According to a new report by Statistics Canada, the healthcare and social assistance sectors had the highest retention rates among temporary foreign workers (TFWs) who transitioned to permanent residency.
The study revealed significant variation in retention rates—the proportion of TFWs who continued working in the same sector after obtaining permanent residency (PR)—across different industries.
Which Industries Had the Highest Retention Rates?
The table below highlights the industries with the highest retention rates of temporary foreign workers (TFWs) who remained in the same sector after receiving permanent residency (PR) between 2011 and 2015:
Industry | Retention Rate (1 Year After PR) | Retention Rate (5 Years After PR) |
Healthcare and social assistance | 81.4% | 64.9% |
Utilities | 80.3% | 58% |
Finance and insurance | 77.1% | 55.2% |
Public administration | 72% | 51.2% |
Transportation and warehousing | 70.4% | 49% |
Manufacturing | 74% | 48.9% |
Construction | 70% | 47.3% |
Which Industries Had the Lowest Retention Rates?
In contrast, the following industries showed significantly lower retention rates over the same period:
Industry | Retention Rate (1 Year After PR) | Retention Rate (5 Years After PR) |
Management of companies and enterprises | 36.7% | 8.7% |
Real estate, rental and leasing | 46.2% | 19.4% |
Other services | 45.5% | 20% |
Administrative and support, waste management, and remediation services | 54.3% | 21% |
Agriculture, forestry, fishing, and hunting | 52.8% | 24.1% |
Why Is the Retention Rate Important?
Retention rates are significant because PR is often granted based on occupational needs linked to addressing labour shortages in specific sectors and regions.
Higher retention helps alleviate workforce shortages and promotes efficiency for businesses by reducing retraining costs.
A low retention rate may signal dissatisfaction among workers or challenges such as wage disparities, poor working conditions, or job instability.
Why Do Workers Change Industries?
Workers may shift industries due to factors like:
Wages: Seeking higher pay.
Working conditions: Improving quality of life.
Job stability: Pursuing more secure opportunities.
Skill requirements: Exploring roles better suited to their abilities.
Retention tends to be higher among industries offering better engagement and satisfaction.
What Was the Overall Retention Rate?
One year after PR: 68.4% of TFWs remained in the same sector.
Five years after PR: Retention dropped to 43%.
How Does the Work Permit Program Affect Retention?
Retention rates varied significantly by work permit program:
Highest retention rates:
High-skilled temporary foreign worker program participants (53.4%).
Intra-company transferees (51.4%).
Lowest retention rates:
Live-in caregiver program participants (28.6% by the fifth year).
How Was the Study Conducted?
The study analyzed TFWs who transitioned to PR between 2011 and 2015, focusing on those who held paid employment as work permit holders.
Reasons for leaving the industry included:
Transitioning to another sector.
Starting a business or becoming self-employed.
Unemployment.
Absence from tax records.
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