Black populations accounted for the second-largest racialized group in the Canadian labour force in August 2025, reaching 1.2 million people or 5.4 per cent of the workforce, according to a new Statistics Canada analysis.
The majority (69.1 per cent) of Black individuals in the labour force were of core working age, between 25 and 54 years. However, employment outcomes for Black populations continue to lag behind those of the overall racialized and total Canadian populations.
In August, the employment rate for Black individuals aged 25 to 54 was 77.2 per cent, compared to 82.8 per cent for the total population in that age group. Unemployment rates were also higher among Black populations.
Using data from the 2021 Census of Population, Statistics Canada examined labour market outcomes for subgroups within the Black population, segmented by place of birth, immigrant and generational status, and non-permanent resident (NPR) status.
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Caribbean-born immigrants show stronger outcomes
Caribbean-born Black immigrants have historically played a key role in the Canadian labour market since the 1960s. In 2021, this group had higher employment and lower unemployment rates than other Black populations.
“The women’s employment rate (75.6 per cent) in 2021 and median annual employment income ($46,400) in 2020 were similar to those of the total Canadian women population,” Statistics Canada reported.
Caribbean-born Black immigrants also had a higher labour force participation rate and a lower unemployment rate than other Black populations.
African-born immigrants face overqualification despite higher education
Among core working-age Black immigrants, those born in Africa represented the largest share (39.1 per cent) in 2021, with more than half having arrived between 2011 and 2021. This group also had the highest education levels, with 46.1 per cent holding a bachelor’s degree or higher, compared to 37.5 per cent of all Black populations.
Despite their educational attainment, many African-born immigrants experienced overqualification in the labour market.
“The overqualification rate was nearly twice higher for people who completed their degree outside Canada (35.2 per cent) than for those who completed it inside Canada (17.7 per cent),” the agency stated.
Second-generation Black women fare better than men
While Black women generally had lower employment outcomes than Black men in 2021, second-generation Black women were a notable exception.
“Second-generation Black women had a higher employment rate than their men counterparts (72.9 per cent compared with 72.1 per cent) and a lower unemployment rate (12.6 per cent compared with 14.3 per cent),” Statistics Canada said.
In terms of income, this group also showed a smaller gender gap, with a difference of $1,200 in 2020.
Outcomes lower for third-generation or more
Black populations of the third generation or more—which includes historic Black communities and descendants of immigrants—had poorer labour market outcomes in 2021 compared to the broader Black population.
Their participation rate was 76.9 per cent, and their employment rate was 64.8 per cent. The unemployment rate stood at 15.7 per cent, and median annual employment income was $43,200 in 2020.
“Third generation-or-more Black women faced poorer outcomes than their men counterparts for all these indicators,” the agency said.
Non-permanent residents face income challenges despite high employment
Black non-permanent residents (NPRs), including asylum claimants and work permit holders, had distinct labour market outcomes. In 2021, their employment rate was 76.2 per cent, with an unemployment rate of 10.8 per cent.
Although NPRs had the highest share of degree holders (49.6 per cent), they also faced the highest overqualification rate at 50.8 per cent. Their median annual employment income was $28,200 in 2020, below other Black population groups.
“Labour market outcomes differed across NPR types and were superior overall for Black NPRs with work permits compared with Black asylum claimants,” Statistics Canada noted.
Overqualification was particularly stark among asylum claimants, who were more than twice as likely to be overqualified (73.7 per cent) compared to work permit holders (29.8 per cent).
Statistics Canada said the findings reflect the diversity of the Black population in Canada and noted the potential for further disaggregation of labour market data across subgroups.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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