employers most frequently cite the following barriers to labour market:the following barriers to labour market:– Lack of official language skillsLack of official language skills– Transferability of foreign credentialsTransferability of foreign credentials– Lack of Canadian work experienceLack of Canadian work experience

Employers cite language barriers more frequently Employers cite language barriers more frequently – number one issue for them.– number one issue for them.

3838

……barriersbarriers

Immigrant and employer views on obstacles to employment

Immigrant job seekers

Managers expecting to hire

% of immigrants reporting problems in finding employment/ % of managers expecting problems hiring foreign-trained workers

70% 72%

Most commonly cited problems

Lack of Canadian work experience 26% 46% Transferability of foreign credentials 24% 52% Lack of official language skills 22% 66%

Source: Presentation by HRSDC at Metropolis conference 2010. Immigrant job seeker data from Statistics Canada Longitudinal Survey of Immigrants to Canada, Catalogue no.89-611-XIE; Managers data from Canadian Labour and Business Centre’s Viewpoints 2002 Survey.

3939

Language makes a differenceLanguage makes a difference

Research suggests that, if official language Research suggests that, if official language abilities are controlled for, returns to education abilities are controlled for, returns to education are similar for immigrants and Canadian-born. are similar for immigrants and Canadian-born.

Source: Ana Ferrer, David A. Green, W. Craig Riddell, 2008, Literacy and the Source: Ana Ferrer, David A. Green, W. Craig Riddell, 2008, Literacy and the Labour Market: Cognitive Skills and Immigrant Earnings.Labour Market: Cognitive Skills and Immigrant Earnings.

Immigrants who went into manufacturing did not Immigrants who went into manufacturing did not require language upgrading so did not access require language upgrading so did not access services. Now many are citizens and no longer services. Now many are citizens and no longer eligible for federally funded language training.eligible for federally funded language training.

4040

Other factors make a differenceOther factors make a difference

Other interventions can help but are not widely Other interventions can help but are not widely available.available.– Canadian top-ups (internships, bridge training) reverse Canadian top-ups (internships, bridge training) reverse

discounting and lead to success.discounting and lead to success.– Social capital : social and professional networks (e.g. Social capital : social and professional networks (e.g.

mentoring) enhance labour market integration.mentoring) enhance labour market integration.

4141

5. Invest in programs & 5. Invest in programs & servicesservices

Time to invest in language training, upgrading Time to invest in language training, upgrading and other programmatic interventions to:and other programmatic interventions to:– prevent recession “scarring” and deskilling of prevent recession “scarring” and deskilling of

immigrantsimmigrants– ensure skilled labour force is ready for the recoveryensure skilled labour force is ready for the recovery

However serious barriers prevent immigrants However serious barriers prevent immigrants harmed by the recession from gaining access to harmed by the recession from gaining access to programs and services. programs and services.

4242

EI benefitsEI benefits

Because of changes in EI (more stringent labour Because of changes in EI (more stringent labour attachment requirements), it is more difficult for attachment requirements), it is more difficult for unemployed people and particularly immigrants unemployed people and particularly immigrants to qualify for benefits.to qualify for benefits.– Part time, seasonal, non-standard work = less labour Part time, seasonal, non-standard work = less labour

market attachment.market attachment. Women are less likely to qualify than men.Women are less likely to qualify than men.

– More part time work and maternity leaves.More part time work and maternity leaves. Yet access to most training dollars and programs Yet access to most training dollars and programs

dependent on EI eligibilitydependent on EI eligibility

4343

EI benefitsEI benefits

Source: Keith Banting, Queen’s University, 2010.

4444

EI in OntarioEI in Ontario The Employment Insurance legislation has been The Employment Insurance legislation has been

adjusted in a way that creates geographic adjusted in a way that creates geographic disparities.disparities.– Unemployed persons in Ontario are less likely to get Unemployed persons in Ontario are less likely to get

benefits than other parts of the country.benefits than other parts of the country.

4545

EI across CanadaEI across Canada


4646

Social assistance & unemploymentSocial assistance & unemployment In 2009, unemployment went up in Ontario but In 2009, unemployment went up in Ontario but

social assistance stayed down.social assistance stayed down.


4747

GTA social assistanceGTA social assistance Although numbers, rate of circulation and length of time in Although numbers, rate of circulation and length of time in

receipt of welfare are up modestly, GTA municipalities receipt of welfare are up modestly, GTA municipalities report no disproportionate increase in welfare rates for report no disproportionate increase in welfare rates for immigrants vs. non-immigrants. immigrants vs. non-immigrants.

