Racism that permeates society better known as systemic and institutionalized racism frequently contributes to homelessness within racialized communities. Disproportionate rates of imprisonment, higher dropout rates for education, barriers to employment and denial and discrimination when seeking government assistance all lead to underprivileged peoples becoming homeless from racialized communities in Canada.

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The rate of full-time employment for racialized Canadians is lower than the Canadian average and income levels are also lower. Access to higher level meaningful jobs are more difficult for people from racialized communities. Labor market statistics show that people from these groups are disproportionately exposed to contract, temporary, part-time, and shift work with poor job security, low wages and benefits.

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Recent immigrants many of whom are from racialized communities continue to experience declining earnings and employment outcomes, in the Canadian workplace, despite educational credentials that have been higher on average than those of native-born Canadians. This suggests that some hiring practices may be subject to institutional racism, operating with procedures that exclude groups not because of their skill level but simply because of their race.

Limited employment, limits financial flexibility, nourished poverty and creates homelessness and hopelessness.

It is important that shelters are prepared to adapt to the diversity of needs of racialized communities including food/nutrition (varied diet, prohibitions of types of food or methods of preparation), options for religious accommodation and creating safe spaces and cultural awareness/acceptance.