A recent survey by Statistics Canada researchers Yuqian Lu and Feng Hou explores how temporary foreign workers (TFWs) in Canada transition to permanent residency (PR) and their industry retention over time. This comprehensive study sheds light on the vital role TFWs play in Canada’s labor market, their retention rates across industries, and the factors influencing their career paths post-PR.
Key Highlights of the Study
- High Initial Retention: Over two-thirds (68.4%) of TFWs continued in the same industry one year after gaining PR.
- Decline Over Time: By the fifth year, retention dropped significantly to 43%, indicating challenges in long-term industry retention.
- Sector-Specific Trends: Industries like health care, utilities, and finance showed strong retention rates, while agriculture, real estate, and caregiving had the lowest.
- Program Variability: Higher-skilled TFWP participants and intra-company transferees exhibited the highest retention, while live-in caregivers had the lowest due to demanding working conditions.
Detailed Findings
Retention by Work Permit Program
The study analyzed work permit holders across various programs. Retention rates varied significantly depending on the type of permit and sector.
| Work Permit Program | Person Count | One-Year Retention (% in Same Industry) | Five-Year Retention (% in Same Industry) | Notes |
|---|---|---|---|---|
| Temporary Foreign Worker Program | ||||
| Agricultural programs | 2,800 | 68.8 | 43.3 | Declining retention in physically demanding jobs |
| Live-in caregiver programs | 16,970 | 50.3 | 28.6 | Lowest retention due to challenging work conditions |
| Other, higher-skilled | 42,130 | 77.6 | 53.4 | Consistently strong retention |
| Other, lower-skilled | 13,510 | 75.3 | 46.0 | |
| International Mobility Program | ||||
| Intra-company transferees | 6,740 | 77.2 | 51.4 | High retention due to stable employment opportunities |
| Youth exchange program | 13,530 | 59.6 | 33.1 | Relatively low retention |
| Spouses of skilled workers | 16,380 | 64.8 | 41.5 | Higher rates of non-employment |
| Post-grad employment | 40,150 | 64.7 | 39.0 | Notable participation in self-employment |
Retention by Sector
Retention rates also varied significantly across industries, reflecting differences in wages, working conditions, and career growth opportunities.
| Industry | Person Count | One-Year Retention (% in Same Industry) | Five-Year Retention (% in Same Industry) | Notes |
|---|---|---|---|---|
| Utilities | 580 | 80.3 | 58.0 | Highest five-year retention rate |
| Health care and social assistance | 13,700 | 81.4 | 64.9 | Consistently high retention |
| Finance and insurance | 7,190 | 77.1 | 55.2 | |
| Agriculture, forestry, fishing | 2,810 | 52.8 | 24.1 | Lowest retention among all sectors |
| Accommodation and food services | 33,250 | 76.0 | 46.9 | |
| Real estate and rental and leasing | 4,650 | 46.2 | 19.4 | Lowest five-year retention |
Discussion
The findings reveal clear patterns and challenges:
- Industries with High Retention: Sectors offering stable jobs, better working conditions, and higher wages, such as health care and finance, retained more workers.
- Low-Retention Sectors: Physically demanding or seasonal work, such as agriculture and caregiving, saw significantly lower retention rates.
- Self-Employment Trends: Industries like construction and arts showed higher self-employment rates one year post-PR transition (5%-7%), reflecting a shift in employment preferences.
Policy Recommendations
- Targeted Retention Programs: Focus on supporting workers in low-retention sectors, such as agriculture and caregiving, with incentives and improved conditions.
- Skill Development Initiatives: Provide training for TFWs to transition into higher-skilled roles and achieve long-term stability.
- Employer Engagement: Encourage industries to create favorable working conditions and career growth opportunities to retain skilled workers.
- Enhanced Monitoring: Continue analyzing retention trends to identify and address emerging challenges.
The study underscores the importance of foreign workers in Canada’s labor market while highlighting disparities in retention across industries and programs. By addressing these challenges with targeted policies and workforce development initiatives, Canada can ensure the successful integration of foreign workers into its economy.
For policymakers, employers, and workforce planners, these findings serve as a crucial guide to shaping the future of Canada’s labor landscape.
‘Sources:
Statistics Canada’s Non-permanent Resident File and Longitudinal Worker File.
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