Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
News

Tech’s COVID-19 layoffs have outsized impact on racialized, immigrant workers: Survey

Racialized and immigrant workers were disproportionately likely to be affected by the pandemic-inducted layoffs at Canadian startups, according to a new report from hiring platform Prospect.

Black, Indigenous and people of colour were already underrepresented in the sector before COVID-19 struck, and the cuts of recent months could exacerbate that shortfall. But tech executives say some companies are paying more attention to the composition of their workforce as they rehire or look to grow in the post-pandemic recovery. 

News

Tech’s COVID-19 layoffs have outsized impact on racialized, immigrant workers: Survey

By Murad Hemmadi
Oct 14, 2020
A A
A Small A Medium A Large
Share

Gift

Share

Racialized and immigrant workers were disproportionately likely to be affected by the pandemic-inducted layoffs at Canadian startups, according to a new report from hiring platform Prospect.

Black, Indigenous and people of colour were already underrepresented in the sector before COVID-19 struck, and the cuts of recent months could exacerbate that shortfall. But tech executives say some companies are paying more attention to the composition of their workforce as they rehire or look to grow in the post-pandemic recovery. 

Talking Point

Black, Indigenous and people of colour are underrepresented in the startup workforce, but overrepresented among those laid off or unemployed as a result of the COVID-19 pandemic, per a new report from hiring platform Prospect. But tech executives say an increasing number of firms are focusing on diversity as they rehire or grow.  

Prospect and Feminuity, an inclusion-consulting firm, surveyed workers who were unemployed or lost tech-sector jobs during the pandemic. Just over three-fifths of respondents (61 per cent) identified as racialized, and more than half said they were first-generation immigrants to Canada.  

The results show there are “critical flaws in how we are approaching inclusion in our workforce if those that are most underrepresented in [the tech sector] were disproportionately impacted,” said Prospect CEO Marianne Bulger in an interview with The Logic.

More than a fifth (22.0 per cent) of the unemployed workers who answered Prospect’s survey identified as South Asian; Chinese (10.4 per cent), Southeast Asian (8.2 per cent), Black (5.5 per cent) and Arab (7.0 per cent) respondents were also significantly represented. Indian immigrants (21.4 per cent) were most common among the non-Canadian-born, followed by arrivals from the U.K., China and the U.S. 

Members of visible-minority groups make up 31.4 per cent of tech workers and immigrants 37.5 per cent, according to a January 2019 study by Ryerson University’s Brookfield Institute for Innovation and Entrepreneurship. The Prospect and Brookfield figures aren’t directly comparable, since the Help List includes people working in non-engineering and -development positions at startups such as marketing and HR. 

Junior- and intermediate-level workers have been most likely to lose their jobs in pandemic layoffs, noted Avery Francis, founder and CEO of Toronto-based recruitment agency Bloom. “There’s less representation in senior levels,” especially director and C-suite roles, she said. “That’s why we’re seeing this heavily weighted impact on folks from marginalized and underrepresented communities.” 

The pandemic has similarly disproportionately affected racialized workers in the wider economy. Statistics Canada’s July Labour Force Survey (LFS)—the first to collect data on visible minorities—found that the unemployment rate for white people had increased the least year over year of any demographic group, up 4.4 percentage points. South Asian (9.1 percentage points), Chinese (8.4 percentage points) and Black (6.3 percentage points) workers were much more likely to have lost their jobs. 

“We’re anecdotally hearing that [furloughs and layoffs are] disproportionately impacting Black tech professionals,” said Lekan Olawoye, founder of the Black Professionals in Tech Network (BPTN)—particularly since such workers are already underrepresented in the wider innovation-economy workforce. In August, the group published a survey in which nearly 65 per cent of respondents said COVID-19 had affected their employment or work life. 

There’s also been a toll on mental health. “Black professionals are not only taking care of themselves, but actually have to take care of extended family,” said Olawoye, noting that Black workers tend to be overrepresented in the frontline occupations that bore the brunt of pandemic job losses.

Employment among core innovation-economy workers like software developers, engineers, and life-science professionals has rebounded after a small drop at the beginning of the pandemic. More than 1.08 million people were employed in professional occupations in the natural and applied sciences in September, according to the LFS—the fourth consecutive month of record highs. Employment is now 7.6 per cent higher than it was in February, while the wider workforce is still 1.86 per cent below pre-pandemic levels. (StatCan occupational figures are unadjusted for seasonality).

