A citizenship ceremony at the ISS of BC Welcome Centre in Vancouver on March 29, 2017.Rafal Gerszak/The Globe and Mail
Parisa Mahboubi is a senior policy analyst at the C. D. Howe Institute, where Tingting Zhang is a junior policy analyst.
Canada consistently fails to fully utilize immigrants’ skills, limiting its efforts to address labour-market needs and imposing a loss on the economy.
Economic immigration is Canada’s largest and most popular admission category.To make such immigration more responsive to labour-market needs, Canada recently launched category-based selection that prioritizes in-demand occupations facing shortages, such as those in health care and science, technology, engineering and mathematics (STEM) fields.
However, once they get to Canada, foreign-educated immigrants, particularly recent immigrants, often encounter difficulties finding employment that aligns with their qualifications, and experience persistent skills underutilization. This phenomenon exists even among immigrants in targeted occupations in category-based selection, limiting the benefit of immigrants’ influx in those occupations.
According to Statistics Canada, more than 25 per cent of all immigrants (aged 25-64) with a foreign bachelor’s degree or higher worked in occupations requiring only a high-school diploma or less in 2021.
Earlier evidence from 2016 also shows that only two in five economic immigrants with a health-related degree worked in health-related occupations. The mismatch rate is also high among immigrants with a degree in the STEM fields (more than 50 per cent).
While admitting more immigrants in targeted occupations can help combat some chronic labour shortages, addressing underutilization issues is far more critical.
Obstacles that prevent economic immigrants from fully utilizing their skills include regulatory, language and cultural barriers, nonrecognition of foreign credentials and work experience, lack of Canadian experience, and discrimination.
To better integrate economic immigrants, provincial governments need to work with regulatory bodies to streamline foreign-credential and work-experience recognition. Some provinces are already moving in the right direction. For example, eight provinces offer practice-ready assessment programs for internationally trained family physicians.
But although this program can help speed up the credential recognition process, it is not open to all physicians and the number of assessments seems to be low, failing to keep pace with demand: Only 50 applicants will be accepted this year in Ontario. Provinces should expand this program based on the outcome evaluation and consider a similar program for other regulatory professions.
Provinces can also learn best practices from abroad. For example, Australia offers four assessment pathways for international medical graduates to register to practice. It has also taken several actions to reduce red tape and to streamline and expedite the assessment and registration process. The changes include increasing senior staff and cutting the processing time for initial risk assessments, fast-tracking admission of practitioners from trusted countries, and reviewing standards and requirements.
Professional Engineers Ontario recently removed the requirement of Canadian work experience for qualified foreign engineers. This change is a welcome strategy for other regulatory professions and other provinces to follow.
In addition, investing more in bridging programs such as Canada Work Experience that connects immigrants with experienced professionals in their respective fields through experiential learning, internship, or unlicensed opportunities helps immigrants understand the local job market. It also allows them to learn the workplace culture and gain Canadian experiences and new skills.
Governments need to support programs focusing on employability skills and develop targeted job-matching programs to facilitate connections between employers seeking skilled workers and immigrants looking for opportunities. They also need to educate employers on the benefits of hiring immigrants and encourage employers to hire recent immigrants.
A McKinsey report found that organizations with more ethnic and cultural diversity are 36 per cent more likely to outperform their competitors in profitability. According to a Toronto Region Immigrant Employment Council’s survey, 80 per cent of GTA employers who intentionally hire immigrants noticed a positive impact on their organization.
Raising awareness of, enhancing access to, and encouraging participation in employment services, language learning resources and bridging programs help provide better and faster labour-market integration of newcomers. Between 2016 and 2020, only 8.5 per cent of economic principle applicants accessed federally funded employment and community connection programs, far less than other immigrant groups.
According to a survey in 2021, only 8 to 9 per cent of skilled newcomers who used employment services learned firsthand about the available services from government offices (e.g., upon arrival at the border). The federal government needs to actively reach out to newcomers, educate them about employment assistance services and improve the usage of prearrival employment services.
As Canada plans to attract more skilled immigrants to fill gaps in the labour force and support the economy, better use of their skills and integration of this talent are becoming more crucial. Their prosperity means generations of benefits to come.
OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.
Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.
Business, building and support services saw the largest gain in employment.
Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.
Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.
Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.
Friday’s report also shed some light on the financial health of households.
According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.
That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.
People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.
That compares with just under a quarter of those living in an owned home by a household member.
Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.
That compares with about three in 10 more established immigrants and one in four of people born in Canada.
This report by The Canadian Press was first published Nov. 8, 2024.
The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.
The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.
CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.
This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.
While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.
Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.
The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.
This report by The Canadian Press was first published Nov. 7, 2024.
Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.
As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.
Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.
A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.
More than 77 per cent of Canadian exports go to the U.S.
Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.
“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.
“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”
American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.
It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.
“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.
“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”
A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.
Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.
“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.
Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.
With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”
“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.
“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”
This report by The Canadian Press was first published Nov. 6, 2024.
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