Why immigrants are set to really have a future that is bright Canada’s labour market

Canada’s population that is aging set to benefit Canadian-born and immigrant employees alike.

This could seem strange offered the coronavirus pandemic at first glance.

Nevertheless there clearly was little doubt the labour market would recover provided the major demographic shifts that were transforming Canada’s workforce ahead of the pandemic, and which will continue steadily to change it within the decade that is next.

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From an immigration policy perspective, one of the primary issues is how a recession shall impact the labour market performance of immigrants whom get permanent residence during durations of economic depression. Research shows that such immigrants often see their labour market outcomes negatively affected for the remainder of the jobs in Canada.

That is alarming in light for the surprise that is major the Canadian economy in the very beginning of the pandemic and Canada seeking to welcome the highest degrees of immigration in its history.

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However a better look implies that the COVID recession is significantly diffent, and immigrants that have recently landed or who will be landing in the future are still poised for a bright future in the labour market that is canadian.

More employees which can be Canadian

The reason that is first this is actually the exodus of baby boomers from Canada’s workforce. This exodus assists explain why Canada enjoyed its unemployment price that is lowest ever ahead of the COVID recession, and it has accomplished another historic low in the jobless price despite the pandemic continuing to influence the Canadian and global economy.

Canada has about 20 million workers, of who about 9 million are baby boomers. All 9 million among these middle-agers will reach Canada’s retirement of 65 in the decade that is next. More of them are retiring which can be making a more substantial gap in the labour market. Historically, Canada happens to be able to completely replace retirees with young graduates which are canadian their training and entering the workforce but this really is no longer the case. Canada’s birth that is low means it should count on other sourced elements of talent to displace its retiring workers.

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Changing employees which can be retiring essential to keep the economy going and make sure the tax base is large enough to guide the services that residents of Canada are able to benefit from such as training and medical care. This really is much more essential since the aging of the population will see medical care spending rise that is canada’s.

Other talent sources include under-utilized teams such as women, individuals with disabilities, older employees, native individuals, and youth that is disengaged among other teams. But including more of them towards the labour market will never fully make up for the retirees even though we lifted their employment participation rates towards the average that is nationwide.

Canada Immigration Global

This explains why immigration is really imperative to Canada’s success that is economic. Ahead of the pandemic, they comprised up to 100% of Canada’s yearly labour force development for a few occasions, and this can be the norm on the decade that is next.

With so experience that is much skill leaving the labour market, Canadian employers will need to move to all of the talent sources they could find to keep their operations going, that is exactly the phenomenon our company is seeing now. The aging of the labour that is canadian is seeing the jobless price autumn and wages increase, a occurrence that is benefiting Canadian and immigrant employees alike. What we’re seeing now’s more likely to continue as more infant boomers retire.

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We ought to additionally make note associated with immigration that is major changes over the past ten years being additionally having an impact in the labour market outcomes of newcomers.

More selection process that is competitive

One may be the shift up to a more selection that is competitive for skilled immigrants. The federal government that is federal provinces and regions have changed their selection requirements in the last few years to account fully for individual money facets demonstrated by research to effect a result of stronger economic results for immigrants. Under the Express Entry Comprehensive Ranking System (CRS) for example, prospects that are young, well-educated, fluent in English and/or French, with expert work experience, along with other bonuses such as having Canadian education and/or work experience, are awarded a greater CRS rating which increases their odds of acquiring permanent residence and finally succeeding in the labour market that is canadian.

More immigrants selected from within Canada

Another shift that is major been the increasing amount of permanent residents chosen from within Canada. Prior to the pandemic, immigrants offshore comprised some 70% of the whom landed under Express Entry but 12 months that is final figure fell to 30per cent with Immigration, Refugees and Citizenship Canada (IRCC) relying more on in-Canada candidates to reach its immigration levels targets amid pandemic-related disruptions such as travel restrictions. It continues to be to be seen whether IRCC will rely more on identifying immigrants overseas or in Canada after the pandemic, we do know Immigration Minister Sean Fraser’s mandate letter asks him to spot more immigration pathways for in-Canada candidates. In addition, provinces and territories are increasingly selecting more prospects which can be in-Canada the Provincial Nominee Program (PNP) and other channels.

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The in-Canada selection trend normally supported by Canadian federal government research which ultimately shows that former international pupils and temporary international workers benefit within the labour market from their Canadian experience once they gain residence that is permanent.

More federal government that is Canadian to simply help newcomers

A third consideration that is major IRCC’s increased investment in immigrant settlement services such as workforce and language training. IRCC now spends some $2 billion per on such services compared to about $350 million each year twenty years ago 12 months. These services will also be delivered pre-arrival to provide immigrants information that pays to supports to help expedite the settlement procedure once they arrive in Canada.


When all of these facets are considered, one is able to better feel comfortable that the recession that is COVID-induced bring about less labour market scarring for newcomers than prior recessions. Set alongside the past, Canada possesses labour that is historically tight, a more competitive selection process, is selecting more immigrant applicants from in the nation, and it is investing more income to greatly help immigrants succeed.