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

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

News

Bay Street backs Canada’s AI strategy, but warns the devil is in the details

By Anita Balakrishnan and Chaimae Chouiekh
A diptych showing Mark Carney on the left, and CIBC CEO Harry Culham on the right.
News

Diversifying trade requires banks to take bigger risks, official advised Carney before CIBC meeting

By Joanna Smith
The image shows the inside of Toronto Stadium on a sunny day. The rows of seats are empty; an empty green field is visible.
News

Toronto and Vancouver aren’t getting a World Cup bookings boom

By Chaimae Chouiekh
A yellow ambulance is pictured outside of a hospital in Montreal. A red sign in the foreground reads, “Urgence / Emergency.”
Commentary: Quebec Ink

Quebec just found out what not having digital sovereignty really means

By Martin Patriquin

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

Evan Solomon in a suit and tie, gesturing with his left hand as he speaks, Several people sit and stand behind him looking in other directions. There's an orange curtain behind him lit from above.
News

Canadians could demand firms delete their personal data under new privacy bill

By Laura Osman

Briefing

IPOs need to be easier for startups if Canada wants 1,000 Shopifys, Champagne says

By Anita Balakrishnan   |   Jun 15, 2026 | 3:05 PM ET

Nuvei to acquire cross-border payments company Payoneer for US$2.75B

By Claire Brownell   |   Jun 15, 2026 | 3:01 PM ET

Joly to visit carmakers on 10-day trip to China and Japan

By David Reevely   |   Jun 15, 2026 | 2:59 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

Commentary: Quebec Ink

Quebec just found out what not having digital sovereignty really means

By Martin Patriquin   |   Jun 8, 2026
A yellow ambulance is pictured outside of a hospital in Montreal. A red sign in the foreground reads, “Urgence / Emergency.”
News

OMERS investment chief departs for Singapore’s Temasek

By Chaimae Chouiekh   |   Jun 10, 2026
News

Diversifying trade requires banks to take bigger risks, official advised Carney before CIBC meeting

By Joanna Smith   |   Jun 9, 2026
A diptych showing Mark Carney on the left, and CIBC CEO Harry Culham on the right.
News

Canada’s surprise plan to buy Saab command jets leaves competitors seeking answers

By David Reevely   |   May 29, 2026
A closeup of a scale model of a jet covered in pixellated camouflage, with sensor equipment attached to the top of its fuselage. There are civilians and uniformed military personnel milling in the background.
The Big Read

We found every data centre in Canada

By Murad Hemmadi, David Reevely, Aleksandra Sagan, Chaimae Chouiekh, Martin Patriquin and Catherine McIntyre   |   Apr 8, 2026
Four vertical slices of aerial view photos. From left, a building in downtown Toronto housing several data centres, a picture of the Albertan wilderness where the proposed Wonder Valley data centre would go, a lit-up QScale data centre in Quebec, and a data centre at a Hydro-Quebec dam.
News

Toronto and Vancouver aren’t getting a World Cup bookings boom

By Chaimae Chouiekh   |   Jun 8, 2026
The image shows the inside of Toronto Stadium on a sunny day. The rows of seats are empty; an empty green field is visible.

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