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The article is titled “Canada’s labour market is failing racialized immigrant women, requiring an urgent policy response.” It was originally published on April 3, 2025 and is authored by Marshia Akbar, Director of the BMO Newcomer Workforce Integration Lab and Research Lead on Labour Migration at the CERC Migration and Integration Program at Toronto Metropolitan University.

Despite Canada’s commitment to gender equity through human rights legislation and policies, the country ranked eighth in gender pay disparity among 43 nations in 2018.
While gender wage gaps affect all women, they are particularly pronounced for those from marginalized communities. A 2015 United Nations Human Rights report raised concerns about “the persisting inequalities between women and men” in Canada, highlighting the gender pay gap and its disproportionate impact on low-income, racialized and Indigenous women.
Historical data reflects the persistence of these inequalities. The 2001 and 2016 censuses reveal that labour market inequalities in Canada have remained both gendered and racialized over the past two decades.
Racialized immigrant women are among the most disadvantaged groups in Canada’s labour force. They experience higher unemployment rates and lower incomes than racialized men, non-racialized men and non-racialized women, regardless of whether they are immigrants or Canadian-born.
Building on this evidence, my recent analysis of the 2021 census further illustrates the ongoing disparities racialized immigrant women face in the Canadian labour market — even among those with university education.
A triple disadvantage
As of 2021, immigrants comprised about 23 per cent of Canada’s population, with racialized women making up 36 per cent of all immigrants. Their presence plays a critical role in Canada’s demographic composition and economic growth.
However, systemic barriers continue to limit their economic potential. Racialized immigrant women face a triple disadvantage due to their race, immigrant status and gender, making it harder for them to secure employment.
Data from 2021 highlights these disparities. Racialized immigrant women aged 25 to 54 had the lowest labour force participation and employment rates, and the highest unemployment rates.
The labour force participation rate measures the percentage of the working-age population that is either employed or actively seeking work, while the employment rate is the percentage of the working-age population that is employed.
The labour force participation rate of racialized immigrant women was 77 per cent, the lowest among all immigrant groups. Their employment rate was 68 per cent, significantly lower than that of racialized immigrant men (82 per cent) and non-racialized immigrant women (74 per cent).
Additionally, their unemployment rate reached 12 per cent, exceeding racialized immigrant men by seven percentage points and non-racialized immigrant women by three percentage points.
In contrast, Canadian-born women face fewer employment disparities between racialized and non-racialized groups. This suggests that labour market barriers are particularly harsh for immigrant women of colour.
Wage gaps reflect the triple disadvantage
Wage disparities in Canada vary significantly across demographic lines, with immigrant women facing the greatest disadvantages.
In 2020, racialized immigrant women aged 15 and over had the lowest median employment income of $30,400. Their earnings lagged behind racialized immigrant men, and non-racialized immigrant men and women.
While higher education improves earnings, it does not eliminate these disparities.
University-educated racialized immigrant women earned an average of $41,200 in 2020, compared to $57,200 for their male counterparts — a gender wage gap of 28 per cent.
Additionally, they earned 19 per cent less than non-racialized immigrant women ($50,800) and 32 per cent less than non-racialized Canadian-born women ($60,400). This placed them at the bottom of the earnings hierarchy.
These figures indicate that educational attainment alone is not enough to overcome the structural barriers that limit economic opportunities for racialized immigrant women. More deliberate actions are needed.
The road ahead
Despite initiatives like the Racialized Newcomer Women Pilot, which the federal government launched in 2018 to support career advancement for racialized newcomer women, employment and wage disparities persist.
Research has identified several structural factors that limit their access to meaningful economic opportunities. These barriers include gender biases, institutional racism, disproportionate caregiving responsibilities, the non-recognition of foreign credentials, gender gaps in skill development and job transitions, and occupational segregation.
To address these challenges, future research should adopt a problem-solving approach to address the root causes. Simultaneously, a comprehensive policy response is needed to tackle the systemic barriers in the labour market.
Targeted solutions are needed to help racialized immigrant women. Strengthening credential recognition, for instance, can help employers assess transferable skills across countries. Implementing equitable hiring practices and workplace integration policies are also essential.
Digital technology and artificial intelligence can also help eliminate bias in hiring and job matching. Settlement programs should account for the intersecting identities of racialized immigrant women to provide tailored support.
Most importantly, it’s crucial to recognize that ensuring equitable access to meaningful employment is not only vital for advancing gender and racial equity, but also essential for unlocking Canada’s full economic potential.

Canada’s labour market is failing racialized immigrant women, requiring an urgent policy response

April 4, 2025 • My Project Name

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