High Retention Rates Among Work Permit Holders in Certain Industries After Obtaining Permanent Residency
A new report by Statistics Canada reveals that the retention rates of temporary foreign workers (TFWs) who obtain permanent residency (PR) vary significantly across different industries. The report examines the percentage of individuals who remain in the same industry after receiving their PR, where they had previously worked under a work permit.
Industries with the Highest Retention Rates
According to the report, some industries have higher retention rates for former TFWs who become permanent residents. The table below shows the one-year and five-year retention rates after obtaining PR
| Industry | 1-Year Retention | 5-Year Retention |
|---|---|---|
| Health care and social assistance | 81.4% | 64.9% |
| Utilities (electricity, water, etc.) | 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% |
Key Points
Health care and social assistance has the highest retention rate, with over 81% staying in the industry one year after receiving PR and 64.9% remaining after five years.
Utilities, finance, and insurance also show strong one-year retention rates (over 77%).
Industries with the Lowest Retention Rates
Some industries show significantly lower retention, indicating that workers are more likely to leave those sectors after becoming permanent residents. Here are the figures:
| Industry | 1-Year Retention | 5-Year Retention |
|---|---|---|
| Management of companies and enterprises | 36.7% | 8.7% |
| Real estate, rental, and leasing | 46.2% | 19.4% |
| Other services | 45.5% | 20% |
| Admin support, waste management, and remediation | 54.3% | 21% |
| Agriculture, forestry, fishing, and hunting | 52.8% | 24.1% |
Key Points
Management of companies and enterprises has the lowest five-year retention rate, with only 8.7% remaining.
Real estate and support services also show low retention.
Overall Retention Rates
Average one-year retention across all industries: 68.4%
Average five-year retention across all industries: 43%
Impact of Work Permit Type on Retention Rates
Retention rates also vary depending on the type of work permit program
| Program | 5-Year Retention |
|---|---|
| High-skilled TFW Program | 53.4% |
| Intra-Company Transferees | 51.4% |
| Live-In Caregiver Program | 28.6% |
Key Points
High-skilled workers and intra-company transferees have the highest retention rates.
Participants in the Live-In Caregiver Program have the lowest, with less than 30% remaining in the same industry after five years.
Why Retention Rates Matter
Retention rates are critical because PR is often granted based on the applicant’s job or industry, and this directly impacts filling labor shortages in key sectors and regions.
Benefits of high retention rates
Greater efficiency for employers and workers (less time and cost for retraining)
Job stability in vital industries like healthcare and social services
Low retention may signal job dissatisfaction, poor working conditions, or low wages
Why Do Workers Switch Industries After PR?
Several factors may contribute
Wages: Workers may seek higher-paying jobs.
Working conditions: Poor conditions may prompt exits.
Job stability: Industries with seasonal or unstable work see higher attrition.
Skill growth: Some sectors offer fewer opportunities for advancement.
Conclusion
This study shows significant variation in retention across industries for TFWs who become permanent residents. Sectors like healthcare and utilities retain more workers, while management and real estate face bigger challenges.
To improve retention, employers and policymakers should focus on better work conditions, higher wages, and growth opportunities to maximize the value of immigrant labor.