Introduction

Canada boasts about being a multi-cultural mosaic, a land of opportunity, with a vision to build “a stronger Canada – a safe and secure country with a shared bond of citizenship and values; a country that continues to support our humanitarian tradition and draws the best from the world to help build a nation that is economically, socially and culturally prosperous” (Government of Canada, 2011). Yet a look at the income statistics for Canadian immigrants makes one wonder whom is prospering economically. Are Canadian immigrants given equal economic opportunity when they arrive here, or are they subject to economic inequality?

To answer this question, one can first look at earnings statistics and reports from Statistics Canada. This information can provide basic earnings information on immigrants, which will show how much Canadian immigrants earn in comparison to their native Canadian counterparts. A few drawbacks of using this information are that the statistics haven’t been updated since 2006, so the numbers may not be completely accurate, and numbers alone do not tell the whole story. As such, peer reviewed research articles and papers on the subject of economic inequality in Canadian immigrants can be used. These articles and papers provide both qualitative and quantitative information that paints a clearer picture of the situation. However, many of these papers are usually biased towards writer’s point-of-view, so there may be a lack of complete information. Finally, this issue can brought to light by telling of personal experiences and stories.
Argument

Using a variety of information from Statistics Canada, research reports, and personal observations, I will argue that immigrants to Canada are in fact facing economic inequality when they arrive. This inequality can be attributed to a number of factors. First, the government does not accept or recognize foreign education credentials from many countries. Second, because these immigrants often come from countries with different labour markets, the Canadian government does accept their foreign work experience, or does not understand how their work experience in their home country will transfer into the Canadian marketplace. These two issues devalue immigrants’ workplace value, landing them jobs in low-paying, entry-level positions. Finally, many immigrants are discriminated against by employers. As explained in conflict theory, specifically dual labour market theory, some employers take the view that immigrants should be placed in the secondary market, so as not to overtake the power of the dominant group. Discrimination is also made on linguistic ability. As a result of this economic inequality, immigrants struggle to live above the poverty line, are forced to live in unfavourable neighbourhoods or live in homes with multiple generation of family, and run the risk of being a drain on the Canadian economy, instead of boosting it.
Foreign Education Credentials

One of the largest barriers to economic equality of Canadian immigrants is that the government and professional organizations do not recognize or transfer their foreign credentials, because they are not viewed as equivalent to the education received in Canada (Government of Canada, 2012). Without the appropriate education credentials, immigrants are forced to take entry-level jobs that pay next to minimum wage. Statistics Canada reports that between 1991 and 2006, the proportion of long-term immigrants with a university degree found in jobs such as clerks, truck drivers, salespeople, cashiers and taxi drivers, rose steadily (Statistics Canada, 2009). The 2006 Census report on earnings and incomes of Canadians noted that the income gap between recent immigrants and Canadian-born workers has continually widened, with immigrant men earning 63 cents per every dollar received by Canadian-born men, and immigrant women earning 56 cents per every dollar received by Canadian-born women (Statistics Canada, 2009).

With statistics like this, why would anyone want to immigrate to Canada? In a 2005 study of immigrants to Toronto, Ontario, in which new citizens were interviewed about their personal immigration experiences, found that “based on Canada’s [immigration] point system, these ….. immigrants believed their foreign skills would be valued and recognized in Canada, however their post-migration experiences involve high levels of unemployment and underemployment. Participants remark on the discrepancy between the selection/admission process and the employment process in Canada” (Somerville & Walsworth, 2010).

When immigrants come to Canada expecting to get into a career that is related to their education, only to find that their education means nothing, they have two options: one, find a job at any place that will hire you so you can earn a living, and two: upgrade your education. The second option is one that many new immigrants opt for, particularly highly skilled immigrants. Immigrants who previously worked in professional occupations, such as medicine or engineering, often have their credentials assessed and are required to take additional formal or non-formal education to receive their certification to practice in Canada. Other immigrants “embark in formal education and training to validate, recycle, enrich, or change their occupational profiles” (Adamuti-Trache, 2010). For example, my mom works at Scotiabank and meets new people all of the time. She has told me a few stories of clients who have immigrated to Canada that are fully trained professionals in their home country, but here, their qualifications do not matter. Two ladies in particular, she noted were from the Philippines. One was a doctor of veterinary medicine, and the other a registered nurse. Both had to go back to university for four years to be qualified to practice here in the same level as back home. This furthering and renewal of education helps these new citizens catch up economically to the native-born population at a much quicker rate. However, with the high cost of tuition in Canada, additional post-secondary education many not be an economically feasible option.
Non-Canadian Work Experience

Another barrier to economic equality of Canadian immigrants is that the government and employers do not recognize non-Canadian work experience. Many immigrants come from countries where the labour market is much different than here in Canada. When assessing foreign work experience and trying to plot it against similar tasks and skills needed in the workforce here, it is often unknown how some of these skills translate. This “less than-perfect international transferability of human capital is likely to lead to many new immigrants being overqualified for their jobs during their first years in Canada” (Banerjee, 2010). This again translates to jobs that are low-paying and require very little skill. However, Banerjee also indicates that “as new immigrants gain Canadian specific experience, and employers become familiar with the skills and abilities of these new arrivals, they are more likely to get jobs that match their human capital endowments, and experience rapid earnings growth” (Banerjee, 2010). While this may seem like a positive move, on average, it takes about ten years for immigrants to start earning an average Canadian salary (Fellegi, 2006). Employer Discrimination

The final major barrier to economic equality for Canadian immigrants is discrimination by employers. Employers usually exhibit two forms of discrimination: linguistic discrimination and labour market discrimination. Even though an immigrant may be fluent in an official language, they may still have noticeable ethnic markers such as an accent. Some Canadian employers consider some foreign accents more desirable than others. They will also make assumptions about a person’s linguistic ability based on their accent. Employers have been known to hire or not hire employees based on these perceptions (Banerjee, 2010).

