Statistics Canada revealed August’s Labor Force Survey recently. Earlier in 2015, the number of unemployed people accounted for 989,000, while the job vacancies in Canada remained at 1,038,000. It is predicted that thirty-eight percent of businesses would find it rather challenging to recruit skilled employees in the upcoming three months. The Labor Force Survey stated a decline in employment with a drop of 40,000 jobs, whereas the unemployment rate increased up to 5.4 percent from 0.5 percent in the seven months.
The employment rate took a dip in provinces such as British Columbia, Quebec, Nova Scotia, and Manitoba.
Immigrant’s contribution to Canada turns out significant
Statistics Canada observed that immigrants contributed to the lowest unemployment rate compared to any August month in the history of the country. It went down to 7.6 percent. The percentage is the lowest ever since the data was made available in 2006. The survey took place in August and released the figure for immigrants within the labor force in Canada to be around 875,000. This estimate is prevalent in big cities such as Toronto and Montreal.
Higher employment vacancies and immigrant performance in the labor market
Canadians are constantly searching for new jobs. According to the LFS, as much as 6.4 percent of permanent employees were thinking of switching jobs in August 2022. However, the percentage increased up to 11.9 percent. This percentage almost went on to be twice within the upcoming six months compared to the time when it was initially taken into consideration. A career change was the primary reason for which they wished to leave their jobs, specifically in August.
The other factor which had a huge impact was the majority of Canadians who were about to fulfill their retirement age and therefore, decided to step back from the Canadian workforce. The data reveals that around 307,000 Canadians decided to quit their jobs in August. The aging population significantly contributes to the Canadian population. Consequently, this situation might worsen with time.
Therefore, the above factors caused the immigrants to have success in the Canadian labor market in August.
Future of people seeking to immigrate to Canada
The increasing unemployment rates are also leading to a larger number of vacancies. On the other hand, the aging population is also causing a disproportion in terms of Canada’s population. However, in the future, immigrants coming over to Canada will have a massive role to play. The labor market will greatly depend upon immigrants, seeing the current circumstances.
The LFS stated that increasing retirements and people leaving the workforce every now and then have led to a huge dependency on immigrants.
The economic immigration streams continue to dominate the country and have also provided solutions to meet the labor market requirements and demands. All streams under Express Entry such as the Federal Skilled Worker Program, FSTP, CEC, and the Provincial Nominee Program have helped greatly.
Canada is likely to meet the target of welcoming at least 431,000 immigrants. PNPs will be welcoming an increased number of applicants compared to all programs under Express Entry.
