Immigrant Talent, Retention, and Canada’s Workforce Reality

On December 15, COMPASS Immigration Solutions attended a Workplace and Immigration Network (WIN) event focused on building a sustainable workforce with immigrant talent. The keynote speaker, Dr. Wendy Cukier, Founder and Academic Director of Toronto Metropolitan University’s Diversity Institute, presented research grounded in economic reality rather than polarized immigration debates.

Her message was straightforward: immigration, inclusion, and innovation are interconnected drivers of Canada’s long-term economic growth and workforce stability.

Canada’s Aging Workforce and Labour Shortages

Canada’s workforce is aging rapidly. In nearly half of Canadian industries, more than 25 percent of employees are already over the age of 55. At the same time, employers continue to face persistent labour shortages, particularly in health care, manufacturing, technology, and the skilled trades.

Immigration is therefore the primary source of labour force growth, not as a policy preference but as a demographic necessity. Immigrants now account for approximately 26 percent of Canada’s labour force and are overrepresented in STEM, research and development, and advanced technology roles. In innovation hubs such as Waterloo, immigrant professionals provide much of the AI and technology talent driving local economic growth.

Despite this contribution, a disconnect exists between the demographics Canada prioritizes in economic immigration and the realities of workforce participation. Programs such as Express Entry heavily favour candidates under 30, even though many highly productive immigrants fall outside that narrow age range. In several technology clusters, the median age of immigrant professionals is in the early 30s, with many well over 45, raising questions about how economic potential is defined.

Diversity, Inclusion, and Business Performance

Dr. Cukier’s research reinforces that diversity and inclusion are not abstract values. They are practical business strategies.

Organizations with inclusive cultures consistently report higher levels of creativity, innovation, and adaptability. More diverse firms generate a greater share of revenue from new products and services, while inclusive workplaces experience stronger retention and fewer vacancy gaps during periods of change.

Immigration and the Housing Narrative

Immigration is frequently blamed for Canada’s housing affordability challenges, but the data presents a more nuanced picture.

While immigration does contribute to housing demand, it accounts for an estimated 10 percent of housing cost increases nationally. In recent years, housing prices rose by roughly 40 percent, meaning immigration explains only about four percentage points of that increase. Other drivers include speculation, low interest rates, zoning constraints, an aging population, and a shortage of construction workers.

Framing immigrants as the primary cause of housing pressures distracts from effective policy solutions and risks undermining the workforce Canada relies on to address supply constraints.

Retention: A Growing Risk

One of the most concerning findings relates to immigrant retention. Among immigrants aged 18 to 34, the same group most actively targeted by economic immigration programs, nearly 30 percent report being likely to leave Canada within the next two years.

Underemployment is a key factor. Foreign-educated professionals face an underemployment rate of approximately 26 percent, compared to 11 percent for Canadian-educated workers. For women with foreign credentials, underemployment approaches 28 percent. Early career mismatches often lead to lower earnings, reduced job satisfaction, and eventual decisions to leave Canada.

When skilled immigrants depart, Canada loses not only talent but future contributors to the Canada Pension Plan, Old Age Security, and the publicly funded health care system.

A Practical Path Forward

Dr. Cukier emphasizes execution over theory and rhetoric. Immigrants are not a monolithic group, and better data is essential to identifying where systems fail.

Early investment in credential recognition, competency-based training, inclusive hiring practices, and stronger collaboration between employers, educators, and settlement providers can significantly improve outcomes. Supporting immigrant entrepreneurs and treating digital and AI skills as foundational workforce competencies will further strengthen Canada’s economic resilience.

Conclusion

Immigrant talent is not a short-term fix for labour shortages. It is a long-term driver of innovation, productivity, and economic stability.

Canada’s challenge is no longer attracting skilled immigrants. It is ensuring that policies, employers, and institutions make effective use of the talent already here. Improving retention and inclusion is not just a social objective. It is central to Canada’s economic future.