Economy

Canada wastes the skills of its immigrants, and the economy suffers as a result

Published

1 year ago

June 14, 2023

There is no point in attracting highly educated people to Canada if we are not going to remove roadblocks to economic integration and allow them to put their skills to work.John Lehmann/John Lehmann/Globe and Mail

Claudia Hepburn is the chief executive of Windmill Microlending, a national charity that helps immigrants restart their careers, triple their incomes and alleviate skilled labour shortages.

The Organization for Economic Co-operation and Development predicts Canada’s economic growth will be dead last among 40 advanced economies over the next half decade. This shocking statistic is based on per capita growth in growth domestic product, which is the country’s productivity divided by the total population. How can we fix that?

Immigration is often touted as a panacea for economic growth, yet that notion is increasingly being challenged.

Analysts who favour higher levels of immigration cite Canada’s low birth rate, aging population and rapidly declining ratio of working age Canadians to seniors (7.7 to 1 in 1966, 3.4 to 1 in 2022). Others who want to reduce immigration targets argue that our supply of housing, health care and infrastructure are insufficient to handle a massive increase in newcomers. Still others contend that the solution is to focus on immigrants with the highest skills and earnings potential.

I believe immigration is a critical part of the solution – but only part of it. Necessary in the face of Canada’s low birth rates, high immigration levels alone will not address our punishingly low economic growth rate.

Canada’s issue is not a shortage of skilled immigrants, but the roadblocks that stand in the way of their economic integration.

A recent Scotiabank Economics report shows that two-thirds of immigrants arrive with university degrees, whereas only one-third of Canadians hold them. Yet two-thirds of native-born, university-educated Canadians are in jobs that require a degree, whereas only one-third of immigrants with degrees are in jobs that require one. In health care, the numbers are almost as bad: More than 60 per cent of internationally trained doctors and nurses are not working in their profession.

Canada’s labour needs are not what they were a decade ago, let alone a generation or a century ago. Many of our labour shortages are for highly skilled workers: nurses, doctors, pharmacists, engineers and cybersecurity experts. Low-income and affluent Canadians alike will suffer if these skills gaps are not addressed.

There is no point in admitting highly educated people if we are not going to allow them to put their skills to work.

There are many reasons why this skills waste is happening. Most of them stem from a bygone era when labour supply outstripped demand and xenophobic policies that protected Canadian educational institutions and graduates were popular. It’s clear now that those policies are damaging to our economic growth and to our reputation as a just, inclusive and welcoming society.

The costs, in time and money, of reaccreditation programs for internationally trained professionals are excessive – often measuring in years and tens of thousands of dollars. There are also too few residency spaces for internationally trained physicians, and too many requirements for Canadian experience that are hard for newcomers to attain.

My organization sees these challenges daily through our clients’ eyes. Too many engineers, pharmacists and doctors are working in fast-food service or driving for Uber because they can’t afford the cost of accreditation. Without a Canadian credit history, they spend years underemployed.

Governments are taking steps to address these challenges, but the progress is too slow.

Bringing skilled immigrants to Canada is critical to our future prosperity. But smoothing their path to professional integration and prosperity is even more important if we want to climb out of last place in the OECD ranking of GDP per capita and preserve our standard of living over the next generation.

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Economy

B.C.’s debt and deficit forecast to rise as the provincial election nears

Published

2 days ago

September 10, 2024

Anne Joseph

VICTORIA – British Columbia is forecasting a record budget deficit and a rising debt of almost $129 billion less than two weeks before the start of a provincial election campaign where economic stability and future progress are expected to be major issues.

Finance Minister Katrine Conroy, who has announced her retirement and will not seek re-election in the Oct. 19 vote, said Tuesday her final budget update as minister predicts a deficit of $8.9 billion, up $1.1 billion from a forecast she made earlier this year.

Conroy said she acknowledges “challenges” facing B.C., including three consecutive deficit budgets, but expected improved economic growth where the province will start to “turn a corner.”

The $8.9 billion deficit forecast for 2024-2025 is followed by annual deficit projections of $6.7 billion and $6.1 billion in 2026-2027, Conroy said at a news conference outlining the government’s first quarterly financial update.

Conroy said lower corporate income tax and natural resource revenues and the increased cost of fighting wildfires have had some of the largest impacts on the budget.

