Canada actively recruits highly educated and skilled immigrants through programs , yet many of these immigrants struggle to find work matching their skills and experience.
Authors
- Kingsley Ivande
PhD Candidate, Social Psychology, University of Victoria
- Stacey Fitzsimmons
Associate Professor of International Business, University of Victoria
Nearly one in three immigrants with a post-secondary education report that they are overqualified for their jobs. Statistics Canada data from 2024 and 2025 puts the figure at 33 per cent, compared with 19 per cent among Canadian-born workers.
Much of the discourse around this issue has focused, understandably, on why skilled immigrants end up in jobs below their qualifications. Their foreign credentials, skills and experience are often undervalued , particularly when they come from non-OECD countries, while employers tend to favour candidates with Canadian experience.
These are critical issues, and efforts to address them must continue. But less attention has been paid to why this mismatch is not only a problem for employees, but also for employers, and what employers can do when an overqualified immigrant is already on the job.
We are researchers in social psychology and international business who study migration, immigrant adaptation and economic mobility, as well as how organizations can better recognize and use the strengths of multicultural employees.
When overqualification goes unaddressed
For immigrants, being overqualified can affect well-being, job satisfaction and their sense of progress in their new country.
A four-year study of new immigrants in Canada found that those who were overqualified for their jobs were more likely to report declining mental health. Much of this relationship was associated with job dissatisfaction and with a sense that their position in Canada fell short of the professional status they had before migrating.
These effects may be particularly pronounced among immigrants who are strongly invested in integrating into and belonging to their new society.
Research in Germany found that immigrants who strongly identified with their host country experienced the sharpest drops in job satisfaction when they felt overqualified . For these workers, the mismatch may feel like a form of rejection or devaluation within their new society.
Why employers should care
The consequences can also extend to employers. Research on overqualified employees suggests their frustration with their jobs can reduce their willingness to go beyond their basic duties to help colleagues or contribute to the organization as a whole . This might include mentoring colleagues, volunteering for extra projects or suggesting ways to improve the organization.
There is also the risk of losing the employee altogether. Another study of overqualified employees found workers who felt highly overqualified were about four times more likely to leave their jobs . For employers, an unaddressed skills mismatch can therefore become a retention problem, bringing higher recruitment and retraining costs.
The problem can be difficult to spot because overqualification does not necessarily hurt performance. Employees may still be highly competent even when they are dissatisfied and considering leaving.
Research suggests overqualification can create both a sense of task mastery and a sense of relative deprivation at the same time . The work may feel easy because employees have more skills than their jobs require, supporting strong performance.
At the same time, they may feel frustrated that their qualifications and experience are not being fully used. This can lead to dissatisfaction, even when their performance remains strong.
What employers can do
Research suggests that employers can soften some of the negative effects of overqualification , such as lower job satisfaction and intentions to leave, by giving overqualified employees greater autonomy, opportunities to use their skills and a realistic path for advancement.
One study found that overqualified employees with little control over their work were more likely to withdraw or consider leaving . Greater autonomy gave them room to engage in “job crafting” – adjusting aspects of their work to make better use of their skills and take on more meaningful or challenging tasks.
It is also important for them to see a future path to advancement. A 2026 study found that overqualified employees responded more positively when they saw suitable opportunities for career advancement within their organization .
Managers cannot fix the broader systemic causes of immigrant overqualification like credential recognition, licensing requirements and wider labour-market barriers. But they can influence what happens once an overqualified immigrant is on the job.
Managing that mismatch well can help employers retain skilled workers while giving employees a greater opportunity to use the expertise they brought with them.
