Canada is enjoying their lowest unemployment rate.
This may sound strange given the coronavirus pandemic.
Although there was a little doubt that the labor market would recover given the major demographic changes that engulfed Canada’s workforce before the pandemic, this will continue to change over the next decade.
From a migration policy, one of the important concerns is the impact the recession will have on the labor market performance of migrants seeking permanent residency during periods of economic downturn. According to research, some migrants may see their outcomes in the labor market negatively affect for the rest of their careers in Canada.
The start of the pandemic shows a major shock for the Canadian economy y and Canada is looking to welcome the highest levels of migration in its history.
A more detailed Evaluation shows that the COVID recession is distinct, and migrants who landed recently or who will land soon are still assured of a bright future in the Canadian labor market.
Many Canadian Workers Retiring
The withdrawal of baby boomers is the reason that explains why Canada enjoyed their lowest rate of unemployment ever before the COVID recession and accomplish another historic law in the unemployment rate in spite of pandemics ravaging Canada and the global economy.
About 20 million workers are working in Canada of which about 9 million workers are baby boomers. These all-baby boomers will reach Canada’s retirement age of 65 within the next decade. More workers are retiring which leaves a huge gap in the labor market. Canada has been able to replace all retired workers with young Canadians who are graduates and completing their education and entering the workforce but now this is no longer the case. Canada’s low birth rate means it must rely on other sources of talent to replace its retired workforce.
Replacing the retired workers is critical to keeping the economy running and ensuring that Canadian residents are able to benefit from education and health care, with a tax base large enough to support services. This is even more important because the aging of the population will increase Canada’s healthcare spending.
Another source of talent includes under-utilized groups such as people with disabilities, older workers, women, Indigenous peoples, disengaged youth, and other groups. But adding them to the labor market will not fully compensate all retired workers.
This explains why migration is so important to Canada’s economic success. Before the pandemic, they comprised up to 100% of Canada’s annual labor growth, on some occasions, and this would become the norm over the next decade.
Competitive selection process
There is a shift to a more competitive selection process for skilled migrants. The government of federal and provinces has changed their selection process recently to account for the human capital factor demonstrated by research results. For example, under the CRS system, those candidates who are fluent in English, well educated, and young with professional work experience added a high CRS score that increases their chance to obtain PR and ultimately succeeding in the Canadian Market.
Selected immigrants from Canada
Another major change is the increasing number of PR selected from within Canada. Before the pandemic, immigrants abroad comprised about 70% of those who landed under Express Entry. But this figure fell to 30% last year. IRCC depends on Canada Candidates to achieve its immigration goals. It remains to be seen that IRCC will depend more on the selection of migrants from overseas or in Canada. In addition, provinces and territories are selecting more candidates in Canada through the PNP program and other streams.
The selection trend is also supported by Canadian government research showing that former international students and temporary foreign workers benefit from their Canadian experience in the labor market after obtaining permanent residency.
Investment of Canadian Government to help Newcomers
Another major consideration by IRCC is they increased their investment in migrant settlement services like language training and workforce. The IRCC now spends about $2 billion a year on such services. These services are also offered prior to arrival to give immigrants useful information and support to help expedite the settlement process upon arrival in Canada.
Conclusion
When all these factors are contemplated, you will be able to know the ease that COVID- induced recession results should less in the labor market Scarring newcomers before the recessions. As compared to the past, Canada has a more competitive selection process which is selecting more migrant applicants from within Canada and also spending more money to help migrants succeed.
