Employment outcomes of postsecondary educated immigrants, 2006 Census Li Xue and Li Xu September 2010 Research and Evaluation
The views and opinions expressed in this document are those of the author(s) and do not necessarily reflect those of Citizenship and Immigration Canada or the Government of Canada. Acknowledgement The authors wish to acknowledge and thank Eden Crossman, Research and Evaluation Branch for her significant contribution to the final report. Ci4-91/2012E-PDF 978-1-100-21236-4 Ref. No.: RR20120702
Table of contents Executive summary... ii Introduction... 1 Section 1: Educational characteristics and labour force statistics... 3 Section 2: Occupational outcomes and education... 16 Skill level of occupation and highest level of educational attainment... 16 Skill level of occupation and field of study... 19 Skill level of occupation and location of study... 22 Occupational outcomes by country of highest educational attainment for selected major fields of study... 25 Conclusion... 38 i
Executive summary This paper takes advantage of the first available information on location of the highest education in the 2006 Census. This study is the second part of a three part project using the 2006 Census micro data to examine interplaying associations between labour market outcomes and educational characteristics among postsecondary educated immigrants (PSE) immigrants. It s mainly descriptive. The first part of this project drew a detailed educational portrait of PSE immigrants. In this second part, we are exploring occupational skill level outcomes in relation to highest level of educational attainment, field of study, and location of study (including a focus on selected major fields of study). The goal is to explore, using descriptive statistics, employment and occupational outcomes by educational characteristics, the main focus being on the immediately observable transferability of foreign degrees by field of study and country of highest post secondary degrees that is, transferability, or a match, refers to shares of PSE immigrants working in skilled occupations (National Occupational Classification 2006 levels O, A, and B), and occupations related to their education. In a later investigation, part three of this project, we will use multivariate analyses to net independent effects of country of study and field of study on occupational outcomes and earnings, controlling for socio-demographic factors (e.g., English and French language ability, city of residence, visible minority status, etc.). Drawing upon the newly available information captured in the 2006 Census, this study explores how differences in immigrant employment and occupational outcomes relate to the country of highest educational attainment and different fields of study. The paper examines the following research questions: Do country of education and field of study matter in the Canadian labour market? How do observed labour market statistics of immigrants vary by field of study and place of the highest degree? Are labour market outcomes different for those immigrant workers who have degrees from countries having educational systems similar to the Canadian one, compared to those who do not? Are immigrant groups with degrees in certain fields of study, or from certain countries, more likely to be employed and work in certain occupations than others? Are there any inter-country and interfield differences in occupational outcomes of immigrants? The study is comprised of two main sections first, an examination of educational characteristics and labour force statistics of PSE immigrants, and second, an exploration of occupational skill level outcomes in relation to highest level of educational attainment, field of study, and location of study (including a focus on selected major fields of study). What follows are selected highlights from the results of this analysis: Educational characteristics and labour force statistics Immigrant labour force statistics vary with level of educational attainment. As one example, immigrants holding a bachelor s or a master s degree had slightly higher unemployment rates than that of all PSE immigrants. Labour force statistics also differ by field of study. Immigrants who studied engineering, computer and information sciences and support services, and engineering technologies/technicians, outperformed other immigrants in terms of higher-than-average participation and employment rates, or lower-than-average unemployment rates. In contrast, immigrants in the fields of education and liberal arts and sciences, and general studies and humanities faced more challenges finding employment. PSE immigrants also showed varied labour market outcomes by country of study. Those who obtained their highest degree in Canada had better performance in 2006 in terms of a higher employment rate and a lower unemployment rate than many other main countries of study, close to the corresponding rates among their Canadian-born counterparts. ii
Immigrants who obtained their highest degree in the Philippines, the United States, the United Kingdom, Hong Kong, or Poland exhibited similar labour market outcomes as those studying in Canada, with relatively higher employment rates and lower unemployment rates. In contrast, immigrants who received their highest education in Pakistan, Iran and China did particularly poorly, with relatively higher unemployment rates. Overall, immigrants who had been in Canada for a longer time outperformed in the labour market their counterparts who had been in Canada for a shorter period. The labour market advantage of a Canadian diploma or degree over foreign degrees seems more apparent for established immigrants than for recent and very recent immigrants. Skill level of occupation and highest level of educational attainment While an occupation-education mismatch is found to exist for all immigrant cohorts (e.g., the term match being used here to refer to shares of PSE immigrants working in skilled occupations and occupations related to their education), those immigrants who had been in Canada for a longer time outperformed their counterparts who had been in Canada for a shorter period, for almost all major fields of study. Very recent and recent immigrants showed weaker occupation-education match rates in comparison with established immigrants. The occupation-education match rate increased among PSE immigrants with