On This Page You Will Find
- How immigrants support Canada’s healthcare system
- Workforce renewal and retirement trends in health occupations
- Occupation-specific challenges and renewal ratios
- Underemployment and barriers to credential recognition
- Policy suggestions to strengthen immigrant integration in healthcare
Canada’s Healthcare Workforce Is Growing – But So Are Pressures
Canada’s healthcare sector has grown significantly over the past 25 years, with the number of workers in health occupations more than doubling from 1998 to 2024. That translates to an increase of 898,000 jobs – a 114.8 per cent rise. Health-related employment has expanded at an average annual rate of 3 per cent, which is double the rate across all occupations.
Despite this impressive growth, the sector continues to face serious challenges. One of the biggest issues is the aging of the healthcare workforce. In 2024, 17.9 per cent of health workers were aged 55 or older. While this figure has dropped slightly from a peak of 19.6 per cent in 2018, it remains significantly higher than the 9.5 per cent recorded in 1998. This creates a growing need to attract younger workers and ensure the sustainability of care delivery.
Immigration has emerged as one of the key ways to meet this challenge. A recent Statistics Canada study – using data from the Labour Force Survey and the 2021 Census – explores how immigrants and non-permanent residents are contributing to workforce renewal across a wide range of health occupations.
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Immigrants and Young Workers Drive Workforce Renewal
One of the key metrics used in the study is the occupational renewal ratio. This ratio compares the number of workers aged 25 to 34 with those aged 55 to 64 – the group approaching retirement. A renewal ratio above 1.0 suggests there are more younger workers entering the field than older workers leaving it.
In 2024, the overall renewal ratio for health occupations was 1.9, meaning there were nearly two younger workers for every one nearing retirement. This figure is higher than the national average across all occupations, which was 1.5.
However, these numbers vary widely by occupation. While roles such as licensed practical nurses had a renewal ratio of 2.2, the ratio among nurse aides, orderlies and patient service associates was just 0.9. This means more workers are exiting than entering the profession – a signal of potential shortages ahead.
What helps offset this imbalance is the significant contribution of immigrants. In 2021, recent immigrants (those admitted between 2016 and 2021) and non-permanent residents together accounted for nearly 24 per cent of all nurse aides, orderlies and patient service associates aged 25 to 34. In other words, almost one in four young workers in these occupations were newcomers to Canada.
This pattern repeats in other health fields. Among medical specialists aged 25 to 34, 8.6 per cent were non-permanent residents – a notable share – while another 2.2 per cent were recent immigrants. These newcomers are helping to improve renewal ratios in specialties that require many years of education and training.
Highly Skilled – But Underemployed
A striking finding of the Statistics Canada report is the extent to which immigrants in healthcare are overqualified for the jobs they hold. Many of these workers, particularly in support roles like nurse aides or orderlies, have university degrees that exceed the educational requirements of the position.
In 2021, nearly 47.1 per cent of recent immigrants working as nurse aides had a bachelor’s degree or higher. By contrast, only 6.3 per cent of Canadian-born workers in the same occupation held that level of education. Among the degree-holding immigrants, about 24.6 per cent had completed a health-related degree outside of Canada.
The trend continues among licensed practical nurses. In this group, 62 per cent of recent immigrants held a bachelor’s degree or higher – a level of education that is typically not required for the position. In fact, the share of degree-holders among these immigrants is nearly identical to that of registered nurses born in Canada.
Despite having equivalent – or even superior – qualifications, these newcomers often find themselves limited to lower-status or lower-paid jobs. This reflects well-documented challenges around the recognition of foreign credentials, lack of Canadian work experience, regulatory requirements, and limited access to bridging programs.
Not Just Replacement – Expansion Is Needed
Even with strong renewal ratios in many occupations, healthcare vacancies remain high. In the third quarter of 2022, job vacancies in health occupations hit a record 97,415 – more than double the number recorded in 2019 before the pandemic. At the same time, Canadians are reporting increased unmet healthcare needs.
This suggests that merely replacing retiring workers will not be enough. The healthcare workforce must expand if it is to meet rising demand, especially as the number of Canadians aged 65 and older is expected to reach 11.8 million by 2051.
Immigrants are well-positioned to play a central role in this expansion. They are already disproportionately represented among young healthcare workers and have demonstrated a willingness to enter and remain in the sector, even when barriers prevent them from working at their full skill level.
A Call for Policy Action
The report makes it clear that immigration is not just supplementing the healthcare workforce – it is sustaining it. Without immigrants and non-permanent residents, the renewal ratios in several key occupations would fall below sustainable levels. But the benefits of immigration are currently limited by underemployment and skill mismatch.
Policy changes could help Canada better harness the talent it is already attracting. These include:
- Improving the speed and transparency of foreign credential recognition processes
- Expanding bridging programs that allow foreign-trained professionals to meet Canadian licensing requirements
- Supporting upskilling and mentorship programs to ease the transition into higher-level roles
- Aligning immigration selection systems more closely with healthcare labour market needs
Without such measures, Canada risks under-utilising the human capital it brings in – while continuing to face persistent shortages in critical health occupations.
Conclusion
Immigrants are not just a part of Canada’s healthcare workforce – they are essential to its future. The Statistics Canada report confirms that newcomers are playing a key role in renewing the health labour force, particularly in areas with low replacement rates. Yet they also face significant challenges, from underemployment to systemic barriers that prevent them from working at their qualification level.
As Canada prepares for the demands of an aging population, it must look not just to recruit but to empower immigrant health professionals. With better recognition of their skills and clearer pathways to licensure, immigrants could contribute even more – not only to workforce numbers, but to the quality and sustainability of Canada’s health system.
Frequently Asked Questions
Why are immigrants important to Canada’s healthcare system?
Immigrants help fill gaps in the workforce caused by an aging population and rising demand for healthcare services. Many occupy roles that are difficult to staff, especially in direct care.
Are immigrant healthcare workers overqualified for their jobs?
Yes. Many immigrants in entry-level health roles have university degrees or health credentials from abroad, yet face barriers to working in more advanced positions.
What is a renewal ratio, and why is it important?
A renewal ratio compares the number of younger workers (aged 25 to 34) to those nearing retirement (aged 55 to 64). A low ratio signals potential future shortages in that occupation.
Why do immigrants work in lower-skilled healthcare jobs despite high qualifications?
Barriers such as foreign credential recognition, regulatory hurdles, and lack of Canadian experience often limit their access to licensed roles, leading to job mismatch and underemployment.
What policy changes could help immigrant healthcare workers in Canada?
Improving foreign credential recognition, creating more bridging programs, and aligning immigration with healthcare workforce needs would help skilled immigrants work at their full potential.