Do you realize that Canada is experiencing its lowest unemployment rate due to the Coronavirus pandemic, regardless of the public perception? If you look at the substantial demographic changes Canada’s workforce went through before the outbreak, you’ll find that the country was confident that its employment market would improve.
The main question that arises when considering it from the point of view of immigration policy is the effects of a recession on the employment prospects of immigrants who are granted permanent residency during times of economic recession. According to research conducted recently, immigrants could think that their job market performance will be affected throughout their career in Canada.
These research findings are alarming, particularly in light of the primary shock that the initial stages of the pandemic brought on and the Canadian economy. Remember that Canada is currently trying to accommodate the highest level of immigrants.
A closer look has allowed us to recognize this COVID recession is not the same. In the end, those who recently arrived in Canada or are expected to be allowed entry are convinced that there is an end to the tunnel in the Canadian labor market.
More Canadians are taking their retirement.
The departure of baby boomers from the workforce of Canada should become the main thing you be aware of in case you’re wondering how many Canadian workers are leaving the workforce. As a result, you’ll be able to understand why Canada is the country with the lowest rate of unemployment in its history before the COVID recession hit it. Furthermore, Canada’s unemployment rate is at a new record low despite the pandemic.
We all know that the country’s low birthrate has caused it to be challenging to replace retired workers with new Canadian graduates. Nine million of Canada’s 20 million workers are baby boomers who will reach the country’s 65-year retirement date within the next ten years, creating a market gap. This means that Canada now depends on foreign talent to replace retiring employees.
A retiring workforce needs to be replaced to ensure a country’s economy stays stable. Canada takes this action to keep its tax base and fund education and healthcare. Other sources of talent that we can identify Canada paying attention to are the under-utilized groups such as disengaged young people and older workers, people with disabilities, Indigenous individuals, and women. However, many of these groups would not be able to cover all retirees.
It is now clear why immigration is crucial to Canada’s economic growth. The number of immigrants accounted for 100% of Canada’s growth in its labor force each year a handful of times before the pandemic. In the next ten years, we expect this trend to continue. Native-born and immigrants are benefiting from the aging of the Canadian workforce, causing wage increases and unemployment rates to decrease. Ultimately, what you see in the Canadian labor market will likely remain the same as baby boomers age.
Below, we’ve discussed the significant changes to immigration policies over the last ten years that have impacted newcomers and their outcomes on the labor market.
A More Competitive Selection Process
Young applicants with experience in the workplace, Canadian training and experience, proficiency in French or English, and high scores on the CRS can succeed in the Canadian job market. They have a higher chance of getting permanent residency in Canada because of the transition to more competitive selection criteria for skilled immigrants. Federal government officials, territories, and the provincial governments of Canada have recently modified their criteria for hiring to consider human capital aspects that have been proven to have more significant economic impacts on immigrants.
Selection of More Canadians as Immigrants
Another trend is the increasing number of people opting to stay permanently in Canada. In the study, immigrants from outside Canada made up around 70% of the immigrants who arrived through Express Entry during the pre-pandemic period. However, this percentage fell to around 30% by 2021. With the restrictions on travel and outbreak-related disruptions, it is possible to notice that the Immigration, Refugees, and Citizenship department is becoming more dependent upon Canadian applicants to fulfill its immigration targets.
According to Sean Fraser’s statement outlining his duties, there is a more pressing necessity to determine alternative immigration routes for those from Canada. In the past, programs like the Provincial Nominee Program and other streams have assisted provinces and territories choose more candidates from Canada during the time between.
The trend of hiring in the country is confirmed by Canadian government studies, which show that temporary foreign workers and former students from abroad benefit from the Canadian job market because of their Canadian experience following their permanent residency.