higher levels of educational attainment. Skill level of occupation and field of study Occupational skill level distribution patterns of PSE immigrants varied substantially across fields of study. Of all immigrant postsecondary graduates who had worked during 2005 and 2006, those who held degrees in biological and biomedical sciences had the highest proportion working in skilled occupations (National Occupational Classification 2006 levels O, A and B) (77.8%), followed by those in physical sciences (76.5%), engineering (75.5%), psychology (74%), construction trades (73.1%) and computer and information sciences and support services (72.1%). Regardless of which major field they had studied in, immigrants with a Canadian postsecondary degree had better chances to work in occupations commensurate with their educational level and field of study. This advantage is more apparent in the fields of study of business and management, marketing and related support services, social sciences and education. Skill level of occupation and location of study Significant disparities in employment and occupational outcomes across countries of study and fields of study imply that transferability of degrees or credentials obtained in other countries varies. Overall, immigrants with a Canadian postsecondary degree had better chances to find employment, and to work in occupations commensurate with their educational level and field of study. This advantage is more apparent in the fields of business and management, marketing and related support services, social sciences and education. Relatively more positive prospects are also found for immigrants with degrees from the U.S., the U.K. and France, and those in particular fields of study such as engineering and computer and information sciences and support services, even from non-traditional source countries such as China and India. Some groups facing more barriers to skilled occupations (NOC O, A and B) include immigrants with Filipino degrees, and immigrants from China, India and Pakistan who are trained in fields other than engineering and computer sciences, such as social sciences. iii
PSE immigrants with Filipino degrees have a very low unemployment rate of 4.2%, comparable to the rate for immigrants with a Canadian postsecondary degree and much better than those of their Chinese and Indian counterparts. However, during 2005 and 2006, they also had the lowest proportion working in skilled occupations among all main countries of study under analysis (42.1%). Immigrants with their highest education from South Korea had a unique occupational distribution. Nearly one-third of them worked in management jobs (31.9%), much higher than for any other location of study and more than three times higher than the immigrant average (11.4%). This is associated with the much higher self-employment rate among these immigrants. Occupational outcomes by country of highest educational attainment for selected major fields of study Recent and very recent immigrants who studied engineering, engineering technologies/technicians, and computer and information sciences and support services had better occupational outcomes compared to their counterparts in other fields of study, suggesting that particular fields of study imply better prospects in the Canadian labour market, even for immigrants educated in non-traditional source countries such as China and India. iv
Introduction For the first time in the Canadian census history, detailed location relating to where the highest postsecondary degree was obtained has been collected in the 2006 Census. 1 In combination with the existing information on the level of education and field of study, this newly available information provides important clues about the possible reasons why some immigrants may develop a stronger or weaker attachment to the Canadian labour market. Immigrant assimilation theory predicts that holding all other factors constant, integration into the Canadian labour market should be easier for recent immigrants holding a postsecondary degree completed in Canada compared to those who do not. Degrees similar to the Canadian ones, such as those obtained in the US, UK, and/or some European (OECD) countries, are predicted to have similar effects on labour market integration. Although the current immigrant selection system does not consider field of study, new policies such as Bill C-50 2 currently do favour certain occupations which are closely related to field of study when selecting skilled immigrants. Research indicates that postsecondary field of study is an important predictor of labour market outcomes for both immigrants and the Canadian-born population (e.g. McBride and Sweetman, 2004 3 ). Large inter-field differences in earnings are observed between immigrants who obtained their education in Canada and those who did not. However, little research focuses on field of study or the economic impacts of field of study on immigrants, not to mention how postsecondary field of study interplays with location of education in determining the labour market outcomes of immigrants. This area of research remains open. Drawing upon the newly available information captured in the 2006 Census, this study looks at statistical variations in country of the highest educational attainment and field of study among postsecondary educated (PSE) immigrants. The paper examines the following research question: What is the picture of postsecondary degree holders in terms of field of study and place of the highest degree among various immigrant groups? The study is comprised of two main sections first, a comparison of immigrant and Canadian-born demographic and educational profiles, and second, an examination of highest level of educational attainment, location and field of study of PSE immigrants. This study is the first part of a three part project using the 2006 Census micro data to examine interplaying associations between labour market outcomes and educational characteristics among PSE immigrants. It s mainly descriptive. The second part of this project will explore employment and occupational outcomes by educational characteristics, the main focus being on the transferability of foreign degrees by field of study and country of highest post secondary degrees. A third 1 Statistics Canada refers to this variable as Location of study. This variable indicates the province, territory (in Canada) or country (outside Canada) where the highest certificate, diploma or degree was obtained. It is only reported for individuals who had completed a certificate, diploma or degree above the secondary (high) school level. 