Canada has long been recognized as a place of inclusion and opportunity for newcomers. Our reputation as a welcoming and diverse nation has drawn thousands of highly skilled and educated newcomers through our robust immigration system and secure borders. The reality for many of these immigrants is starkly different from the promise of the ‘Canadian dream’ that enticed them to make the journey here.
Despite being selective and often prioritizing highly qualified individuals, many of these newcomers struggle to find work in their respective fields. We have engineers driving taxis and medical professionals working minimum-wage jobs. The underutilization of immigrant talent is becoming a broader economic issue with ripple effects on Canada’s growth and productivity.
My mother’s experience is an example of this challenging reality. She left a successful career as a nurse in London, England to not have her qualifications recognized in Canada. She had to navigate a system that overlooked her skills, requiring her to upgrade her credentials—all while raising three young children. This is a challenge many newcomers face and one that many simply cannot afford.
This disconnect between talent and opportunity is a missed chance for immigrants and Canada as a whole. Canada attracts some of the world’s brightest and most ambitious people yet fails to integrate their skills into the workforce. Many are underemployed in roles that do not align with their experience or training. This costs Canada socially and economically. It stifles innovation, productivity, and growth. By fully utilizing the skills and knowledge of these immigrants, we can boost productivity, foster innovation, and drive economic growth, benefiting not only newcomers but the entire Canadian economy.
This struggle also impacts Canada’s small business sector, which faces a crisis as many owners approach retirement age with no one willing to take over their businesses. The pandemic exacerbated some of these closures, but the real issue is far more profound. As high taxes, increased regulations, and the monopolistic practices of large Canadian corporations make it increasingly unappealing for Canadians to take on small business ownership, we face a productivity issue that threatens the country’s economic future.
Small businesses are the backbone of our economy. They create jobs, drive local economies, and foster innovation. They are often the easiest and most effective ways for immigrants to gain employment and financial success, yet fewer immigrants are taking the risk to start their own businesses. The closure of small businesses means fewer jobs, less competition, and slower economic growth, and we’re already seeing this impact on Canada’s productivity, with businesses closing their doors and leaving unfilled gaps.
Connor Garel’s recent article in 3 magazine, “Canada Has an Immigrant Problem. It’s Not the One You Think,” eloquently describes the complexities of this situation. He points out that Canada’s issue is not with immigrants but instead with how we integrate and utilize their talents and limit their access to vital resources. We must leverage their expertise and ambitions and not let bureaucratic red tape and credential recognition barriers waste invaluable human capital. As a result, we’re not only failing to provide a path to success for those who came here in search of opportunity, but we’re also missing out on a vital solution to our growing economic challenges.
The underutilization of immigrant talent and the looming small business succession crisis may be intertwined. While many immigrants struggle to find work in their fields, they could be the key to revitalizing Canada’s small businesses. Immigrants are not just a solution but a potential powerhouse for our economy. They often bring a strong desire to succeed and persevere to overcome numerous challenges. Through adequate support, many can take over small businesses, helping to infuse local economies with new ideas, energy, and a global perspective.
Realizing the potential of immigrant talent requires systemic changes in Canada. We must invest in smoother and faster credential recognition processes, ensuring qualified immigrants can enter their roles sooner. This includes working with professional regulatory bodies to streamline the process and eliminate unnecessary barriers that keep skilled professionals from contributing effectively to our workforce. We must provide immigrant entrepreneurs with access to resources and networks. Many newcomers may have the skills and drive to run a business but need more financial resources, mentorship, or market knowledge to get started.
A vital part of this support must include reforming Canada’s financial system to allow for easier access to loans, particularly for immigrants. Many newcomers face significant challenges when securing business loans or lines of credit due to limited credit history, unfamiliarity with the Canadian banking system, or the stringent requirements that many financial institutions impose. The necessity of this change is apparent. By creating tailored financial products for immigrants and offering flexible loan programs, we can give immigrant entrepreneurs the capital they need to launch and grow their businesses. This would empower them to contribute to the economy and help fill the gap left by retiring small business owners, driving economic growth and job creation in communities across the country.
Additionally, a concerted effort needs to be made to support immigrant small business owners by reducing the tax burden on small businesses and encouraging competition with the larger oligopolies that dominate Canada’s market sectors like retail. Immigrant entrepreneurs could bring fresh ideas and business models that foster innovation and diversity in the marketplace, helping to close the widening productivity gap across Canada.
This isn’t just about doing right by immigrants—it’s about doing what’s good for Canada. A more inclusive, supportive approach to helping immigrants gain access to Canada’s workforce and the economy would uplift individuals and families and contribute significantly to Canada’s overall economy. Newcomers bring a wealth of global experience, new ideas, and an understanding of navigating different markets. Recognizing the importance of immigrants in shaping Canada’s economic future should make us all the more committed to addressing this issue.
Canada has an immigrant problem, but it’s not rooted in numbers or borders. It’s a problem of underutilized talent and lost potential. Solving this problem would be our greatest asset in revitalizing our economy and setting the stage in an ever-globally competitive marketplace. Canada can’t afford to waste talent in a world that’s becoming more competitive and interconnected. Empowering immigrants and supporting small businesses strengthens our communities and positions Canada to thrive in the global economy.