Recruitment and Selection of Immigrants - Hiring employees from the

untapped labour sourceGroup Opal

Anupreet Sidhu, Florence Kao, Nicholas Andrews and Vanja Radoja

Contents

• A big picture of the untapped potential employees pool

• Explore the benefits of hiring immigrants and government initiatives

• Hesitations of hiring immigrants/ Barriers of immigrants to find employment

• Introduce the process and tips of hiring from this alternative labour source.

The overview of current population and labour force

• As of April 1, 2011, Canada's population was estimated at 34,349,200; British Columbia was at 4,563,300.

• Immigration contributes to 70% - 75% of our country‘s net population growth in 2011. It is projected to be 94.7% by 2036.

• The percentage of Foreign-born population and visible minority are significant in major cities.

Foreign-born Visible Minority

% 2006 2031 2006 2031

Canada 20% 26 16 31

Vancouver 40 44 42 59

Toronto 46 50 43 63

The overview of current population and labour force

• By 2026, most of baby boomers will leave the labour market.

• Immigrants accounted for 21.2% of Canada's total labour force in 2006. And it is projected to be 33% by 2031.

• Immigration as a source of labour will be 100% of net labour force growth by 2030.

• The labour force will become older and increasingly ethno culturally diverse. – Close to 1 out of 4 in the labour force could be aged 55 or

over by 2021.– By 2031, about 1 in 3 in the labour force projected to be

foreign born and/ or visible minority.

Small Businesses in BC Businesses with less than 50 employees

• In 2010, small businesses in British Columbia accounted for 30% of the province’s GDP.

• Small business accounts for nearly half of all jobs in the province. 1,038,300 out of 2,466,000 jobs (July 2011).

• More than a million British Columbians are employed in small businesses.

• Economists estimate there will be more than one million job openings in British Columbia between now and 2015.

• Small businesses are particularly vulnerable when trying to deal with the impacts of labour shortages.

Small businesses are particularly vulnerable when trying to deal with

the impacts of Labour shortages.• Labour supply gaps are harming small businesses: curtailed growth

in goods and services; reduced hours of operation; missed new/ expanded market opportunities; reduced customer service; reduced productivity; and, burned out owners/ managers and staff.

• Barriers to small businesses in BC being able to respond to labour supply challenges; – lack of basic work skills/ attitudes, – inadequate training capacity, – lack of human resources and succession planning capacity, – lack understand of various education and training, – little consideration is given to recruiting people from the four

designated groups, – lack of time, information and resources; and – barriers to recruit/ hire immigrants: only 2% of small businesses

considered recruiting or actually recruited immigrants as a strategy for dealing with labour shortages.

New immigrants remain as a large untapped labour source

• Skilled Immigrants are highly educated. In BC; over 69% hold a postsecondary credential. The percentage of Immigrants with degree is double than local-born Canadian. (40% vs. 20%)

• Under-employment are very common. Highly educated immigrants held employment under low educational requirement jobs; retail sales clerks, truck drivers, office clerks, cashiers and taxi drivers.

• Immigrants tend to have lower employment rates in full- and part-time jobs compared to individuals born in Canada. Employment rate for immigrants still well below that of the Canadian born. 77.9% vs. 83.8% (2007)

• Unemployment rate is usually higher than Canadian born workers. 6.6% vs. 4.6% (May 2008)

• Immigrants tend to receive lower pay comparing to local born Canadian. $23.72 vs. $21.44 with the gap $2.28 per hour. It was widest $5.04 with immigrants landed within 5 years. There was also $5 hourly-wage gap in 2008 for university degree immigrants comparing with their Canadian-born counterparts.

(Source: BC Stats, 2010 Labour Survey); Very recent immigrants (landed 5 years or less)Recent immigrants (landed 5 to 10 years ago); Established immigrants (10+ years)