Another form of discrimination, called labour market discrimination (also known as dual labour market theory, is an umbrella theory of conflict theory. Conflict theory assumes that people compete for limited resources, and prejudice and discrimination are outcomes for competing for these resources (Ravelli & Webber, 2010). Under the dual labour market theory, there are two labour markets; the primary labour market and the secondary labour market. The primary labour market consists of “secure positions that pay a healthy salary, offer attractive fringe benefits, and have the potential for upward mobility within an organization” (Ravelli & Webber, 2010). The secondary labour market consists of “jobs that…..are often insecure and temporary, pay hourly wages, provide only legally required benefits, and rarely offer any training to advance one’s position” (Ravelli & Webber, 2010). With this train of thought in mind, employers may intentionally put Canadian-born workers in the primary labour market, and immigrants into the secondary labour market, even if they are equally as qualified as the Canadian-born workers. This is also part of devaluing immigrants’ education and work experience.
Effects on Society Economic Inequality for Canadian Immigrants

According to a Statistics Canada report, “approximately three Canadian in ten (between 29% and 32%) could be a member of a visible minority group in 2031” (Malenfant, Lebel, & Mart, 2010). If the assumption is made that a majority of the members of the minority groups have immigrated to Canada, and that immigrants continue to experience economic inequality, there could be huge implications on society. First, if a majority of this 29% of our population is earning wages that are at or just above the poverty line, they will not have as much disposable income, which means they will decrease their consumption and increase their savings (Ostrovsky, 2008). This has the potential to translate to a negative effect on the Canadian economy.
A second effect of have a low income is the ability to afford housing. Housing costs for both renting and buying in Canada make it next to impossible to live on your own, even if you make the average Canadian wage. For immigrants who are having to wait ten years to make an average wage, they will either have to find housing in less-than-favourable neighbourhoods where housing is affordable, or live in homes with multiple families or multiple generations of family. In the Hampton Village area of Saskatoon where my mom lives, a lot of her neighbours are immigrants, and many homes have multiple families or generations living under the same roof, to make living affordable. For those who end up living in the less-than-favourable neighbourhoods, they may also experience additional discrimination for society for living in a “bad” neighbourhood.
A third effect of income inequality and the inability to gain meaningful employment in Canada is a decline in health of immigrants. Employees who are working in positions for which they are overqualified often become dissatisfied with their jobs (Chena, Smitha, & Mustard, 2010). This leads to health issues such as depression and stress, which can lead to cardiovascular issues. An increase in health related problems can translate into the use of more government social programs, particularly healthcare.
As well, if immigrants are unable to find satisfying work, they may experience job and income instability. In periods of unemployment they may be eligible for Unemployment Insurance, which is also a drain on government social programs.
Remedying the Issue
It is apparent that there are some big flaws in Canada’s immigration policy that are making it difficult for new immigrants to flourish economically and otherwise when they arrive. The government needs to make some changes to the policies that will allow for a smoother transition into the Canadian workforce and making our new neighbours and friends “equal” with us Canadian natives. There are a few solutions that can be implemented that can help this transition.
The first thing that needs to be implemented is a better foreign education credential recognition program. In March of 2012, Citizen and Immigration Canada made a change to the immigration that now allows foreign credentials to be assessed before they arrive in Canada (Citizenship and Immigration Canada, 2012). While this may assist potential immigrants in knowing what their financial and employment situation may be when they come to Canada, and may also assist them in deciding whether or not to immigrate here, the program really only benefits those whose credentials will mean something in Canada. A program needs to be implemented to open up acceptance of credentials so that more immigrants can come to Canada and receive meaningful employment and contribute to the economy. The second thing that needs to be implemented is a program that better assists matching foreign work experience skills to the Canadian market. This will also assist new immigrants in gaining meaningful employment and help them increase the economic status quickly. If the government is unwilling to implement programs such as these and the expectation is that new immigrants will need to upgrade their education, the programs for financial aid and scholarships for new Canadian immigrants should be implemented. This will assist more immigrants in their educational and career pursuits, and encourage more immigrants to pursue post-secondary education.
Conclusion
Canada attracts many highly-skilled and talented immigrants into the country, but these new Canadian immigrants are subjected to economic inequality. This inequality is caused by the government and professional organizations not recognizing or transfer their foreign credentials, the inability to transfer skills from non-Canadian work experience to the Canadian marketplace, and discrimination by employers. The effects of economic inequality include poverty, inability to get ahead economically, and health issues, all which are drains on the government’s social programs. To help with a smoother transition to Canada and increase the economic equality of new immigrants, the government should implement a program that accepts credentials from more foreign institutions so that new immigrants can obtain meaningful employment. They should also implement a program that helps transfer foreign work experience skills to the Canadian market. In addition, they should implement a financial aid and scholarship program for new immigrants to assist those who are required or would like to upgrade their education so they can have more economic earning power. By implementing these types of programs, Canada will be able to attract more skilled and talented immigrants who will be able to contribute more to the Canadian economy and will be happier and more engaged Canadian citizens.

Bibliography
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