Overqualified and Underrepresented: The Economic Reality for Black Women in Canada

Category
Author
CCFWE
Publish Date
February 27, 2026

By: Julia Vellucci, CCFWE Social Justice Writer

 

Black women are among the most educated groups in Canada, yet they remain among the most economically vulnerable.

 

Canada’s 2023 Employment Equity Report reveals a striking pattern worth examining as  Canada reflects on Black history and looks ahead to International Women’s Day. This pattern highlights the need to fix the systemic barriers that prevent Black women from fully benefiting from their education and hard work.

 

The report stated that from 2001 to 2016, the employment rate of Black women aged 25 to 59 remained stagnant at 71 per cent, while employment rates for non-Black women in the same age group increased from 72 to 75 per cent. Meanwhile, in this same period, the gap in median annual wages between Black workers and the rest of the working-age population widened. This was largely because wages for Black workers did not grow at the same pace as those of other workers.

 

Employed Black women faced many challenges when it came to advancing their career as the pathways were limited. They also remain underrepresented in management occupations compared to non-visible minority women. This restricts access to higher-paying leadership roles and decision-making positions.

 

The Black population faces a significant challenge of overqualification.16 per cent of Black workers with a bachelor’s degree or higher from a Canadian institution work in occupations that require a high school diploma or less. This is the highest overqualification rate of any Canadian-educated racialized group.

 

The average for the Canadian-educated population was 11.1 per cent. This rate is similar across generations: first-generation Black workers were overqualified at 15.8 per cent, second-generation were overqualified at 16.6 per cent and third-generation or more were overqualified at 15.7 per cent.

 

Statistics Canada reported that Black workers are more likely than others to report experiencing discrimination or unfair treatment in the workplace.

 

Additionally, a York University survey from 2023 noted that 47 per cent of Black participants believed they have been treated unfairly by an employer in hiring and pay or promotion in the last year, compared to 15 per cent of non-Black Canadians.

 

The State of Economic Abuse Report by The Canadian Center for Women’s Empowerment (CCFWE) stated that Black women have higher odds of experiencing economic abuse and intimate partner violence than white women.

 

The report emphasized that securing or keeping a job becomes especially challenging for survivors of economic abuse when they are burdened by high childcare expenses. These difficulties are intensified for Black and Indigenous women, who are more likely to live in so-called “childcare deserts”. This refers to areas with limited access to affordable childcare which they also experience some of the highest rates of working poverty in Canada.

 

Canada’s 2023 Employment Equity Report referred to a USA-based study, led by psychologist Dr. Kecia Thomas, who documented how Black women professionals often received early mentorship support. At times, this support was from white men in supervisor positions which these women encountered resistance or hostility as they advanced in their careers. Dr. Thomas described this shift as moving from “pet to threat”, a dynamic that showed how competence and confidence can be viewed as threatening within inequitable systems.

 

Although this research was conducted south of the border, its findings are still relevant to the Canadian context, as the pattern suggests that the challenge is not one of ambition, education, or effort but instead systems structure.

 

Meseret Haileyesus, CEO of CCFWE, said in a February 2025 CCFWE article, that the intersection of systemic racism and economic abuse creates profound barriers for Black women, leaving many trapped in cycles of financial hardship and vulnerability.

 

“At CCFWE, we recognize that financial security is a critical component of overall well-being, yet Black survivors of economic abuse remain largely invisible in research, policy and service provision. Without targeted interventions, Black women will continue to be disproportionately impacted by financial exclusion, workplace discrimination and limited access to equitable financial resources,” Haileyesus said.

 

“It’s time to address these gaps with culturally responsive solutions that empower and uplift Black communities,” she said.

 

This evidence shows a troubling reality, one where Black women are investing in higher education at remarkable rates, yet remain more likely to be overqualified, economically stalled and underrepresented in leadership.

 

True equity means more than just access to degrees. It means access to opportunity, advancement and fair compensation. Until those gaps close, the promise of education as a pathway to economic security will remain uneven, especially for Black women.

 

Yet, there is reason for hope. The Canadian Association for Supported Employment said that in 2021, Canada’s Black population reached 1.5 million, continues to grow and is expected to reach over 3 million by 2041. With a growing, educated population and continued advocacy for equitable employment, the future holds the potential for greater representation, opportunity, and fair economic outcomes for Black women across the country.

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