Skilled Immigrants to Benefit from Retiring Canadian Population

One of the most pressing problems in terms of immigration policy is how a recession would affect the labour market performance of immigrants who receive permanent residency during times of economic crisis. Given the massive demographic trends that were reshaping Canada's workforce before the pandemic, and that would continue to reshape it over the next decade, there was little doubt the labour market would recover. According to research, such immigrants' labour market results may be harmed throughout the remainder of their careers in Canada.

   

More Canadian workers retiring

 

With so much expertise and skill exiting the labour market, Canadian firms will need to tap into all talent sources available to keep their businesses afloat, which is exactly what we're witnessing now.

 

Replacing retiring employees is critical to maintaining the economy and ensuring that the tax base is big enough to provide services that Canadians can access, such as education and health care. This migration explains why, before the COVID crisis, Canada had its lowest jobless rate ever, and why, despite the pandemic's continued impact on the Canadian and world economies, the unemployment rate has reached another historic low. As the Canadian workforce ages, the unemployment rate rises.

 

Women, individuals with disabilities, elderly employees, Indigenous peoples, and distracted teenagers are just a few examples of underutilised talent sources.

The ageing of the Canadian workforce is resulting in lower unemployment and higher pay, which benefits both Canadian and foreign employees.

 

Roughly 20 million people work in Canada, with about 9 million of them being baby boomers. Because of Canada's low birth rate, it will have to rely on other sources of talent to replace retiring workers.

 

We should also consider the dramatic developments in immigration policy over the last decade, which have had an influence on immigrant labour market results.

 

Selection method that is more competitive

The change to a more competitive selection procedure for skilled immigrants is one example. In recent years, the federal government, as well as provinces and territories, have changed their selection criteria to account for human capital qualities that have been shown in studies to result in better economic results for immigrants. Candidates who are young, well-educated, fluent in English and/or French, have professional work experience, and other bonuses such as having Canadian education and/or work experience are given a higher CRS score under the Express Entry Comprehensive Ranking System (CRS), which increases their chances of obtaining permanent residence and ultimately succeeding in the Canadian labour market.

 

More immigrants from within Canada were chosen.

 

Another significant change has been the rise in the number of permanent residents chosen from within Canada.

 

Prior to the pandemic, immigrants from other countries accounted for roughly 70% of those who landed under Express Entry, but that number dropped to 30% last year, with Immigration, Refugees and Citizenship Canada (IRCC) relying more on in-Canada candidates to meet its immigration targets amid pandemic-related disruptions like travel restrictions.

 

It's unclear if IRCC would prioritise picking immigrants from outside of Canada or inside Canada after the epidemic, but we do know that Immigration Minister Sean Fraser's mandate letter directs him to develop new in-Canada immigration paths.

 

Furthermore, provinces and territories are increasingly using the Provincial Nominee Program (PNP) and other streams to pick more candidates from within Canada.

 

More money from the Canadian government to assist immigrants

 

The IRCC's increasing investment in immigrant settlement programmes such as workforce and language training is a third significant factor to consider. IRCC currently spends almost $2 billion each year on such services, up from around $350 million twenty years ago. These services are also provided prior to arrival to provide immigrants with relevant information and support to help them settle into Canada more quickly.

 

Conclusion

When all of these considerations are taken into account, one may be more certain that the COVID-induced recession will leave immigrants with less labour market scarring than in previous recessions. Canada has a historically tight labour market, a more competitive selection process, selects more immigrant candidates from inside the nation, and spends more money to assist immigrants to thrive than in the past.

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