According to the latest report, economists encourage inviting new skilled immigrants to Canada. The Desjardins Economic Studies report displays the advantages of inviting skilled newcomers to the country. Furthermore, the report claims that Canada must continue to invite new immigrants who can bridge the labor shortages in the construction sector. However, we must keep in mind the obstacles preventing employees from contributing to their complete potential. Specifically, the country must work toward reducing discrimination in the construction sector.
This suggestion is critical due to the current housing affordability crisis, which partially results from the lack of supply to support the increasing demands of the fast-growing population.
In the 2023 third quarter, Statistics Canada data demonstrated the Canadian population peaked at 40,528,396 individuals. This displayed a rise of 430,635 over the last quarter and more than 500,000 after reaching a record-high of 400,000,000 in June last year (2023).
The difficulties that come along with the maintenance of Canada’s housing affordability are far more evident. Per the Canada Mortgage and Housing Corporation, Canada must meet the requirement of 3.5 million units. This is besides what is already on the radar to assist Canada’s existing population growth.
Meanwhile, the latest Canadian Real Estate Association depicts that the average cost of a Canadian house is $657,145. This stands true as of December 2023. However, it is more in thickly populated cities, including Vancouver and Toronto, where the houses cost more than a million.
Economists encourage inviting new skilled immigrants to Canada – Lesser Non-Permanent Residents work in the Construction Sector
The Desjardins report estimates that among the chief 20 employment industries in Canada, the construction sector comes in the 15th position. Additionally, the report derived its data from the Census 2021. This report found that non-permanent residents and newcomers contributed less than 22 percent of the country’s workforce in the construction sector.
This further claims that there has been little growth since the same data collection in 2019. Moreover, it was evident that 21 percent of newcomers worked in the construction sector.
Additionally, the latest Bank of Canada found that only five percent of employed NPRs, or 3 percent of the total NPRs, fall under construction as their primary job. This indicates that NPRs are a rapidly growing section of the population. However, they are not employed in construction occupations.
Productivity and cost are also imminent factors
According to the report, enhanced immigration is not the only aspect responsible for the housing crisis. For instance, the building material expenditure is at a ten-year high. This has worsened the supply-chain disruptions during the pandemic and currently affects the high interest rates.
In addition, CMHC states that increased costs will lead 40 percent of residential developers to decrease their future projects. Meanwhile, more than 30 percent of new projects will take a back seat.
Reduced productivity also impacts the housing sector. According to Desjardins, this sector’s productivity is decreasing, and it has offered suggestions for increasing production to fulfill demands. One of the chief suggestions is to develop pre-accepted building plans. Sean Fraser, the Housing Minister, has also suggested this strategy.
Increasing Strategic Immigration
Lastly, Desjardins’s report suggests that Canada must significantly welcome new immigrants to the construction sector. Notably, in 2022, only 455 new permanent residents acquired PR through the Federal Skilled Trades Program. However, in 2023, Express Entry draws for the FSTP candidates did not take place.
The Royal Bank of Canada’s report claimed that Canada must prove to be more strategic in choosing newcomers and temporary residents who attain the status of future immigrants. These immigrants are those who possess robust long-term economic prospects, including those outside immensely educated sectors.
According to IRCC, it will work toward inviting skilled new immigrants to support sectors already facing a labor shortage crisis. In May 2023, IRCC launched Express Entry category-based draws with a human capital characteristic or in-demand occupation in Canada. The chief category is for those in trade occupations. However, IRCC held only two draws welcoming these candidates by sending 2,500 invitations to Express Entry candidates with experience in the Trades occupation.
If you seek information on how to begin your Canada immigration application process, you can talk to our MakeHomeCanada experts at 1-800-979-0509, or you can drop us an email at [email protected].
