A new study revealed that immigration would not only bring out Ontario and Quebec from the downturn but will also help in the future.
According to a Scotiabank report, even though the market has not fully recovered, billions could be added to both provinces if the country meets its immigration targets. It is estimated that Ontario’s economy will have $2.9 billion added to it and nearly a billion dollars for Quebec.
“Immigration is not a panacea, but we find clear and significant economic benefit to greater newcomer admissions in Canada’s two largest provinces— even after accounting for historical labor market gaps,” writes economist Marc Desormeaux, author of the report. “Closing those gaps offers scope for even more growth.”
Another factor insight is the disparity between immigrants and workers born in Canada if that conflict is settled so another $12 to $20 billion would be added to the economy of Ontario.
Doubts on increasing the immigration count
People can question that at the time of economic contraction, why increase immigration? Also, when immigrants have underperformed Canadian workers in the market.
But the report says that immigrants have worked on their performance before the pandemic, and it was improving too. Also, they offer a “hefty” contribution to the province’s economy. The report further indicates that in the coming 5 years, immigrants will significantly contribute to the economic rising of both provinces. Without immigrants, the economy would be lower by 20% this year, and if they contribute, so they will make up half of the growth in 2022.
Immigrants have been struggling to get a job when compared to Canadian workers. The gap between Canadian and immigrant performances reduces with time. Even with the high number of immigrants in the past few years, the gap has been narrowing.
The report says that to nullify the gap, businesses and policymakers will have to go hand-in-hand. Business communities can help newcomers by taking diversified initiatives at work, and the policymakers can ensure that they are providing such an environment where businesses can thrive.
If a new policy is being framed, then that should take into account of uneven impact of the pandemic in various fields. For example, the retail sector has been drastically impacted by the pandemic and may witness an activity hike due to unfilled demands. The health care sector in contrast may continue to witness a labor shortage.
“Canada’s immigration success story is by now well-documented; we contend that just as it supported the country’s pre-pandemic expansion, under the right conditions, it can help chart a course to recovery from COVID-19,” Desormeaux wrote.