“I want to acknowledge the economic uncertainties,” she said. “While global inflation is showing signs of easing and we’ve seen cuts to the Bank of Canada interest rates, we know that the challenges are not over.”

Conroy said wildfire response costs are expected to total $886 million this year, more than $650 million higher than originally forecast.

Corporate income tax revenue is forecast to be $638 million lower as a result of federal government updates and natural resource revenues are down $299 million due to lower prices for natural gas, lumber and electricity, she said.

Debt-servicing costs are also forecast to be $344 million higher due to the larger debt balance, the current interest rate and accelerated borrowing to ensure services and capital projects are maintained through the province’s election period, said Conroy.

B.C.’s economic growth is expected to strengthen over the next three years, but the timing of a return to a balanced budget will fall to another minister, said Conroy, who was addressing what likely would be her last news conference as Minister of Finance.

The election is expected to be called on Sept. 21, with the vote set for Oct. 19.

“While we are a strong province, people are facing challenges,” she said. “We have never shied away from taking those challenges head on, because we want to keep British Columbians secure and help them build good lives now and for the long term. With the investments we’re making and the actions we’re taking to support people and build a stronger economy, we’ve started to turn a corner.”

Premier David Eby said before the fiscal forecast was released Tuesday that the New Democrat government remains committed to providing services and supports for people in British Columbia and cuts are not on his agenda.

Eby said people have been hurt by high interest costs and the province is facing budget pressures connected to low resource prices, high wildfire costs and struggling global economies.

The premier said that now is not the time to reduce supports and services for people.

Last month’s year-end report for the 2023-2024 budget saw the province post a budget deficit of $5.035 billion, down from the previous forecast of $5.9 billion.

Eby said he expects government financial priorities to become a major issue during the upcoming election, with the NDP pledging to continue to fund services and the B.C. Conservatives looking to make cuts.

This report by The Canadian Press was first published Sept. 10, 2024.

Note to readers: This is a corrected story. A previous version said the debt would be going up to more than $129 billion. In fact, it will be almost $129 billion.

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Economy

Mark Carney mum on carbon-tax advice, future in politics at Liberal retreat

Published

2 days ago

September 10, 2024

Anne Joseph

NANAIMO, B.C. – Former Bank of Canada governor Mark Carney says he’ll be advising the Liberal party to flip some the challenges posed by an increasingly divided and dangerous world into an economic opportunity for Canada.

But he won’t say what his specific advice will be on economic issues that are politically divisive in Canada, like the carbon tax.

He presented his vision for the Liberals’ economic policy at the party’s caucus retreat in Nanaimo, B.C. today, after he agreed to help the party prepare for the next election as chair of a Liberal task force on economic growth.

Carney has been touted as a possible leadership contender to replace Justin Trudeau, who has said he has tried to coax Carney into politics for years.

Carney says if the prime minister asks him to do something he will do it to the best of his ability, but won’t elaborate on whether the new adviser role could lead to him adding his name to a ballot in the next election.

Finance Minister Chrystia Freeland says she has been taking advice from Carney for years, and that his new position won’t infringe on her role.

This report by The Canadian Press was first published Sept. 10, 2024.

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Economy

Nova Scotia bill would kick-start offshore wind industry without approval from Ottawa

Published

2 days ago

September 10, 2024

Anne Joseph

HALIFAX – The Nova Scotia government has introduced a bill that would kick-start the province’s offshore wind industry without federal approval.

Natural Resources Minister Tory Rushton says amendments within a new omnibus bill introduced today will help ensure Nova Scotia meets its goal of launching a first call for offshore wind bids next year.

The province wants to offer project licences by 2030 to develop a total of five gigawatts of power from offshore wind.

Rushton says normally the province would wait for the federal government to adopt legislation establishing a wind industry off Canada’s East Coast, but that process has been “progressing slowly.”

Federal legislation that would enable the development of offshore wind farms in Nova Scotia and Newfoundland and Labrador has passed through the first and second reading in the Senate, and is currently under consideration in committee.

Rushton says the Nova Scotia bill mirrors the federal legislation and would prevent the province’s offshore wind industry from being held up in Ottawa.

This report by The Canadian Press was first published Sept. 10, 2024.

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