A recent study by Statistics Canada has confirmed that high levels of immigration to Canada will be required to deal with severe labour shortages due the country’s rapidly aging workforce. Dealing with this problem will require Canada to accept sustained increases in the number of immigrants that it accepts each year for many years to come.
As a result, recent immigrants and those who are planning to immigrate to Canada can expect to find a strong job market with many opportunities for work.
The study also revealed several important emerging trends.
JOB VACANCIES ARE AT RECORD LEVELS
Most new and intending immigrants to Canada want to know whether they will be able to find a job after they arrive in Canada. On this point, the study points to good news. Job opportunities are at record level across Canada and are expected to remain that way for years to come.
Canada’s national unemployment level dropped to a record low of 5.2% in April, and then fell again in May to 5.1%. Among core-aged workers (workers between 25-54 years of age) the unemployment rate was 4.3%.
At the same time, the ratio of unemployed workers to job vacancies in the first quarter of the year (January-March) has fallen from 2.2 in 2020, to 1.3 in 2022. At this level, there is almost one open job position for every unemployed worker in Canada.
Businesses across the country expect to face continuing worker shortages in 2022. As long as this situation persists, Canada will need to increase the number of economic immigrants who are admitted each year.
AN AGING WORK FORCE
Canada’s working-age population (workers between 15 to 64 years of age) is growing older every year.
One out of every five working age Canadians are now approaching retirement age. Working age Canadians currently make up 64.8% of Canada’s population. Statistics Canada expects that in the next 30 years this will fall to below 60%.
If Canada is to maintain its high standard of living and its extensive system of social security benefits such as the Canada Pension Plan for retired workers, the Old Age Security system of monthly payments for Canadians over 65 years of age, the national Unemployment Insurance scheme of income replacement for unemployed workers, and the national Medicare system which pays for medical and hospital services, there must be sufficient numbers of Canadian workers whose taxes will pay for these benefits.
In order for this to happen, Canada will have to significantly increase the number of immigrants which it accepts into the country in the years ahead.
INCOMES OF NEW IMMIGRANTS TO CANADA ARE INCREASING AT A STEADY PACE
Recent immigrants are experiencing faster growth in their earnings than ever before.
Between 2010 and 2018, first year economic immigrants experienced an overall 39% increase in their annual earnings. During the same period, the overall increase in annual earnings for family class immigrants was 27%.
These figures point to continued strong increases each year in the annual earnings of new working age immigrants to Canada.
INTERNATIONAL STUDENTS ARE BECOMING AN IMPORTANT PART OF THE WORKFORCE
Each year since 2000, more and more international students have entered the workforce. Between 2000 to 2019, the number of international students with reported taxable earnings increased from 22,000 to 354,000 students. This means that in 2019 there were 15 times more international students with reported earnings than in 2000.
During the same period, the percentage of international students who entered the workforce increased from 18% to 50% with most of this increase occurring after 2015.
CONCLUSION
Canada’s rapidly ageing population means that there will continue to be more and more job opportunities for new immigrants. As a result, Canada will need maintain high levels of immigration in the years to come if it is to have sufficient workers to fill the available jobs in the workforce.
