Canada’s recent economic report shows that Canada’s high immigration targets boost the western province’s economic growth. A majority of the jobs added by immigrants since 2015 have been net new jobs, with immigrants making up 70% of the growth in employment. Almost every province had higher employment rates for new immigrants by 2019.
Progress in this area was negligible during the COVID-19 pandemic. In 2022, the new immigrants’ unemployment rate was 5.3% compared with 5% for Canadian-born employees, due to a boom in employment during this time.
During the impending downturn and in the subsequent recovery of the economy, newcomers in various regions of Canada could experience a variety of economic results. The economy is therefore expected to slow down in the upcoming year. The Bank of Canada predicts that the national GDP will expand by just 1% over 2023, compared to 3.6% in 2022.
Western province’s benefiting from Canada’s high immigration
The Immigration Levels Plan balanced the economic outcomes of each province. As an example, it predicted the province’s economies based on varying immigration targets for the next three years, the typical proportion of immigrants who settled in each province, and how much immigrants had assimilated into the economy before and since the pandemic.
A study indicates that Canada’s Prairie Provinces, British Columbia, and Prince Edward Island will receive the most economic benefits from increased immigration targets. As a result of its high immigration rate per capita, PEI is the most immigrant province in Canada.
Moreover, a higher number of newcomers would likely boost the GDPs of Alberta, Manitoba, and Saskatchewan by between 0.3 and 0.6 percentage points. By improving economic conditions and lowering costs in the next few years, they can attract a greater share of newcomers.
An employer-friendly province is one of the main factors that attracts and keeps immigrants. However, an elevated employment rate in itself does not greatly affect a province’s GDP.
A newcomer’s participation in daily spending and long-term residence in a community will boost the local economy and the provincial economy. As immigration becomes more integrated into labor markets and makes up a greater share of a province’s population, its economic benefits become more apparent.
A federal policy is helping recent immigrants succeed
Economists attribute immigrants’ success on the job market to federal policy. The government allowed foreign students and temporary foreign workers to stay in Canada during the epidemic by accepting more permanent residents. Due to the fact that many of the new permanent immigrants were already citizens of Canada and had prior work experience in the country, it was much easier for them to integrate and join the workforce.
At the start of 2020, provinces with a larger population (determined by their oil consumption) experienced tighter labor markets and greater economic growth. In response, more businesses recruited recent immigrants during the pandemic, leading to more labor shortages.
Conclusion
Based on the analysis, Canada cannot attain strong economic growth with immigration targets alone, despite the fact that immigration targets may benefit the Canadian economy. The report suggests that Canada should welcome immigrants with in-demand skills.
Over 100 economic migration options are available to entrants to Canada. A significant portion of the Provincial Nominee Program (PNP) is made up of them. In all provinces and territories, except Quebec and Nunavut, the PNP allows them to select applicants with talents that will benefit their regional economies. Applications for these programs are typically open to candidates who are qualified to address regional labor shortages in fields such as technology, skilled crafts, or healthcare.
Other immigration initiatives, like the RNIP – (Rural & Northern Immigration Pilot Program) and the AIP – (Atlantic Immigration Program), concentrate on wider geographic regions of Canada. As part of these programs, employers provide substantial assistance to candidates, including relocation assistance and healthcare coverage.
