New immigrants will have better employment prospects than their Canadian-born peers. Canada’s objective is to welcome nearly 1.45 million newcomers. Additionally, 60 percent of these will come through the economic class programs.
New immigrants will have better employment prospects
Overall, these newcomers will have significant positive impacts on Canadian society and the economy. All these details are already evident from Desjardin’s study on the effect of federal immigration targets. The study claims that newcomers in Canada will have better chances of being employed than those born in Canada. This recent conclusion is a blend of two major factors. One is the drastic rise in the employment rate among new immigrants since 2016. Meanwhile, the other factor is the overall decrease in the employment rate of Canadian-born people.
The demographic compositions of each group are used to create this effect. The core working age of new immigrants is predominantly between 25 and 54 years old. They are frequently chosen because they have the human capital qualities needed to succeed in Canada’s labor market. On the other hand, Canada has an aging population, and each year a regular number of retirees leave the workforce (a key reason for immigration to occur in the first place). In light of this, it is vital to consider the broader effects that immigration will have on the economy.
The demographics of Canada will alter due to new immigrants
Canada’s population increase is primarily driven by immigration. Most recent immigrants come from economically stable backgrounds and are in the prime of their working lives. Canada’s population is predicted to grow substantially younger due to the massive migration anticipated in the upcoming years. With retirees leaving the labor market each year, Canadians’ median age is 41.
The overflow of core-aged immigrants will likely provide not just the sociological benefits of boosting Canada’s population to self-sustaining levels (i.e., a birthrate of at least two children per home) but also a slew of economic benefits to the country.
New immigrants will have better employment prospects and also enhance the GDP growth
New immigrants are more or less associated with the Canadian labor force. Most newcomers already possess employment offers before entering Canada. They come to Canada based on Human Capital factors that significantly contribute to the Canadian workforce.
Overall, immigration will more likely enhance Canada’s GDP per capita because the labor input might also rise. GDP measures the overall economic worth of all completed products produced inside a nation’s borders. A growing GDP is typically an indication of a strong economy and can have a positive impact on hiring and wage growth, among other things.
Hence, the arrival of new immigrants will more likely heighten the economy’s supply. Consequently, it will further reduce the inflation-related pressures on the Canadian economy.
This influx of immigrants: Can Canada take it?
The Desjardins research made a note of several important things, including the cyclical effects of immigration on the labor market. Unemployment among recent immigrants often peaks every ten years, then declines once more. Although after 10 years in Canada, the unemployment rates for newcomers and Canadians were barely distinguishable.
As they start to establish themselves in Canada, newly arrived immigrants may also find it more difficult to mark their presence in the labor market. These factors have prompted concerns about Canada’s readiness for the sizable influx of immigrants that it intends to receive over the next three years.
However, there are still positive signs that newcomers will positively impact Canadian labor results. Employment vacancies are presently at their peak and have multiplied since the pandemic. On the other hand, the Canadian labor market is quite restricted. Hence, it is the major reason behind the higher immigration targets. Additionally, the aging population leaving the workforce each year will more positively impact the Canadian labor market.
Conclusion
The goals Canada has set for immigration might benefit the nation’s societal and economic development. There is little doubt that Canada needs immigrants now more than ever (due to COVID-19) and there are reasonable grounds for both immigrants and natives of Canada to be optimistic about the effects of the immigration that will occur in the following three years.
