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Hiring new immigrants can offer Canadian businesses a rich source of talent and diversity.

However, despite Canada's emphasis on immigration as a cornerstone of its economic strategy with immigration accounting for nearly 100% of our labour force growth, businesses often encounter several challenges when attempting to integrate newcomers into their workforce.

“Immigrants in mid-sized Canadian cities often face challenges in finding employment due to a combination of factors related to their qualifications, experience, and the local job market,” says Nora Whittington, Community Engagement Coordinator at Immigration Partnership. “These include difficulties with foreign credential recognition, a lack of Canadian work experience, limited professional networks, language barriers, and sometimes, even perceived or actual discrimination.”

One of the major challenges is the recognition of foreign credentials and professional experience. Many immigrants arrive in Canada with education and work experience from other countries that are not easily understood or accepted by Canadian regulatory bodies or employers.

This mismatch often leads to underemployment, where highly skilled newcomers are hired for roles well below their qualifications. Businesses may be hesitant to hire individuals if they are unsure whether the person's background aligns with Canadian standards, even if the candidate is capable and qualified.

While some professions in Canada are regulated and require local licensing (such as medicine or law), many others do not. Employers should become more familiar with international education systems and certifications or seek assistance from credential assessment services.

Creating internal systems or hiring HR personnel who understand international qualifications can also help business leaders and managers accurately evaluate candidates’ backgrounds and prevent the undervaluation of their skills.

As well, experts encourage businesses to adjust job postings to clarify what skills and competencies are actually necessary rather than requiring candidates to have prior ‘Canadian experience’, which has become a vague catch-all. They can also provide onboarding or mentorship programs that help immigrants acclimate to workplace norms, reducing any actual gaps in local knowledge.

“Business owners/managers can consider their job postings and that they are created in a way that attracts immigrants and using terms that can be understood, to ensure that they are known as an inclusive and welcoming employer (word of mouth is powerful) and to know that job postings can express a wish list and it can eliminate great talent because they may feel like they don’t have all the qualifications,” says Nora, adding there are many cultures that do not use resumes and cover letters and to be considerate of this difference. “Know that many immigrants are highly educated and to not eliminate them from the hiring process but rather look at their transferrable skills.”

Many job opportunities in Canada are filled through informal networks or referrals, putting immigrants at a disadvantage if they lack established professional connections.

To counter this, businesses should diversify their recruitment strategies by partnering with immigrant-serving organizations, attending job fairs targeted at newcomers, and posting openings on platforms that cater to internationally trained professionals.

“Employers should be engaged with organizations and services in the community who work closely with immigrant talent. There are several organizations in the region who prepare immigrants for employment in the Canadian workplace,” says Nora, noting the work Immigration Partnership does in Waterloo Region, describing the organization as a ‘bridge builder’. “Any topic that we believe will create success for employers and immigrant talent we will present so that the bridges can be built.”

While Canadian immigration policy aims to attract skilled talent from around the world, several structural and practical challenges still hinder businesses from effectively hiring and integrating newcomers. Addressing these issues requires collaboration between employers, government agencies, and community organizations, and some progress has been made. 

“While there can be challenges in integrating immigrants into the labor market, such as overqualification or language barriers, Canada has made efforts to address these issues and ensure that immigrants can fully utilize their skills and talents,” says Nora. 

Why immigration is important for Canada's talent pipeline

• Addressing Labor Shortages:

Immigration helps fill critical gaps in the Canadian labour market, particularly in sectors experiencing shortages of skilled workers. 

• Boosting Innovation and Economic Growth:

Immigrants bring diverse skills, perspectives, and experiences, which can foster innovation and drive economic growth. 

• Supporting Population Growth:

As Canada's population ages, immigration helps to maintain a healthy workforce and support economic development. 

• Enhancing Competitiveness:

Canada competes with other countries for skilled talent, and its immigration system helps it attract top talent from around the world. 

• Building a Diverse Workforce:

Immigration contributes to a more diverse and inclusive workforce, which can be beneficial for businesses and communities. 

• Filling Specific Needs:

Immigration policies are often targeted to address specific labor market needs, such as in healthcare or technology.

Some ways businesses can modify hiring practices 

Rethink the ‘Canadian experience’ requirement

Employers should focus on relevant international experience and transferable skills. They can also provide onboarding or mentorship programs that help immigrants acclimate to workplace norms, reducing any actual gaps in local knowledge.

Implement bias-reduction techniques in screening

Companies should consider using blind recruitment practices, where personal identifiers such as name, nationality, or even educational institutions are removed during the initial screening. Also, standardized interview questions and diverse hiring panels can help reduce individual bias and lead to more objective decision-making.

Promote inclusive workplace culture

For businesses to truly benefit from the skills of new immigrants, they must foster an inclusive and supportive work environment. This includes offering language support if needed, celebrating cultural diversity, and ensuring clear communication practices. Cross-cultural training for both management and staff can improve collaboration and team dynamics. Moreover, mentorship programs that pair newcomers with experienced employees can provide the guidance and networking opportunities that immigrants often lack upon arrival.