2 In order to improve the immigration program s responsiveness to Canada s labour-market needs, on June 18, 2008, Parliament approved Bill C-50 which made changes to the Immigration and Refugee Protection Act removing the obligation to process all applications CIC receives, and authorizing the Minister of Immigration and Citizenship to issue instructions regarding which applications are eligible for processing, based on the Government of Canada s goals for immigration. The instructions outline a set of eligibility criteria that apply to all federal skilled worker applications received on or after February 27, 2008. Currently 29 occupations under high-demand areas such as health, skilled trades and resource extraction are on the eligibility list for processing. 3 McBride, S. & Sweetman, A. (2004). Postsecondary field of study and the Canadian labour market outcomes of immigrants and non-immigrants, Analytical Studies Branch Research Paper Series, Statistics Canada, Catalogue no. 11F0019MIE2004233. 1
investigation using multivariate analyses will net independent effects of country of study and field of study on occupational outcomes and earnings, controlling for other socio-demographic factors. Among the postsecondary educated population, this study focuses on working age immigrants, aged 25-64 years, classified by the following groups: very recent immigrants (who landed between 2001 and 2006); recent immigrants (who landed between 1996 and 2001); and established immigrants (who had been in Canada for more than 10 years). The highest level of postsecondary completed certificate, diploma and degree is grouped into five categories: trades certificate, college diploma, university certificate or diploma below bachelor level; bachelor s degree (including university certificate or diploma above bachelor level); 4 degree in medicine, dentistry, veterinary medicine or optometry; master s degree, and earned doctorate. For the first time with the 2006 Census, data on major field of study was coded with the Classification of Instructional Programs (CIP) Canada 2000. The groupings of the CIP are independent of the level at which study was undertaken. The CIP consists of 13 major categories or primary groupings, 12 of which are used for the Census. The 12 primary groupings are further subdivided into 41 two-digit series that represent the most general groupings of programs that are related in subject area. Based on a new question added to the Census on location of study, the place where the highest degree was obtained is broken down into two groups: 1) inside Canada, and 2) abroad, for selected main countries of origin including the US, the UK, China, India, the Philippines, Pakistan, etc. Our focus in the current paper is on PSE immigrants who were 25-64 years old at the time of the 2006 Census, and the analysis is limited to this group. For a demographic and educational comparison of this group of interest to the Canadian-born population, please refer to part one of this three part project, a report titled An Educational Portrait of Post-Secondary Educated Immigrants, 2006 Census. 4 University certificates or diplomas are commonly connected with professional associations in fields such as accounting, banking, insurance or public administration. If a bachelor's degree is a normal prerequisite for a university certificate or diploma course, as may occur with teaching certificates, then the latter is classified as a university certificate above the bachelor level. In the current report, we do not separate it from the bachelor s degree. 2
Section 1: Educational characteristics and labour force statistics Labour force statistics are collected for the population 15 years of age and over in the 2006 Census. The reference period for the 2006 Census was the week of Sunday, May 7 to Saturday, May 13, 2006. The Census definitions of employed, unemployed and not in the labour force are comparable to those used for the Labour Force Survey (LFS). Figure 1: Labour force statistics of PSE immigrants by highest educational attainment, 2006 100% 8.0% 90% 80% 5.6% 6.4% 5.0% 6.8% 4.9% 6.0% 7.0% 6.0% 70% 5.0% 60% 4.0% 50% 3.0% 40% 2.0% 30% 1.0% 20% Trades or College diploma Source: Census 2006 Bachelor's degree Degree in medicine, dentistry, veterinary medicine or optometry Master's degree Earned doctorate degree Participation rate Unemployment rate All PSE immigrants Employment rate Immigrant labour force statistics vary with the level of educational attainment (Figure 1). For all PSE immigrants aged 25 to 64, 82.8% participated in the labour force in 2006 and 77.9% were employed, resulting in an unemployment rate of 6%. Immigrants with a trade certificate or a college diploma or degree had comparable participation and employment rates to those of all PSE immigrants. The unemployment rate for immigrants with a trades or college diploma, at 5.6%, is lower than the immigrant average of 6%. In contrast, immigrants holding a bachelor s degree had a slightly higher unemployment rate at 6.4%. Immigrants with medical degrees did fairly well in obtaining a job in the Canadian labour market in 2006, recording an unemployment rate of 5%, one percentage point lower than that of the immigrant average. Master s degree holders had the highest unemployment rate among all groups. PhDs had the best outcomes in 2006 in terms of the highest participation and employment rates and the lowest unemployment rate among all PSE immigrants aged 25-64. Labour force statistics also differ by field of study (Figure 2). Among immigrants in the top 10 fields of study, those who studied engineering, computer and information sciences and support services, and engineering technologies/technicians had higher-than-average participation and employment 0.0% 3