Plenty of Canadian tech firms have continued to hire, particularly those in businesses that have seen pandemic-related increases in demand such as telehealth, e-learning and biotech. Bulger said many of the respondents to Prospect’s survey have since found new work, and postings on the platform have picked up. “We are starting to see that recovery,” she said, although she noted there may be more startup layoffs as government COVID-19 support measures end.

The recovery may also include more racialized workers. Bloom and BPTN have heard from an increasing number of companies interested in ensuring representation in the hiring process in the wake of this summer’s Black Lives Matter demonstrations, after a Minneapolis police officer killed resident George Floyd in May. 

“For organizations that are in a position to hire and are growing, they’re being really intentional about who they hire,” Francis said. Bloom works with organizations to make their recruitment processes more equitable and inclusive, for example by using tools to review role descriptions for biased language and remove identity-revealing information from resumes. 

Gift the full article

In March, the pandemic looked set to have “a devastating impact on diversity in the workforce,” Olawoye said. But while representation has suffered, “there’s a realization that companies cannot afford to take a step back—they will lose long term.” Progressive firms are “thinking about how to ensure that there is representation in their rehiring process,” he said.

The Prospect survey had 350 respondents; about 3,600 people have added their names to the Help List, a database of tech workers laid off during the pandemic that the company helped launch. Bulger called for the federal government to conduct a wider study of the pandemic’s disproportionate impacts on different demographic groups in the tech sector.    

#COVID-19 #Prospect.fyi

Sponsored Content

The real-world economic offshoots of sovereign AI

By Deborah Aarts
Illustration of a plane flying above a mailbox

Increasing healthcare access across Canada

By Deborah Aarts

What it takes to lead a frontier firm

By Deborah Aarts
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

Most Popular This Week

Janice Charette and Dominic LeBlanc walking toward the camera next to a white pavilion that bears the logo of the 2026 G7 meeting in France.
News

Canada ‘can’t even talk about anything else’ if Trump makes good on latest tariff threat

By Joanna Smith
A man walks across a large greenhouse with large glass ceilings. He is walking on a white path through rows of green lettuce growing on the ground.
News

Canadian businesses were bracing for a wave of retirees. Then along came AI

By Anita Balakrishnan
An image of a man wearing a dark suit jacket and tie. He is wearing a mic and looking slightly away from the camera.
News

Brookfield and Cohere execs among high-profile guests at CVCA summit

By Catherine McIntyre
In this photo illustration the Moneris logo is seen displayed on a smartphone.
News

U.S. private equity is buying Canada’s biggest payments processor. Some people are worried about sovereignty

By Claire Brownell

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

A shot of a construction worker seen through the door opening of a newly framed wall. The wall is being constructed in a factory setting.
News

‘Lego’ homes or housing solution? Canadians are split on modular housing

By Laura Osman

Briefing

Dominion Dynamics is pitching to take over an idled Stellantis plant

By Anita Balakrishnan   |   Aug 19, 2026 | 3:52 PM ET

Three Canadian cities crack top 10 list of North American tech hubs

By Catherine McIntyre   |   Aug 19, 2026 | 3:03 PM ET

Moderna and Merck report promising trial results for mRNA-based melanoma vaccine

By Catherine McIntyre   |   Aug 19, 2026 | 3:01 PM ET

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

News

U.S. private equity is buying Canada’s biggest payments processor. Some people are worried about sovereignty

By Claire Brownell   |   Aug 12, 2026
In this photo illustration the Moneris logo is seen displayed on a smartphone.
News

Brookfield and Cohere execs among high-profile guests at CVCA summit

By Catherine McIntyre   |   Aug 13, 2026
An image of a man wearing a dark suit jacket and tie. He is wearing a mic and looking slightly away from the camera.
News

Canadian businesses were bracing for a wave of retirees. Then along came AI

By Anita Balakrishnan   |   Aug 13, 2026
A man walks across a large greenhouse with large glass ceilings. He is walking on a white path through rows of green lettuce growing on the ground.
Special Report

Meet Canada’s leading innovators from the Class of 2026

By Sara Harowitz   |   Jul 29, 2026
A multimedia illustration showing images of six smiling individuals, on a dark background with blue shapes.
Commentary

Carmichael: Canada’s biggest companies aren’t wired for growth. That’s a problem for us all

By Kevin Carmichael   |   Aug 15, 2026
News

The Fisheries Department is losing its ability to back maritime innovations, documents warn

By David Reevely   |   Aug 11, 2026
A wide-lens aerial shot of a red Canadian Coast Guard ship amid a sea of white ice pans. The effect of the lens exaggerates the curvature of the horizon.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account