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How will Canada’s economy affect immigrant workers? – Canada Immigration News

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Published on March 29th, 2022 at 08:00am EDT

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Scotiabank how will economy impact new immigrants

Scotiabank how will economy impact new immigrants

At the beginning of the pandemic, immigrants who had landed in the last five years experienced higher unemployment levels than Canadian born workers.

However, over the course of the pandemic, that shifted.

As of January 2022, the employment rate for newcomers is now 7% above its pre-pandemic average.

“Immigrants had this major decrease initially in their total employment levels,” says Marc Desormeaux, senior economist at Scotiabank. “But there’s been a fast bounce back since – faster than the bounce back for Canadian born workers. Immigrant workers are now well above where they were before the pandemic.”

Desormeaux expects this to continue and sees it as a good sign for future immigrant job growth.

Canadian labour shortages

What’s concerning Desormeaux is the mounting labour shortages all sectors are currently experiencing.

“Labour shortages are a real constraint on economic growth and the economy’s ability to recover from COVID-19,” he says.

Labour shortages, which occur when businesses would like to produce more or operate more hours but aren’t able to do so because they can’t hire enough workers with the skill set they need, limit profit and economic growth. In the latest survey by the Canadian Federation of Independent Business, about half of respondents indicated that a shortage of skilled labour was holding them back.

“Canada had about 913,000 job vacancies in the third quarter of 2021. That was the highest ever recorded number for a single quarter,” says Desormeaux. “That rate isn’t typical — which speaks to the particular nature of this downturn. Normally, labour shortages are something that emerges after a period of extended growth. We’re seeing these very tight labour markets with a lot of labour shortages fairly early in the economic cycle.”

While no sector is immune to the difficulties of finding staff, Desormeaux reports that some sectors are experiencing higher rates.

“We’re seeing the tightest conditions in what we call ‘high contact sectors’ like accommodation, food service, and live performance or other industries where economic performance is most closely tied to people’s ability to congregate in groups,” he says. “But this is the same story across most industries. Financial services, technology, and construction have a lot of job shortages as well.”

Desormeaux believes that some of the labour shortages are the result of lockdowns in the high contact sectors, during which workers moved on to other fields or went back to school. But even before the pandemic, researchers were talking about skills shortages in areas like the tech sector, and large-scale investments in infrastructure revitalization is fueling construction skills shortages. Desormeaux expects immigrants to play a key role in helping Canada solve these skills challenges.

“Typically, economic immigrants have made up around 60% of admissions to Canada,” he says. “These are individuals selected based on their ability to contribute to the labour market. Newcomers have skill sets that are valuable and that are missing within the Canadian economy, which contributes to stronger economic growth and more profit for firms.”

According to Desormeaux, the tech sector will be a particular focus for immigration going forward, with shortages in the tech labour market set to cause significant issues in the industry if talent isn’t found elsewhere. He also sees construction as a key area of economic immigration.

“The construction industry is currently dealing with job shortages, and we’re going into a period where infrastructure is being built at the national and provincial levels as part of pandemic recovery efforts,” he says. “We’re also building more and more homes to try and deal with affordability challenges.”

Housing affordability will improve with the right policy

“Our view at Scotiabank Economics is that dealing with affordability is about getting supply and demand to align more closely,” says Desormeaux.

But that’s harder than it may seem since catching up with a lagging housing supply can take years, and current global supply chain disruptions are causing construction delays. Desormeaux advocates for policy changes to increase supply, such as eliminating zoning rules that ban townhomes and apartments in certain areas, increasing housing density around transit stations, and increasing the pace of construction.

He says that Scotiabank Economics recently estimated that Ontario would need at least 650,000 more homes to align its per-person housing stock with the rest of the country — and that’s just one province. To have the same dwellings to population ratio as our international peers, it would take at least 1.2 million more homes.

“We suspect it will take some time before housing price growth becomes more sustainable over the longer run,” he says. “But luckily, we’re not anticipating housing prices taking off like they did at the height for the pandemic, which happened, in part, because not enough supply was coming online because of restrictions.”

A positive outlook for newcomers

Overall, Desormeaux reports a positive outlook for newcomers.

“We have pretty strong immigrant employment growth built into the next few years,” he says. “For newcomers to Canada, determining what kind of lifestyle you would like and what kind of region you’d like to settle into could impact your experience, but we’re fairly optimistic about the overall economic outlook for the country.”

Legal Disclaimer: This article is provided for information purposes only. It is not to be relied upon as financial, tax or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and The Bank of Nova Scotia is not responsible to update this information. References to any third party product or service, opinion or statement, or the use of any trade, firm or corporation name does not constitute endorsement, recommendation, or approval by The Bank of Nova Scotia of any of the products, services or opinions of the third party. All third party sources are believed to be accurate and reliable as of the date of publication and The Bank of Nova Scotia does not guarantee its accuracy or reliability. Readers should consult their own professional advisor for specific financial, investment and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly and action is taken based on the latest available information.

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RCMP end latest N.B. search regarding teenage girl who went missing in 2021

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BATHURST, N.B. – RCMP in New Brunswick say a weekend ground search for evidence related to the disappearance of a teenage girl in 2021 didn’t reveal any new information.

In an emailed statement, the RCMP said 20 people participated in the search for evidence in the case of Madison Roy-Boudreau of Bathurst.

The release said the search occurred in the Middle River area, just south of the girl’s hometown.

Police have said the 14-year-old’s disappearance is being treated as a homicide investigation.

The RCMP said the search “did not reveal any new information regarding the circumstances of her disappearance.”

There are no plans for another search until police receive a tip or a lead pointing to a new search area.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.



