From Graduation to Employment: Challenges for Canada’s International Students

International graduates play a crucial role in Canada’s labour market and economy, yet their early employment outcomes often differ from those of domestic graduates. A new study by Statistics Canada examines the employment experiences of international students who completed their postsecondary education in Canada in 2020. The findings highlight both their successes and challenges in transitioning into the workforce.

On This Page You Will Find:

• An overview of the employment outcomes of international student graduates in Canada
• Statistics on employment rates, wage disparities, and job quality
• Key barriers to employment, including work permits, credential recognition, and employer preferences
• Insights into education-job mismatches and occupational differences
• Policy recommendations to improve labour market integration for international student

Employment Outcomes of International Student Graduates

Of the 83,300 international students who graduated in 2020 and remained in Canada without pursuing further education, 88.6 percent were employed by 2023. This number was slightly lower than the 91.0 percent employment rate of Canadian graduates from the same cohort. The gap was more pronounced at higher education levels: at the bachelor’s level, 84.5 percent of international graduates were employed compared to 91.9 percent of Canadians; at the master’s level, 91.3 percent versus 94.6 percent; and at the doctoral level, 90.6 percent versus 94.2 percent. College graduates from both groups experienced similar employment rates.

Employment Rates and Job Quality

According to the NGS, international student graduates experience lower employment rates in the first few years after graduation compared to Canadian graduates. While a majority secure jobs, their employment rate remains lower than that of domestic students due to several barriers.

Despite these challenges, many international graduates eventually integrate well into the labour market. Those who obtain permanent residency tend to see improved employment rates over time, with some achieving parity with domestic graduates within five years. However, in the early post-graduation period, many struggle with job precarity, working in temporary or part-time positions while they secure long-term career opportunities.

Barriers to Employment

Several factors hinder international graduates’ successful entry into the labour market:

1. Work Permit and Immigration Hurdles—The transition from a Post-Graduate Work Permit (PGWP) to permanent residency can be complex and time-consuming, delaying access to stable employment.
2. Lack of Canadian Experience – Employers often prefer candidates with local experience, creating a challenge for new graduates.
3. Recognition of Foreign Credentials – Despite earning Canadian degrees, those with prior foreign education may face difficulties in credential recognition.
4. Employer Reluctance – Some employers hesitate to hire international graduates due to uncertainties surrounding work authorization and long-term residency plans.

Earnings Gap Between International and Domestic Graduates

A significant wage gap persists between international and domestic graduates, with international students earning, on average, lower starting salaries. This discrepancy is often attributed to constraints such as differences in networking opportunities and limited familiarity with Canadian workplace norms. Additionally, international graduates may take longer to secure positions that align with their qualifications, resulting in underemployment in lower-wage jobs despite their education levels.

However, studies show that international graduates in STEM (Science, Technology, Engineering, and Mathematics) and business-related fields are more likely to secure well-paying jobs sooner than those in humanities and social sciences. This trend aligns with Canada’s labour market demands, where there is a growing need for skilled professionals in the tech and finance sectors.

Education-Job Match and Occupational Differences

A key measure of successful workforce integration is securing jobs aligned with one’s education level. In 2023, only 36.6 percent of international student graduates with a bachelor’s degree held positions requiring a university degree, compared to 58.8 percent of Canadian graduates. Additionally, international graduates were over three times more likely to work in sales and service roles (30.6 percent) than their Canadian peers (9.5 percent), further contributing to underemployment.

Wage Disparities and Job Satisfaction

In 2023, those with a bachelor’s degree had a median annual income of $52,000—20.2 percent lower than the $65,200 median for Canadian graduates. Despite this, international graduates reported similar job satisfaction (81.0 percent), and job security (75.8 percent) levels compared to Canadian graduates (82.0 percent and 79.1 percent, respectively). However, salary satisfaction was notably lower, with only 48.7 percent of international graduates were content with their earnings compared to 58.0 percent of Canadians.

Considerations for Policymakers

The findings underscore ongoing challenges such as employment gaps, underemployment, and wage disparities. These issues may stem from differences in professional networks, employer preferences, and credential recognition.

Pathways to Improvement

Enhancing labour market outcomes for international graduates requires several policy interventions and strategies:

• Expedited Permanent Residency Pathways: Simplifying immigration processes, including category-based Express Entry draws and PGWP extensions, can help graduates secure stable employment sooner.
• Enhanced Employer Engagement: Encouraging businesses to recognize international talent through internships and mentorship programs can bridge the experience gap.
• Stronger Institutional Support: Universities and colleges can expand career services tailored to international students, offering networking events and work-integrated learning programs.
• Improved Credential Recognition: Ensuring that degrees earned in Canada are widely accepted across provinces and industries can help international graduates secure jobs that match their qualifications.

While international student graduates report comparable job satisfaction and security to their Canadian peers, they face hurdles in securing employment that matches their education level and achieving wage parity. Addressing these challenges is crucial for maximizing the potential of international students as contributors to Canada’s economy and workforce.

FAQ: Employment Challenges for International Student Graduates in Canada