Immigrants drive Ontario's labour force growth

The Financial Accountability Office of Ontario (FAO) report highlights that international immigrants increasingly drive Ontario's labour Force growth. Based on 2021 Statistics Canada data, the study focuses on immigrants with permanent residence status in Canada. With immigration to Ontario reaching 227,424 in 2022, these new residents play a "significant role" in Ontario's economic growth.

The report reveals that despite a decrease in numbers in 2020 and 2021 due to COVID-19, Ontario welcomed many newcomers in 2022 due to increased border restrictions and higher immigration targets. The province's share of immigrants to Canada has increased to 42.5% this year. Despite fluctuations, immigrants account for a growing share of the province's labour force growth, constituting 39% from 2007-2014 and 63% from 2015-2022.

This report provides information on long-term trends in the labor market of international immigrants in Ontario. The scope of this report is limited to international immigrants (also known as immigrants in this report), which include economic immigrants, family-sponsored immigrants, refugees, and other immigrants. This report's analysis excludes interprovincial migrants and non-permanent residents like temporary foreign workers and international students.

The percentage of immigrants in the core working age group (25-54 years) has increased from 43.7 percent of those who arrived in the 1980s to 62.3 percent of those who arrived between 2016 and 2022.

Immigrants are younger in age than the rest of the Ontario population. From 2016 to 2022, 92.0 percent of immigrants were under the age of 54, compared to 69.0 percent of the total population.

Policy changes have resulted in a greater percentage of recent core working-age immigrants having postsecondary education credentials (80.0%) and Canadian work and/or study experience (38.5%) compared to long-established immigrants (66.7%) and 5.4%, respectively.

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