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Man Tasered after trespassing in Victoria school, forcing lockdown

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VICTORIA – A middle school in Victoria was forced into a lockdown after a man entered the building without permission, and police say they had to use a stun gun to make an arrest.

Victoria police say officers received multiple calls around noon on Monday of an unknown male entering Central Middle School, leading staff to set off emergency procedures that put the building under lockdown.

Police say its emergency response team arrived within minutes and found the suspect, who “appeared to be in a drug-induced state,” in the school’s library.

A statement from police says the suspect resisted arrest, and officers had to use a Taser to subdue the man.

He’s being held by police and has been assessed by emergency medical staff.

Police say the man was not armed and there were no continuing safety concerns for students and staff following the arrest.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.



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B.C. Greens’ ex- leader Weaver thinks minority deal with NDP less likely than in 2017

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VANCOUVER – Former B.C. Green leader Andrew Weaver knows what it’s like to form a minority government with the NDP, but says such a deal to create the province’s next administration is less likely this time than seven years ago.

Weaver struck a power-sharing agreement that resulted in John Horgan’s NDP minority government in 2017, but said in an interview Monday there is now more animosity between the two parties.

Neither the NDP nor the B.C. Conservatives secured a majority in Saturday’s election, raising the prospect of a minority NDP government if Leader David Eby can get the support of two Green legislators.

Manual recounts in two ridings could also play an important role in the outcome, which will not be known for about a week.

Weaver, who is no longer a member of the Greens, endorsed a Conservative candidate in his home riding.

He said Eby would be in a better position to negotiate if Furstenau, who lost her seat, stepped aside as party leader.

“I think Mr. Eby would be able to have fresh discussions with fresh new faces around the table, (after) four years of political sniping … between Sonia and the NDP in the B.C. legislature,” he said.

He said Furstenau’s loss put the two elected Greens in an awkward position because parties “need the leader in the legislature.”

Furstenau could resign as leader or one of the elected Greens could step down and let her run in a byelection in their riding, he said.

“They need to resolve that issue sooner rather than later,” he said.

The Green victories went to Rob Botterell in Saanich North and the Islands and Jeremy Valeriote in West Vancouver-Sea to Sky.

Neither Botterell nor Valeriote have held seats in the legislature before, Weaver noted.

“It’s not like in 2017 when, you know, I had been in the (legislature) for four years already,” Weaver said, adding that “the learning curve is steep.”

Sanjay Jeram, chair of undergraduate studies in political science at Simon Fraser University, said he doesn’t think it’ll be an “easygoing relationship between (the NDP and Greens) this time around.”

“I don’t know if Eby and Furstenau have the same relationship — or the potential to have the same relationship — as Horgan and Weaver did,” he said. “I think their demands will be a little more strict and it’ll be a little more of a cold alliance than it was in 2017 if they do form an alliance.”

Horgan and Weaver shook hands on a confidence-and-supply agreement before attending a rugby match, where they were spotted sitting together before the deal became public knowledge.

Eby said in his election-night speech that he had already reached out to Furstenau and suggested common “progressive values” between their parties.

Furstenau said in her concession speech that her party was poised to play a “pivotal role” in the legislature.

Botterell said in an election-night interview that he was “totally supportive of Sonia” and he would “do everything I can to support her and the path forward that she chooses to take because that’s her decision.”

The Green Party of Canada issued a news release Monday, congratulating the candidates on their victories, noting Valeriote’s win is the first time that a Green MLA has been elected outside of Vancouver Island.

“Now, like all British Columbians we await the final seat count to know which party will have the best chance to form government. Let’s hope that the Green caucus has a pivotal role,” the release said, echoing Furstenau’s turn of phrase.

The final results of the election won’t be known until at least next week.

Elections BC says manual recounts will be held on Oct. 26 to 28 in two ridings where NDP candidates led B.C. Conservatives by fewer than 100 votes after the initial count ended on Sunday.

The outcomes in Surrey City Centre and Juan de Fuca-Malahat could determine who forms government.

The election’s initial results have the NDP elected or leading in 46 ridings, and the B.C. Conservatives in 45, both short of the 47 majority mark in B.C.’s 93-seat legislature.

If the Conservatives win both of the recount ridings and win all other ridings where they lead, Rustad will win with a one-seat majority.

If the NDP holds onto at least one of the ridings where there are recounts, wins the other races it leads, and strikes a deal with the Greens, they would have enough numbers to form a minority government.

But another election could also be on the cards, since the winner will have to nominate a Speaker, reducing the government’s numbers in the legislature by one vote.

Elections BC says it will also be counting about 49,000 absentee and mail-in ballots from Oct. 26 to 28.

The NDP went into the election with 55 ridings, representing a comfortable majority in what was then an 87-seat legislature.

Jeram, with Simon Fraser University, said though the counts aren’t finalized, the Conservatives were the big winners in the election.

“They weren’t really a not much of a formal party until not that long ago, and to go from two per cent of the vote to winning 45 or more seats in the B.C. provincial election is just incredible,” he said in an interview Monday.

Jeram said people had expected Eby to call an election after he took over from John Horgan in 2022, and if he had, he doesn’t think there would have been the same result.

He said the B.C. Conservative’s popularity grew as a result of the decision of the BC Liberals to rebrand as BC United and later drop out.

“Had Eby called an election before that really shook out, and maybe especially before (Pierre) Poilievre, kind of really had the wind in his sails and started to grow, I think he could have won the majority for sure.”

He said he wasn’t surprised by the results of the election, saying polls were fairly accurate.

“Ultimately, it really was a result that we saw coming for a while, since the moment that BC United withdrew and put their support behind the conservatives, I think this was the outcome that was expected.”

— With files from Darryl Greer

This report by The Canadian Press was first published Oct. 21, 2024.



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