rates, while immigrants in the fields of education and liberal arts and sciences, general studies and humanities had relatively lower participation and employment rates. Looking at unemployment rates, immigrants who studied in health and related clinical sciences, education, and engineering technologies/technicians outperformed other immigrants in terms of their lower-than-average unemployment rates (4.8%, 5.5% and 4.8%, respectively). Figure 2: Labour force statistics of PSE immigrants by field of study, 2006 100% 8.0% 90% 80% 6.1% 6.4% 4.8% 6.9% 5.5% 6.7% 6.7% 7.0% 7.0% 4.8% 7.0% 6.0% 70% 5.0% 60% 4.0% 50% 3.0% 40% 2.0% 30% 1.0% 20% Business, management, Health professions marketing and related and related support services clinical sciences Engineering Computer and information sciences and support services Education Physical sciences Liberal arts and sciences, general studies and humanities Social sciences Visual and performing arts Engineering technologies/ technicians 0.0% Source: Census 2006 Participation rate Unemployment rate Employment rate 4
Figure 3: Labour force statistics by country of study, 2006 100% 12.0% 10.0% 10.4% 90% 9.3% 7.4% 10.0% 80% 7.9% 8.5% 8.6% 6.6% 6.7% 8.4% 8.4% 8.0% 70% 60% 4.8% 4.2% 5.0% 3.7% 4.5% 4.0% 6.0% 4.0% 50% 2.0% 40% Canada India U.S. U.K. Russia France Ukraine Taiwan Other 0.0% China Philippines Pakistan Romania South Korea Iran Hong Kong Poland Source: Census 2006 Participation rate Unemployment rate Employment rate PSE immigrants also showed varied labour market outcomes by country of study (Figure 3). Those who obtained their highest degree in Canada had a better performance in 2006 in terms of a higher employment rate (81.7%) and a lower unemployment rate (4.8%) than many other countries of study. Further, these rates are close to the corresponding rates among their Canadian-born counterparts during 2006. The employment rate for the PSE working age Canadian-born population was 82.4% and the unemployment rate was 4.2%. Immigrants who obtained their highest degree in the Philippines, the United States, the United Kingdom, Hong Kong and Poland exhibited a similar pattern as those studying in Canada with relatively higher employment rates and lower unemployment rates. In contrast, immigrants who studied in Pakistan, South Korea and Taiwan were less likely to participate in the labour market and had lower employment rates. Immigrants who received their highest level of education in Pakistan and Iran did particularly poorly, with unemployment rates higher than 10%. The leading source countries China and India -- showed different outcomes: in 2006, immigrants with a Chinese degree had a participation rate of 76%, an employment rate of 69% and an unemployment rate of 9.3%, while those obtaining their degrees from India had a much higher participation rate at 85%, a higher employment rate at 76% and a lower unemployment rate at 7.4%. 5
Figure 4: Unemployment rate by country of study and immigration period, 2006 16% 14% Very recent Recent Established 12% 10% 8% 6% 4% 2% 0% Source: Census 2006 Figure 4 presents further variations in unemployment rates across different immigrant cohorts by country of highest educational attainment. Overall, immigrants who had been in Canada for a longer time outperformed their counterparts who had been in Canada for a shorter period, with relatively lower unemployment rates. Established immigrants who landed in Canada before 1996 had lower unemployment rates than their recent and very recent counterparts for all main countries of study. Very recent immigrants, in contrast, had much higher unemployment rates across all countries of study included in Figure 4, than did recent immigrants and established immigrants. The unemployment rates for very recent immigrants more than doubled the rates for established immigrants who received their highest degree in the same country, including Canada. Unemployment rates among very recent immigrants were particularly high for postsecondary degree holders who completed their degrees in China (12.6%), Pakistan (13.3%), Romania (12.2%), Russia (12%), South Korea (12.2%), Iran (14.5%) and Taiwan (15.4%). It is important to note that for the very recent arrivals, a Canadian degree does not necessarily lead to a lower unemployment rate, which was 10.7% for those very recent immigrants with a Canadian degree -- only 1 percentage point lower than the immigrant average. The advantage of a Canadian diploma or degree over foreign degrees, especially Asian degrees, seems more apparent for established immigrants relative to recent and very recent immigrants. 6
Figure 5: Unemployment rate by major field of study and immigration period, 2006 16% 14% 12% Very recent Recent Established 10% 8% 6% 4% 2% 0% Business and realted Source: Census 2006 Engineering Health professions Computer and information Education Social sciences Physical sciences Visual and performing arts Liberal arts and related Engineering technologies Looking at unemployment rates across major fields of study and immigration period (Figure 5), established immigrants stand out among all three immigrant cohorts with significantly lower unemployment rates across almost all major fields of study, with the exception in the fields of computer and information sciences and support services and engineering technologies/technicians. Very recent PSE immigrants had much more difficulty in the Canadian labour market than their predecessors. The gaps in unemployment rates between very recent and recent immigrants were large, at an average of 6 percentage points for all fields of study. Recent and very recent immigrants who studied engineering and engineering technologies/technicians had better outcomes compared to immigrants in other fields of study. Those who studied arts or humanities such as education, social sciences, visual and performing arts, and liberal arts and sciences, general studies and humanities faced more challenges than those in engineering or related fields. For established immigrants, those who studied computer and information sciences and support services had the highest unemployment rate across all major fields of study, while those with a degree in health professions and related clinical sciences were most likely to be employed. However, the situation for these two fields of study changed for recent and very recent immigrants, a phenomenon most likely associated with changing labour market demand during the past decade. The IT boom promoted employment opportunities for those immigrants in a computer related field. Regulatory requirements, along with compositional change, meant that recent immigrants who studied in health professions and related sciences, especially in a non-western country, had to face more entry obstacles into their professional jobs than did their predecessors, such as language barriers, recognition of foreign qualifications, and large differences in professional regulations between that in their source country and in Canada. 7
