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Immigration has become an essential part of maintaining growth in Canada’s labour force. But the benefits can go beyond the immediate contribution. Rannella Billy-Ochieng’, Senior Economist at TD, tells Kim Parlee how immigrants also add to the economy through their children.
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* As the Canadian government looks to boost the country's immigration levels, a new report from TD Economics is shedding light on how Canadians born to immigrants, second generation Canadians are faring in the labor force and the opportunities ahead. And the findings bode well for Canada's future. Rannella Billy-Ochieng is a Senior Economist at TD Economics. She joins me now to discuss. It is lovely to have you here.
* Thanks for having me.
* Let's start with the report. It's a great report. And we'll start with a chart that we're going to bring up to the screen so everyone can see it. And it shows that within 13 years, half of all Canadian children will be second generation. That's second generation from immigrant families. Does this suggest a real shift in terms of what we've seen?
* Actually, I think the interesting thing that we found is that Canada does a very good job at attracting highly skilled immigrants. But their impact actually extends well beyond their immediate contribution. Their children also tend to be very educated. So what that means is that in the next 13 years we actually expect roughly half of Canadian children to belong to an immigrant, to have an immigrant background. And that means that we expect that the talent pipeline to be a bit more highly skilled.
* That's interesting. And yeah, it does bode well in terms of the economy and what's happening. Second generation Canadians, you say in your report, are more likely to pursue higher education in STEM programs compared to Canadians raised by non immigrants. How significant is that? I mean, like, what does that mean?
* So STEM occupations are actually very competitive. So for those persons who are able to get a job within these fields, they actually tend to earn a bit more. And what's also important is that these occupations are actually associated with the creation of new technologies. And that's a good thing for both workers and businesses. Because as you think of the importance of AI as we move forward as a nation, more and more businesses are actually going to lean on these types of skill sets. So it's actually good for workers who are actually equipped with these skills.
* And not only are they equipped with these skills, but your report says that they will have these skills, which will be more prevalent because of the demographics talked about. But they are more likely to go into management as compared to their parents.
* That's correct. And I think that's something that we really wanted to call out in the report. Because we often know the struggles that a lot of immigrants face when they come to Canada, but second generation they do a lot better than their parents. And I think that's something that we could celebrate as a nation because we know that they tend to ascend into management roles at a comparable rate like their peers who were born to actually Canadian parents. So I think that's something that's worth celebrating and acknowledging both for parents and the second generation cohort.
* It's interesting too for a lot of immigrant families often coming into a new country, if they can't find a place in a company the way want, they're very entrepreneurial. They start out on their own. What's also interesting is that you'll see that entrepreneurial mindset. Again, another benefit that's getting passed on to the second generation, including the skills from the STEM side too. And that's interesting because that could lead to some very interesting startups and technology and things you were alluding to.
* Yeah, so we generally see that second generation Canadians they inherit that entrepreneurial spirit from their parents. And they do create jobs in a lot of high skilled industries like health care, professional services. And that's important because when we think of our ambitions to move forward as a nation in things like innovation, these industries are going to be critical. Because the more representation we have in these sectors, the better it would be for the Canadian economy.
* Yeah. What are the barriers still? I mean, this is all a great news story, but I know there's still barriers.
* Yeah, I think it's worth mentioning that there is a lot to celebrate but there are still gaps. And one of the things we saw is that among French-speaking males, they tend to earn a wage gap that's roughly 8%. And also second generation Canadians who identify as visible minorities, they are less represented in management roles. So it suggests to us that there's work to be done, and we definitely have to keep an eye on things. So in the report we call out a few policies that are definitely something that we need to consider as a nation so that no one gets left behind.
* And what are they? Let's talk about the prescriptive. Like, what do you think needs to be in place?
* So I think it's very important to make sure that the young generation of talent, that we reach them at an early age, and we offer career services to them that could help tool their understanding of what the labor market offers. So in terms of co-op opportunities, we know that a lot of workers who have experiences in co-op programs they tend to do a lot better. So having a good start is very important. And it's going to set you up on a very good trajectory for future years. So that's one of the things we call out in the report. And there's certainly a lot more, a bit more to unpack right now.
