High Canadian immigration targets will positively impact the provincial economies. Desjardin’s latest economic report displayed that the western provinces will witness enhanced economic growth.
Immigrants have acquired a wide range of work positions compared to those born in Canada. Overall, a growth rate of 70 percent is evident in the employment sector. This has been true since 2015. Also, until 2019, the employment rates peaked in almost all provinces compared to Canadian-born citizens.
Even after the arrival of Covid-19, these employment gains weren’t affected. Even during the pandemic, there was a rise in employment due to newcomers in Canada. Consequently, this enabled bridging the existing unemployment gap between newcomers and workers born in the country. The unemployment rate was 5.3 percent versus 5 percent in 2022.
While acknowledging the slow economic pace of Canada in the upcoming year, there will be possible diverse financial results for immigrants across Canada. However, this will apply in the recent economic decline and its final rebound.
According to the Bank of Canada, the national GDP growth will be around one percent in 2023. However, earlier in 2022, it turned out to be 3.6 percent.
High Canadian immigration targets will lead to growth for specific provinces
The latest report revealed the possible economic results for each province on factors related to Immigration Levels Plan. For instance, it made predictions about the economies of various provinces based on the increased immigration targets for the following three years. Other factors include the average immigrants who tend to stay permanently in the province. Also, the possible economic growth prediction will depend upon their ability to integrate into the Canadian economy. To comprehend their economic integration, they must look deeper into the pandemic phase and the current time.
Additionally, the report even stated that if the present immigration patterns continue with the same consistency, there will be a massive economic immigration gain. Consequently, certain provinces, like Prince Edward Island, British Columbia, and the Prairie Provinces, will receive such benefits.
PEI is known to receive the highest number of immigrants per capita. Furthermore, other provinces, such as Saskatchewan, Alberta, and Manitoba, might also witness enhanced GDP between 0.3 to 0.6 percent. This is only possible if these provinces are able to receive a higher number of new immigrants.
Moreover, any province with increased jobs and a higher employment rate will entice more immigrants. Additionally, a rise in the employment rate will not have a significant impact on the GDP of that province.
Overall, immigration will further solidify the provincial economy if immigrants choose to stay in communities. Also, this will be the case if they contribute to their economy with regular spending habits.
Besides this, a province must attract a considerable share of immigrants within the current population, and the immigrants must integrate well within the Canadian labor market. As a result, the province will achieve a higher level of contribution due to immigration.
Federal policy results in a better state for immigrants
According to economists, federal policy is the chief reason behind the immigrants’ robust labor market contribution. The federal government invited more international students and Temporary Foreign Workers during the Covid-19. This eventually led to a rise in Canadian Permanent Residents. Furthermore, it indicates that several PRs were already a part of Canada and had the required work experience. As a result, it was easier for them to integrate well into the Canadian labor market.
Canadian provinces with huge populations (regarding oil consumption) started 2020 with a more economical flow but restricted labor markets. This further implied acute labor shortages during the pandemic. Consequently, several companies were compelled to recruit newcomers.
Conclusion
The report finally states that immigration targets solely will not help the Canadian economy significantly. Hence, it is better that Canada continues to bring in more skilled immigrants, specifically the ones with in-demand skills.
Overall, Canada offers more than a hundred immigration routes to newcomers, most of which are part of the Provincial Nominee Programs. Almost all Canadian provinces or territories, excluding Nunavut and Quebec, have the chance to choose candidates. These candidates can have the maximum skills to contribute to the local economy. PNPs often invite candidates who can fight the labor shortages in the healthcare, tech, and skilled trades sectors.
Numerous immigration programs and pathways tend to focus on more significant Canadian regions. These include the Atlantic Immigration Program and the Rural and Northern Immigration Pilot Program. Moreover, these programs extend their support to candidates through their employers. These candidates get access to healthcare facilities and settlement services.
