March 2, 2023

Immigrants to Canada have better employment rates than people born in Canada

Canada has set a target to receive around 1.45 million immigrants within the next three years, and it is expected that 60% of them will be admitted through economic class programs.

The influx of immigrants is expected to bring several benefits to Canada's economy and society.

One significant advantage is that recent immigrants have higher employment rates than those born in Canada. This is due to two factors: the rise in the employment rate of new immigrants since 2016 and the gradual decrease in the employment rate of Canadian-born individuals.

This phenomenon is influenced by the age and qualifications of each group. Recent immigrants, who are frequently chosen based on their human capital characteristics that make them suitable for Canada's workforce, are typically in the prime working age range of 25 to 54. Meanwhile, Canada's population is aging, with a significant number of retirees leaving the workforce each year, which is a primary driver of immigration. Therefore, the broader implications of immigration on the economy are important to consider.

The arrival of new immigrants will alter Canada's demographic standards.

Immigration plays a critical role in Canada's population growth, with most newcomers being of core working age and primarily selected based on their economic value. As a result of the significant number of immigrants expected to arrive in the near future, Canada's population is predicted to become much younger.

At present, the median age of Canadians is 41 years old, with retired individuals leaving the workforce annually. The anticipated influx of working-age immigrants will not only benefit Canada by increasing its population to sustainable levels, such as a birth rate of two children per household, but it will also provide various economic advantages to the country.

The potential for GDP growth is anticipated to increase with the arrival of new immigrants.

New immigrants are highly connected to the labor force, and many of them have employment opportunities even before they arrive in Canada, selected based on their human capital characteristics that enable them to make meaningful contributions to the workforce.

As a result, immigration is anticipated to increase Canada's GDP (Gross Domestic Product) per capita by increasing labor input. GDP is the total value of all goods and services produced within a country's borders. An increase in GDP is typically an indication of a robust economy, which can lead to other benefits like higher wages and employment. The arrival of newcomers is predicted to strengthen the supply-side economy even further and alleviate inflationary pressures on the Canadian economy.

Is Canada capable of managing this influx of new immigrants?

Every decade, there is a rise in unemployment among new immigrants, but it eventually decreases. However, it can be challenging for newly arrived immigrants to find work and establish themselves in the Canadian job market. This has raised concerns about whether Canada is ready to handle the significant influx of immigrants expected in the next three years.

Despite these concerns, there are indications that new immigrants will have a positive impact on the labor market. Currently,job vacancies are at a record high and double the rate during the pandemic. The tight labor market is one of the main reasons for Canada's ambitious immigration targets. Additionally, with an aging population retiring each year, newcomers with valuable skills and human capital are expected to have favorable outcomes in the labor market.

To Summarize:

Canada's plans for immigration are predicted to bring positive impacts on the country's society and economy. The COVID-19 pandemic has highlighted a greater need for immigrants in Canada, and both newcomers and Canadians have reasons to expect favorable results with the anticipated influx of immigrants in the next three years. It is one of the best times to look for an Immigration pathway that suits your profile. Get in touch with us and learn about your shortlisted Immigration pathway to Canada by scheduling a free consultation with us!