Recent Immigrants Have a Higher Employment Rate Than Those Born in Canada
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Recent Immigrants Have a Higher Employment Rate than Those Born in Canada

Peter Fey

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higher employment rate

Canada plans to accept around 1.45 million immigrants over the next three years, with 60% of them expected to arrive through programs for economic-class immigrants. There are numerous anticipated advantages for the Canadian economy and society, some of which are evident.

For instance, compared to their Canadian-born contemporaries, recent immigrants are now more likely to be working. There has been a noticeable rise in the employment rate of recent immigrants since 2016 as well as a steady fall in the employment rate of Canadian natives. The core working age of new immigrants is disproportionately between 25 and 54 years old, and they are frequently chosen because of their superior human capital, which makes them great workers in Canada. On the other hand, the population of Canada is ageing and leaving the labour workforce every year. Thus, the Canadian economy will have effects that are most relevant and admissible.  

A New Wave of Immigrants Will Transform Canada’s Demographics

The main driver of population expansion in Canada is immigration. The majority of recent immigrants are economically stable and of prime working age. Canada’s population is predicted to grow substantially younger as a result of the massive migration anticipated in the upcoming years. The average age of Canadians is currently 41, and each year, retirees leave the labour market. It is anticipated that the flood of immigrants in their 40s and 50s will assist society by bringing Canada’s population up to self-sustaining levels, as well as provide a number of economic benefits.

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Immigrants Are Expected to Boost GDP Growth

New immigrants are more tied to the labour force. Many of them have jobs even before entering the country, and admitted for human capital factors that enable them to effectively contribute to the workforce.

More ties to the labour force exist for recent immigrants. Many of them were allowed because of their human capital, which enables them to effectively contribute to the country, even before they arrived. So, it is anticipated that immigration will enhance Canada’s Economy and increase labour input. An increase in GDP often indicates a healthy economy and can result in further advantages like improvements in employment and salary growth. Newcomers’ entry is anticipated to lessen inflationary pressures on the Canadian economy and support the supply side of the economy.

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The Wave of Newcomers Poses a Challenge For Canada!  Can Canada Cope With the Influx of New Immigrants?

As newcomers begin to establish themselves in Canada, recently arrived immigrants may also find it more difficult to get a foothold in the labour market. These findings have prompted concerns about Canada’s readiness for the sizable influx of immigrants it expects to receive over the next three years. Despite this, there are still encouraging indications that immigrants will experience in labour. At record highs, there are currently twice as many open positions as there were before the pandemic. One of the main factors influencing historical immigration targets is the continued tightness of the labour market. Newcomers with in-demand skills and attractive human capital qualities seem more likely to have favourable outcomes in the Canadian labour market despite an ageing population leaving the workforce every year.

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