Figure 6: Unemployment rate by major fields of study and main countries of study, 2006 16% 14% China India Philippines U.S. Pakistan U.K. Canadian-born Canada 12% 10% 8% 6% 4% 2% 0% Business, management, marketing and related support services Source: Census 2006 Engineering Health professions and related clinical sciences Computer and information sciences and support services Education Social sciences Physical sciences Engineering technologies / technicians Figure 6 shows unemployment rates of PSE immigrants by field of study and country of study. Among immigrants in the same major field of study, outcomes differ significantly. Immigrants who obtained their highest degrees in Canada had relatively lower unemployment rates than the average for all immigrants. Among immigrants in the top major field of study business, management, marketing and related support services, those from Russia, China, South Korea, Romania and Pakistan had higher unemployment rates than others in this field. If we look at engineering, although immigrants who studied in this field had a slightly better outcome than those in other fields in terms of a lower unemployment rate, the results also differ by country of study. Again, immigrants who studied engineering in China, South Korea, and Pakistan had unemployment rates at around 8%, much higher than the rates for immigrants from other countries. For all major fields of study, immigrants who studied in Pakistan, China, and South Korea faced a tougher labour market in 2006. The following sections take a closer look at detailed labour force statistics for the main countries where immigrants obtained their highest degrees, namely Canada, China, India, the Philippines, the United States, Pakistan and the United Kingdom. 8
Canada Of the 1,244,885 working age immigrants who had attained their highest PSE degrees in Canada, 1,068,695, or 85.8%, participated in the labour market in 2006, and 1,016,975 or 81.7% were employed. As a result, the overall unemployment rate for this group of immigrants was 4.8%, close to the rate for Canadian- born postsecondary graduates (4.2%). Table 1: Labour force statistics by main fields of study for the working age PSE immigrants who obtained their highest degree in Canada, 2006 All w orking age PSE immigrants Employment rate Unemployment rate Participation rate Fields of study Business, management, marketing and related support services 277,565 81.4% 5.1% 85.8% Health professions and related clinical sciences 156,010 82.0% 3.8% 85.3% Computer and information sciences and support services 83,030 83.1% 6.3% 88.7% Engineering 81,755 85.7% 4.8% 90.0% Education 62,330 77.9% 3.6% 80.7% Engineering technologies/technicians 61,210 84.4% 4.6% 88.5% Mechanic and repair technologies/technicians 52,040 84.6% 3.7% 87.9% Social sciences 50,225 82.1% 5.0% 86.4% Personal and culinary services 45,655 75.9% 5.3% 80.2% Visual and performing arts 36,305 78.9% 6.3% 84.2% Other 338,760 81.2% 4.9% 85.4% Total 1,244,885 81.7% 4.8% 85.8% Source: Census 2006 Of the 277,565 immigrants who obtained their degrees in business, management, marketing and related support services in Canada, 85.8% participated in the labour force in 2006 and 81.4% found a job. As a result, the unemployment rate was 5.1%, one percentage point lower than the immigrant average for this major field of study. However, this rate was still higher than that of the Canadianborn average of 4%. Health professions and related clinical sciences was the second most popular major field of study among those immigrants with a Canadian degree. In 2006, 85.3% of those PSE immigrants in this group participated in the labour force, and 82% were employed. Their unemployment rate of 3.8% was much lower than that for immigrants in most other major fields of study, and close to that for their Canadian-born counterparts (3.1%). The 2006 Census enumerated 83,030 immigrants aged 25-64 who acquired their highest diploma or degree in computer and information sciences and support services in Canada, which made this field of study the third most popular field among immigrants with a Canadian degree. However, the advantage of a Canadian credential was not obvious for this field: the unemployment rate was one of the highest rates among all major fields of study for immigrants with Canadian credentials (6.3%). This rate was moderately lower than the immigrant average (6.9%) and higher than the Canadianborn average (5.1%). The results for engineering were somewhat different. Of the 81,755 immigrants who acquired a Canadian degree in engineering, 90% participated in the labour force and 85.7% were employed in 2006. The unemployment rate of this group was relatively low, at 4.8%, compared to the rates for many other major fields of study, and to the immigrant average for this field (6.4%). This indicates that a Canadian engineering credential may imply better employment prospects than for those with 9
foreign degrees. However, the gap between this rate and the rate for their Canadian-born counterparts (2.9%) also points to the barriers faced by Canadian-educated immigrant engineers in the Canadian labour market. In contrast, looking at another related field of engineering technologies and technicians reveals a somewhat smaller gap between Canadian-educated immigrants (4.6%) and the Canadian-born (4.0%). It is interesting to note that immigrants with degrees in this field had relatively better outcomes than those in other fields, no matter where they completed their degrees. The gap between the unemployment rate for the immigrant average (4.8%) and the rate for the Canadianeducated immigrants in this field was negligible (0.2%). China Immigrants with a Chinese postsecondary degree seem to face greater challenges in the Canadian labour market, compared to their counterparts with a Canadian degree. In 2006, 76.2% of those working age immigrants with a Chinese degree participated in the labour market, and 69.1% were working. Both participation and employment rates of this group were significantly lower than the rates of immigrants with Canadian degrees (85.8% and 81.7%) and the Canadian-born (86% and 82.4%). Furthermore, the unemployment rate for those who had a degree from China