* All right. Well, Rannella, it was great to have you here. Thanks so much.
* My pleasure.
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* Thanks for having me.
* Let's start with the report. It's a great report. And we'll start with a chart that we're going to bring up to the screen so everyone can see it. And it shows that within 13 years, half of all Canadian children will be second generation. That's second generation from immigrant families. Does this suggest a real shift in terms of what we've seen?
* Actually, I think the interesting thing that we found is that Canada does a very good job at attracting highly skilled immigrants. But their impact actually extends well beyond their immediate contribution. Their children also tend to be very educated. So what that means is that in the next 13 years we actually expect roughly half of Canadian children to belong to an immigrant, to have an immigrant background. And that means that we expect that the talent pipeline to be a bit more highly skilled.
* That's interesting. And yeah, it does bode well in terms of the economy and what's happening. Second generation Canadians, you say in your report, are more likely to pursue higher education in STEM programs compared to Canadians raised by non immigrants. How significant is that? I mean, like, what does that mean?
* So STEM occupations are actually very competitive. So for those persons who are able to get a job within these fields, they actually tend to earn a bit more. And what's also important is that these occupations are actually associated with the creation of new technologies. And that's a good thing for both workers and businesses. Because as you think of the importance of AI as we move forward as a nation, more and more businesses are actually going to lean on these types of skill sets. So it's actually good for workers who are actually equipped with these skills.
* And not only are they equipped with these skills, but your report says that they will have these skills, which will be more prevalent because of the demographics talked about. But they are more likely to go into management as compared to their parents.
* That's correct. And I think that's something that we really wanted to call out in the report. Because we often know the struggles that a lot of immigrants face when they come to Canada, but second generation they do a lot better than their parents. And I think that's something that we could celebrate as a nation because we know that they tend to ascend into management roles at a comparable rate like their peers who were born to actually Canadian parents. So I think that's something that's worth celebrating and acknowledging both for parents and the second generation cohort.
* It's interesting too for a lot of immigrant families often coming into a new country, if they can't find a place in a company the way want, they're very entrepreneurial. They start out on their own. What's also interesting is that you'll see that entrepreneurial mindset. Again, another benefit that's getting passed on to the second generation, including the skills from the STEM side too. And that's interesting because that could lead to some very interesting startups and technology and things you were alluding to.
* Yeah, so we generally see that second generation Canadians they inherit that entrepreneurial spirit from their parents. And they do create jobs in a lot of high skilled industries like health care, professional services. And that's important because when we think of our ambitions to move forward as a nation in things like innovation, these industries are going to be critical. Because the more representation we have in these sectors, the better it would be for the Canadian economy.
* Yeah. What are the barriers still? I mean, this is all a great news story, but I know there's still barriers.
* Yeah, I think it's worth mentioning that there is a lot to celebrate but there are still gaps. And one of the things we saw is that among French-speaking males, they tend to earn a wage gap that's roughly 8%. And also second generation Canadians who identify as visible minorities, they are less represented in management roles. So it suggests to us that there's work to be done, and we definitely have to keep an eye on things. So in the report we call out a few policies that are definitely something that we need to consider as a nation so that no one gets left behind.
* And what are they? Let's talk about the prescriptive. Like, what do you think needs to be in place?
* So I think it's very important to make sure that the young generation of talent, that we reach them at an early age, and we offer career services to them that could help tool their understanding of what the labor market offers. So in terms of co-op opportunities, we know that a lot of workers who have experiences in co-op programs they tend to do a lot better. So having a good start is very important. And it's going to set you up on a very good trajectory for future years. So that's one of the things we call out in the report. And there's certainly a lot more, a bit more to unpack right now.
* All right. Well, Rannella, it was great to have you here. Thanks so much.
* My pleasure.
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