In Toronto, immigrants here three years+ make up the In Toronto, immigrants here three years+ make up the same portion of new cases as Canadian born; immigrants same portion of new cases as Canadian born; immigrants less than 3 years in Canada comprise only half the less than 3 years in Canada comprise only half the proportion of new Canadian born cases.proportion of new Canadian born cases.

Reasons could include:Reasons could include:– StigmaStigma– Sponsorship agreementsSponsorship agreements– Lack of awarenessLack of awareness– Restrictive provisions regarding assetsRestrictive provisions regarding assets

Source: Greater Toronto Area municipalities.

4848

Lack of eligibility for existing Lack of eligibility for existing programsprograms

If unemployed but no significant labour force If unemployed but no significant labour force attachment, ineligible for EI or EI supported attachment, ineligible for EI or EI supported training (disproportionate impact on Ontario).training (disproportionate impact on Ontario).

If on EI, cannot continue to receive benefits while If on EI, cannot continue to receive benefits while in full time language training.in full time language training.

LMA training funds in Ontario not directed to LMA training funds in Ontario not directed to immigrants as target group: definition of immigrants as target group: definition of underemployment is quantitative, not qualitativeunderemployment is quantitative, not qualitative

If citizen (3 years+), ineligible for federal If citizen (3 years+), ineligible for federal programs and services, including LINC.programs and services, including LINC.

4949

……Lack of eligibilityLack of eligibility LINC provides no income support, so many take LINC provides no income support, so many take

survival jobs to support their families and have no survival jobs to support their families and have no time to take language training.time to take language training.

Welfare workers can approve training (including Welfare workers can approve training (including language) but applicants need to strip all assets language) but applicants need to strip all assets to be eligible for social assistance.to be eligible for social assistance.

Other training programs provide no income Other training programs provide no income support, child care or transportation allowances, support, child care or transportation allowances, so difficult to access.so difficult to access.

New loan program in Ontario for bridge training New loan program in Ontario for bridge training covers tuition and supplies only.covers tuition and supplies only.

D. RecommendationsD. Recommendations

5151

RecommendationsRecommendationsDataData

1.1. Conduct more in-depth analysis on the impact of Conduct more in-depth analysis on the impact of the recession on immigrants.the recession on immigrants.

2.2. Analyse data by province, city, sector, length of Analyse data by province, city, sector, length of time in Canada, gender, and education level in time in Canada, gender, and education level in order to target programs to needs. order to target programs to needs.

3.3. Do investigations on the ground with immigrant Do investigations on the ground with immigrant agencies to see real-life impact of recession on agencies to see real-life impact of recession on immigrants.immigrants.

5252

RecommendationsRecommendationsAccess to programs & servicesAccess to programs & services

4.4. Determine eligibility for federal settlement and Determine eligibility for federal settlement and language programs by need, not citizenship language programs by need, not citizenship status.status.

5.5. Expand the definition of “underemployment” for Expand the definition of “underemployment” for program eligibility to include the mismatch program eligibility to include the mismatch between qualifications and employment.between qualifications and employment.

6.6. Expand bridge training programs, internship and Expand bridge training programs, internship and mentoring programs with employer supports.mentoring programs with employer supports.

5353

RecommendationsRecommendationsIncome and supportsIncome and supports

7.7. Provide income support/training allowances to Provide income support/training allowances to immigrants for language training, bridge immigrants for language training, bridge training, and other training opportunities. training, and other training opportunities.

8.8. Provide child care and transportation Provide child care and transportation support/allowances to immigrants participating support/allowances to immigrants participating in language training, bridge training, and other in language training, bridge training, and other training opportunities.training opportunities.

9.9. Continue EI and social assistance benefits while Continue EI and social assistance benefits while immigrants are participating in language immigrants are participating in language training, bridge training, and other training training, bridge training, and other training opportunities.opportunities.

10.10. Expand loan program for immigrants to access Expand loan program for immigrants to access training.training.

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CONCLUSIONCONCLUSION

We need to focus on strategic investments in We need to focus on strategic investments in people.people.

Investing in skilled immigrants’ human capital, Investing in skilled immigrants’ human capital, social capital, and access to services now will social capital, and access to services now will prevent long term scarring and yield positive prevent long term scarring and yield positive results for the recovery and beyond.results for the recovery and beyond.