was nearly twice as high as the rate for those immigrants with a Canadian credential (9.3% vs. 4.8%), and more than double the rate for the Canadian-born population at 4.2%. Engineering was the most popular field of study among immigrants with a Chinese degree. In 2006, 39,320 immigrants had their highest degree or diploma in engineering from China, which accounted for nearly one third of all Chinese degree holders. However, this did not present promising job prospects, as their unemployment rate was 8.5%, significantly higher than the rate for their immigrant counterparts with a Canadian engineering degree (4.8%). The major field of business, management, marketing and related support services followed as the second most popular field of study among Chinese postsecondary degree holders. Of the 20,765 immigrants with a Chinese business degree, only 68.1% participated in the labour market and 60.4% were employed in 2006. The unemployment rate of this group was among the highest of all Chinese degree holders (11.2%). Immigrants with Chinese degrees in computer and information sciences and support services showed very similar labour market performance to that of immigrants in a related field of study engineering. The gap between the unemployment rates for Chinese computer sciences degree holders and their Canadian-born counterparts was 3.4 percentage points. Compared to their Canadian-educated immigrant counterparts, this gap remained at 2.2 percentage points. Immigrants who studied social sciences and English language and literature/letters in China encountered significant challenges finding employment, as unemployment rates of 13.8% and 11.8% were recorded, respectively. 10
Table 2: Labour force statistics by main fields of study for the working age PSE immigrants who obtained their highest degree in China, 2006 Fields of study All PSE immigrants Employment rate Unemployment rate Participation rate Engineering 39,320 74.6% 8.5% 81.6% Business, management, marketing and related support services 20,765 60.4% 11.2% 68.1% Computer and information sciences and support services 10,620 75.9% 8.5% 82.9% Health professions and related clinical sciences 10,185 66.6% 8.4% 72.8% Physical sciences 5,700 73.9% 7.7% 80.1% Social sciences 3,995 64.6% 13.3% 74.6% Education 3,845 61.9% 8.6% 67.8% English language and literature/letters 3,140 65.8% 11.8% 74.5% Aboriginal and foreign languages, literatures and linguistics 2,665 63.2% 8.4% 69.2% Visual and performing arts 2,620 65.8% 9.0% 72.3% Other 18,875 67.6% 9.5% 74.6% Total 121,730 69.1% 9.3% 76.2% Source: Census 2006 India Of the 137,667 immigrants who acquired their highest degrees in India, 84.7% participated in the labour market in 2006, and 78.5% were employed. Both of these rates were much higher than those for immigrants with Chinese degrees. The overall unemployment rate for Indian PSE degree holders was 7.4% in 2006, which was 2.6 percentage points higher than that for immigrants with Canadian degrees, but outperformed their Chinese counterparts by almost 2 percentage points. Immigrants who acquired their highest degrees in India in the top fields of study exhibited different labour market outcomes. Looking at unemployment rates, immigrants with an Indian degree in engineering were the least likely to be unemployed (5.5%), followed by those in computer and information sciences and support services (6.4%), multidisciplinary studies (6.6%) and physical sciences (6.9%). In contrast, immigrants who studied in education, biological and biomedical sciences, health professions and related clinical sciences, liberal arts and sciences, general studies and humanities, social sciences and business, management, marketing and related support services were more likely to be unemployed. The unemployment rates for immigrants with an engineering (5.5%) or computer science (6.4%) degree from India were very close to the rates for Canadian-educated immigrants in the same fields (4.8% and 6.3%, respectively). 11
Table 3: Labour force statistics by main fields of study for the working age PSE immigrants who obtained their highest degree in India, 2006 All PSE immigrants Employment rate Unemployment rate Participation rate Fields of study Business, management, marketing and related support services 26,270 81.1% 7.0% 87.2% Engineering 18,965 87.9% 5.5% 93.0% Liberal arts and sciences, general studies and humanities 16,835 74.7% 8.2% 81.3% Social sciences 9,320 77.1% 7.5% 83.4% Health professions and related clinical sciences 8,925 72.3% 8.3% 78.9% Education 7,200 65.6% 10.2% 73.1% Multidisciplinary/interdisciplinary studies 6,040 80.4% 6.6% 86.1% Computer and information sciences and support services 4,785 79.2% 6.4% 84.6% Physical sciences 4,615 82.3% 6.9% 88.4% Biological and biomedical sciences 3,600 75.4% 9.8% 83.5% Other 31,110 77.1% 7.8% 83.6% Total 137,665 78.5% 7.4% 84.7% Source: Census 2006 The Philippines According to the 2006 Census, an estimated 132,540 immigrants aged 25 to 64 acquired their highest postsecondary education in the Philippines. Of them, 85.7% participated in the labour market in 2006 and 82.1% were employed. The unemployment rate for these Filipino degree holders was 4.2%. These outcomes are comparable to the rates for immigrants with a Canadian postsecondary degree and much better than those of their Chinese and Indian educated counterparts. Immigrants with their highest degree from the Philippines in most of the leading fields of study exhibited very low unemployment rates (lower than 5%). Specifically, the lowest unemployment rates were in health professions and related clinical sciences, engineering, social sciences, engineering technologies/technicians, and agriculture related sciences. In contrast, immigrants with a Filipino degree in computer and information sciences and support services, mechanic and repair technologies/technicians, and architecture and related services showed relatively higher unemployment rates compared to their counterparts in other fields of study. 12
