From Newcomers to Game Changers: Immigrant Skills Utilization in the Hospitality Sector
Canada’s accommodation and food services sector—which we refer to as hospitality, faces a growing labour shortage that threatens an industry that is critical to the country’s economy. Almost half of Canadian tourism revenue (42 per cent) is generated by hospitality, representing $124 billion in 2023 alone.
This issue briefing aims to identify targeted solutions that support immigrant talent development and skill utilization in the hospitality sector. Drawing on Labour Force Survey data from 2022 to 2024, we examined how well immigrants’ skills are utilized in the hospitality sector.
Key insights
Overeducation—having more education than required for a job—is the most pronounced type of skill underutilization in hospitality. However, immigrants experience this challenge at 1.4 times the rate seen for Canadian-born workers.
International students have been the primary source of foreign labour in hospitality since 2015. But 2024 caps on study permits are impacting the labour supply, with some hospitality programs scaling back due to insufficient enrollment.
Low proficiency in Canada’s official languages can overshadow immigrants’ technical skills and competencies in hospitality roles. Some employers are addressing this by translating onboarding materials and incorporating hands-on skill demonstrations into their hiring processes.
More from FSC
Testing Innovative AI for Career and Skills Navigation
BOLD: Better Outcomes for Laid Off Displaced Workers
Amped Up: Upskilling Canada’s Heavy Duty Vehicle Mechanics to Support the Transition to Electric School Buses
Have questions about our work? Do you need access to a report in English or French? Please contact communications@fsc-ccf.ca.