This paper compares the labor market position of women from religious minority backgrounds with that of the majority group of Christian White Canadian women. In particular, it examines the relative disadvantage of Muslim women in relation to labor market participation, unemployment rate and the likelihood of obtaining managerial and professional occupations. The analysis was carried out using data obtained from the 2011 Canadian National Household Survey (NHS). The results suggested that, relative to White Christian women, most ethno-religious groups were significantly disadvantaged in the Canadian labor market, especially in relation to participation and unemployment. However, the pattern that was found in relation to occupational attainment was different and worth discussing. Not all Muslim women seemed to be disadvantaged in obtaining managerial and professional jobs. Black and Arab Muslim women, surprisingly enough, were as likely as the majority, Christian White women to be represented within the category of managers and professionals. This paper considers cultural explanations and the role of discrimination and a human capital deficit, as well as suggesting new directions by proposing the hypothesis of 'discouraged women', in explaining the low rate of participation, and a 'surplus education' hypothesis to explain occupational attainment. However, by and large, structural inequality, fostered by cultural racism and that based on color, remains the most plausible explanation.

Studies on labour-market disadvantages of ethnic and visible minorities in Canada have focused, primarily, on earning differentials leaving other important socioeconomic indicators such as employment and occupational distribution insufficiently examined. These studies have rarely included religion as one of the explanatory variables, despite the presence of sizable religious communities and considerable religious diversity in Canada. Given the rise in anti-Muslim sentiment and the increase in Islamophobia, religion becomes an important factor. In this study, we argue that the Canadian labour market excludes/includes individuals based on their physical visibility and religious affiliation. We analyse data obtained from the Canadian 2011 National Household Survey. The analysis supports the existence of a hierarchy of labour market outcomes predicated on both visibility and religious affiliation. It is suggested that the existing labour market inequality among the various ethno-religious groups is shaped largely by physical visibility and cultural proximity to the dominant group. The results provide evidence for a ‘Muslim penalty’.