Table 4: Labour force statistics by main fields of study for the working age PSE immigrants who obtained their highest degree in the Philippines, 2006 All PSE immigrants Employment rate Unemployment rate Participation rate Fields of study Business, management, marketing and related support services 38,845 81.7% 4.6% 85.6% Health professions and related clinical sciences 27,425 81.5% 3.6% 84.6% Engineering 21,110 85.9% 3.5% 89.0% Education 9,700 76.3% 4.3% 79.8% Computer and information sciences and support services 3,755 82.2% 5.9% 87.4% Social sciences 3,320 84.9% 3.6% 88.0% Engineering technologies/technicians 3,070 86.8% 3.4% 89.7% Mechanic and repair technologies/technicians 2,300 83.7% 5.6% 88.7% Agriculture, agriculture operations and related sciences 2,245 83.1% 3.9% 86.2% Architecture and related services 1,900 81.1% 5.2% 85.5% Other 18,870 80.8% 4.9% 85.1% Total 132,540 82.1% 4.2% 85.7% Source: Census 2006 The United States The 2006 census enumerated 103,700 immigrants aged 25-64 with their highest educational attainment from the United States. Overall, these immigrants showed lower-than-average participation and employment rates and a slightly higher-than-average unemployment rate, compared to all working age PSE immigrants. Of the immigrants with a US degree in the top 10 major fields of study, most immigrants showed comparable employment outcomes to their counterparts with a Canadian degree. A few exceptions were noted in engineering and business, management, marketing and related support services. Immigrants with US degrees in these two fields had to face much higher unemployment rates (6.3% and 6.1% respectively) than their counterparts in other fields. Immigrants who obtained a social science degree in the US had superior outcomes in terms of a lower unemployment rate (3.3%). This was much lower than the rates for immigrants with social sciences degrees from Canada (5.0%) and even the Canadian-born in the same field (3.9%). 13
Table 5: Labour force statistics by main fields of study for the working age PSE immigrants who obtained their highest degree in the United States, 2006 All PSE immigrants Employment rate Unemployment rate Participation rate Fields of study Business, management, marketing and related support services 20,600 78.0% 6.1% 83.0% Health professions and related clinical sciences 10,605 75.7% 4.1% 78.9% Engineering 10,565 82.3% 6.3% 87.8% Education 9,355 73.4% 3.9% 76.3% Computer and information sciences and support services 5,550 81.0% 5.0% 85.2% Visual and performing arts 5,550 76.8% 4.3% 80.2% Social sciences 4,830 76.7% 3.3% 79.3% Psychology 2,880 74.8% 5.1% 78.8% Biological and biomedical sciences 2,765 77.9% 3.8% 81.0% Theology and religious studies 2,550 82.5% 3.0% 84.9% Other 28,450 75.0% 4.9% 78.9% Total 103,700 77.0% 5.0% 81.0% Source: Census 2006 Pakistan In 2006, an estimated 46,285 working age immigrants acquired their highest postsecondary degree in Pakistan. Of them, 70.9% participated in the labour market in 2006 and 63.8% were employed. The unemployment rate for these immigrants was 10%, the highest among the top 10 countries of study for immigrants. Immigrants who studied engineering had the highest participation and employment rates (88.6% and 81.7%, respectively) and the lowest unemployment rate among all the immigrants in all fields of study from Pakistan (7.9%). Table 6: Labour force statistics by main fields of study for the working age PSE immigrants who obtained their highest degree in Pakistan, 2006 All PSE immigrants Employment rate Unemployment rate Participation rate Fields of study Business, management, marketing and related support services 7,620 74.1% 8.7% 81.2% Engineering 6,815 81.7% 7.9% 88.6% Liberal arts and sciences, general studies and humanities 5,100 45.9% 11.4% 51.7% Social sciences 3,575 60.4% 12.4% 69.0% Health professions and related clinical sciences 3,560 57.7% 12.4% 65.9% Computer and information sciences and support services 2,320 73.9% 9.2% 81.7% Education 2,265 43.0% 13.7% 49.9% Multidisciplinary/interdisciplinary studies 1,585 62.8% 11.6% 70.7% Physical sciences 1,450 73.8% 9.7% 81.4% Biological and biomedical sciences 1,420 49.6% 10.2% 55.3% Other 10,575 59.4% 10.4% 66.3% Total 46,285 63.8% 10.0% 70.9% Source: Census 2006 14
The United Kingdom Employment outcomes for immigrants who completed their postsecondary degrees in the United Kingdom were much better than for immigrants with postsecondary degrees from other countries, including Canada. In 2006, of the estimated 119,390 immigrants with a UK degree, 80.1% participated in the labour force and 77.1% were employed. The unemployment rate among these immigrants was particularly low, and at 3.7% was the lowest among all immigrant groups, even lower than the overall unemployment rate of their Canadian-born counterparts (4.2%). Immigrants with a UK degree in health professions and related clinical sciences and engineering technologies and technicians outperformed Canadian-educated immigrants in these fields in terms of much lower unemployment rates (2.3% and 2.7% for UK-educated immigrants, compared to 3.8% and 4.6% for Canadian-educated immigrants). This outcome may relate to the overrepresentation of established immigrants among immigrants who completed their highest education in the UK. Table 7: Labour force statistics by main fields of study for the working age PSE immigrants who obtained their highest degree in the United Kingdom, 2006 All PSE immigrants Employment rate Unemployment rate Participation rate Fields of study Business, management, marketing and related support services 24,265 74.2% 4.4% 77.6% Health professions and related clinical sciences 14,740 73.5% 2.3% 75.3% Engineering 12,915 83.3% 3.7% 86.5% Engineering technologies/technicians 9,230 81.6% 2.7% 83.8% Mechanic and repair technologies/technicians 5,470 81.3% 2.4% 83.3% Construction trades 4,885 80.9% 3.5% 83.8% Education 4,765 67.9% 4.0% 70.7% Precision production 4,415 76.1% 3.9% 79.2% Personal and culinary services 4,375 73.1% 2.9% 75.2% Computer and information sciences and support services 3,980 82.4% 4.5% 86.4% Other 30,350 77.2% 4.4% 80.8% Total 119,390 77.1% 3.7% 80.1% Source: Census 2006 15
