Canada’s simultaneous expansion of high-skilled immigration and corporate artificial intelligence adoption is creating an unexamined bottleneck in labor market integration. As the federal government advances its AI for All strategy and continues to welcome newcomers who comprised 80 percent of labor force growth between 2016 and 2021, researchers warn that algorithmic hiring tools are increasingly determining whether immigrants achieve economic mobility. Scholars from the Bridging Divides initiative at Toronto Metropolitan University observe that while immigration policy focuses on selecting talent, digital recruitment systems now govern whether those credentials are recognized upon arrival. Despite advanced degrees and professional experience, nearly one-third of recent immigrants with post-secondary education work in roles below their qualification level, compared to fewer than one in five Canadian-born workers. This underemployment trend is accelerating alongside the proliferation of applicant tracking systems, automated screening platforms, and predictive analytics. Statistics Canada reports that business adoption of AI in recruitment has doubled over the past year, shifting hiring authority from human reviewers to opaque digital gatekeepers. Preliminary findings from the Toronto Metropolitan University study indicate that many applicants perceive these systems as unaccountable black boxes. Job seekers frequently report resume rejections despite meeting stated criteria, forcing candidates to optimize applications for machine readability rather than human assessment. The uncertainty of algorithmic filtering compounds traditional labor market barriers such as foreign credential recognition and demands for domestic work experience. Academic research, including studies from Cornell University and analyses by UCLA’s Safiya Noble, confirms that hiring algorithms often replicate historical biases, embedding discrimination under the guise of neutrality. The OECD Employment Outlook further cautions that AI-driven recruitment raises critical concerns regarding transparency, accountability, and equitable treatment for disadvantaged worker groups. Researchers emphasize that AI is not inherently discriminatory, nor should digital recruitment be abandoned. However, the misalignment between Canada’s immigration selection framework and its AI-driven hiring infrastructure risks undermining both economic competitiveness and social equity. As algorithmic systems transition from advisory tools to autonomous decision-makers, policymakers must ensure that recruitment technologies reinforce rather than obstruct the country’s demographic and innovation objectives. Aligning immigration strategy with AI governance will ultimately determine whether skilled newcomers can fully participate in Canada’s future economy.