The unemployment rate of Canada is at a record low of 5.1% resulting in a remarkable shortage of workers. Job requirements are over 80% which is higher than pre-pandemic.
The number of vacancies is huge due to the aging population of Canada. More than one Canadian in five working age is turning into their retirement age. The low birth rate in Canada composed the effect that there are only 1.4 children per woman. This birth rate isn’t enough to replace retirees.
Increment in Immigration is Important
A recent study by Statistics Canada states that in 2021, new immigrants (those who have been in Canada for 10 years or less) accounted for 8% of the total employed labor force, but 13% of workers in the food services and hospitality industry make. As well as 11% in the professional services and 10% in the manufacturing and transportation sectors.
The study also revealed that job vacancies in the manufacturing and retail sectors are upward. Vacancies in manufacturing reached 87,400 in the previous quarter, and employer vacancies in retail reached 114,600.
Changes in the labor market for new immigrants
In the year superior up to the pandemic, migrants saw their employment rates rise sharply. In 2021, 77% of recent immigrants were employed and long-term immigrants had an employment rate of 84%.
Between 2010 and 2018, early earnings among new economic immigrants also increased. During this time frame, earnings rose 39% over the first full year. Family-class immigrants saw a 27% increase in income and refugee income by 9%, leading to an average wage increase of 35% for all new immigrants.
Work permit holders are becoming permanent residents frequently
During the last decade, the number of work permit holders in Canada has increased from 111,000 to 770,000. These workers are often classified as low-skilled sectors such as agriculture, housing and food services, and administrative and support.
In 2020, A total of 67% of new economic migrants in Canada were those who have a former work permit or they are international students. There has been a significant increase in foreign students who get permanent resident status within 10 years of migrating to Canada. Several people choose to get a PGWP as a beginning after they complete their studies.
Migrants continue to face labor market problems
The study found that several permanent residents and work permit holders misspent their skills through employers because of the difficulty of obtaining the required accreditation in Canada. Between 2001 and 2016, the number of educated migrants working in a university in designation that required a degree of university dropped from 46% to just 38%.
In the long term, Canada must carry on with expanding the flow of skilled labor to reduce the impacts on the labor market of Canada’s aging population. Canada understands that migrants are important to sustaining a powerful economy and provides more than 100 economic migration routes.
Express Entry is the major federal route to permanent residence. In recent months the Express Entry draws seemed paused. The immigration minister announced that Express Entry would return to normal on 6 July.