Rate of immigrants overqualified for jobs falls to 20-year low

StatCan report credits better labour market, systemic reform

- NICHOLAS KEUNG

The rate of immigrants hired in jobs they are overqualified for has dropped to the lowest rate in 20 years, says a new Statistics Canada study.

Using census data, researchers examined the educational achievements of immigrants and the educational requirements for their occupations. Overeducation or education-occupation mismatch is defined as when someone with at least a bachelor's degree is employed in a position requiring no more than a high-school education.

The 2021 census found only 26.7 per cent of recent immigrants were over-educated for their jobs, down from 31.1 per cent in 2016. Those in jobs fitting their qualifications went up to 44.4 per cent from just 40 per cent over the same five-year period.

“Selecting immigrants with high levels of education increases their chances of economic success,” said Statistics Canada in the report released on Wednesday. “Immigrants with a bachelor’s degree or higher are more adaptable to changes in the labour market and have steeper growth in employment earnings than those with a trades or high school education.”

But in reality, many immigrants with a bachelor’s degree or higher have occupations that underutilize their skills, which harms their employment income, productivity and well-being, it said.