Section 2: Occupational outcomes and education The Census 2006 collected job information for persons who worked any time from January 1, 2005 to the Census reference week. One of the job characteristics, occupation, describes the kind of work performed by individuals. In this section, the population of analysis is immigrants (aged 25-64) with a postsecondary degree who have worked since January 1, 2005, regardless of whether they were in the labour force in the reference week. The occupation data are classified according to the National Occupational Classification 2006 (NOC 2006) and the analysis that follows is based on the 26 major groups of NOC. NOC 2006 identifies four occupational skill level categories (A, B, C and D), based mainly on the amount and type of education and training required to enter and perform the duties of an occupation. These occupations span the entire classification structure and are found in all sectors or areas of the labour market. Skill level A occupations usually require a university degree (bachelor s, master s or doctorate), while skill level B occupations usually require a college education or apprenticeship training. Skill level C occupations usually require secondary school and/or occupation-specific training. The lowest skill level D corresponds to occupations where on-the-job training is necessary. Management occupations (NOC-O) are not assigned to a skill level category, on the basis that factors other than education and training, such as previous experience, ownership of real property and capital, inherent decision-making skills and organizational capabilities, are usually the most significant determinants for employment in management occupations. In this paper, management occupations are considered equivalent to skilled occupations which normally require some postsecondary education. Skill level of occupation and highest level of educational attainment Table 8: Skill level of occupation by highest level of educational attainment, PSE immigrants vs. Canadian-born All skill levels NOC O NOC A NOC B NOC C NOC D NOC O, A & B Bachelor's degree 756,650 13.1% 35.7% 21.7% 23.1% 6.3% 70.6% Degree in medicine, dentistry, veterinary medicine or optometry 40,125 3.5% 70.5% 10.8% 11.5% 3.8% 84.7% Master's degree 265,600 14.9% 50.4% 15.6% 14.7% 4.3% 80.9% Earned doctorate degree 60,565 9.8% 76.1% 7.6% 4.8% 1.7% 93.6% Immigrants w ith university education 1,122,940 13.0% 42.6% 19.1% 19.7% 5.5% 74.8% Trades or college diploma 1,158,760 9.9% 11.5% 36.4% 32.9% 9.3% 57.7% All PSE immigrants 2,281,700 11.4% 26.8% 27.9% 26.4% 7.4% 66.1% Bachelor's degree 1,874,400 15.5% 51.3% 18.5% 12.8% 1.8% 85.4% Degree in medicine, dentistry, veterinary medicine or optometry 61,675 2.0% 92.4% 3.2% 2.0% 0.4% 97.6% Master's degree 419,040 21.5% 62.2% 10.1% 5.5% 0.8% 93.8% Earned doctorate degree 64,235 9.9% 80.1% 5.7% 3.4% 0.9% 95.7% Canadian-born w ith university education 2,419,350 16.1% 55.0% 16.3% 11.0% 1.6% 87.4% Trades or college diploma 4,593,350 9.6% 11.9% 43.1% 28.7% 6.7% 64.5% All PSE Canadian-born 7,012,700 11.8% 26.8% 33.9% 22.6% 5.0% 72.4% Source: Census 2006 Table 8 shows the associations between the highest level of educational attainment and skill level of occupations for immigrant postsecondary graduates. Postsecondary graduates are presumably all qualified to work in skilled occupations (NOC O, A and B). Of the 2,281,700 PSE immigrants in the workforce, 66.1% worked in skilled jobs. In general, the higher the education level, the more likely a 16
PSE immigrant was to hold a skilled job. About 9 in 10 (93.6%) immigrants with doctorate degrees held skilled jobs, while the percentages for immigrants with master s degrees and degrees in medicine, dentistry, veterinary medicine or optometry were 80.9% and 84.7% respectively, dropping to 70.6% and 57. 7% for graduates with a bachelor s degree and a trades or college diploma, respectively. For skill level A jobs, more than three-quarters of immigrants with doctorate degrees worked in such jobs (76.1%), compared to 50.4% for master s degree graduates and 35.7% for bachelor s degree holders. The majority of immigrants (70.5%) with a degree in medicine, dentistry, veterinary medicine or optometry worked in skill level A jobs. It is worth noting that sizable proportions of those who had medicine related degrees (15.3%), master s (19.0%) or doctorate degrees (6.5%) also held low skilled jobs (NOC levels C and D). Noticeable proportions of these highly educated graduates were also found to have worked in skill level B occupations where they were overqualified. Table 9: Skill level of occupation by highest level of educational attainment and period of landing Established immigrants Recent immigrants Very recent immigrants Source: Census 2006 All skill levels NOC O NOC A NOC B NOC C NOC D NOC O, A & B Trades or college diploma 892,620 10.6% 12.0% 38.1% 31.5% 7.9% 60.6% Bachelor s degree 435,370 15.5% 41.0% 21.1% 18.7% 3.6% 77.7% Degree in medicine, dentistry, veterinary medicine or optometry 25,010 3.3% 82.9% 6.2% 6.2% 1.4% 92.4% Master's degree 130,035 18.5% 55.5% 14.0% 10.1% 1.8% 88.0% Earned doctorate degree 34,465 11.5% 77.9% 6.0% 3.6% 1.1% 95.4% Total 1,517,505 12.6% 26.7% 29.9% 24.9% 5.9% 69.2% Trades or college diploma 133,995 8.0% 10.4% 31.5% 38.3% 11.8% 50.0% Bachelor s degree 134,785 11.4% 32.3% 23.0% 26.1% 7.2% 66.7% Degree in medicine, dentistry, veterinary medicine or optometry 6,120 4.7% 53.4% 20.9% 17.1% 3.9% 79.0% Master's degree 55,435 13.0% 50.8% 16.6% 15.4% 4.2% 80.4% Earned doctorate degree 12,140 9.1% 73.8% 10.0% 5.6% 1.5% 92.9% Total 342,475 10.1% 28.6% 24.8% 28.2% 8.2% 63.5% Trades or college diploma 132,145 7.1% 9.5% 29.5% 37.3% 16.6% 46.1% Bachelor s degree 186,490 8.7% 25.8% 22.3% 31.3% 11.9% 56.8% Degree in medicine, dentistry, veterinary medicine or optometry 8,995 3.1% 47.6% 16.8% 22.4% 10.1% 67.5% Master's degree 80,130 10.4% 41.8% 17.6% 21.8% 8.5% 69.7% Earned doctorate degree 13,960 6.4% 73.7% 9.6% 7.0% 3.3% 89.7% Total 421,715 8.3% 25.7% 23.1% 30.4% 12.4% 57.2% The breakdown by period of landing (Table 9) shows that among all postsecondary degree holders, more immigrants found jobs in skilled occupations with time elapsed in Canada. From January 2005 to the Census reference week in 2006, nearly 7 in 10 PSE immigrants who had landed in Canada in 1996 or earlier with a postsecondary degree had worked in a skilled job which requires at least some postsecondary education, compared to 63.5% among those who landed from 1996 to 2001, and 57.2% among PSE immigrants who landed after 2001. For immigrants with a bachelor s degree, the percentage of those working in skilled jobs was 77.7% for established immigrants, 10 percentage points higher than that for recent immigrants and 20.9 percentage points higher than the proportion for very recent immigrants. Among immigrants with a degree in medicine, dentistry, veterinary medicine or optometry, the proportion of those working in skill level A was 82.9% for established immigrants, decreasing 17