canada jobsCanadian Labour Market

High Levels of Immigration Critical to Canadian Labour Market, Research Shows

Published on: June 22nd, 2022

The Canadian labour market is critically dependent on high levels of immigration, according to a new study. The study, conducted by Statistics Canada, found modest, sustained levels of immigration will not be sufficient to offset the longer-term labour impacts of Canada’s aging population.

Find out if you're eligible for Canadian immigration

As Canada’s post-pandemic economy continues to grow, employers are experiencing significant labour shortages. According to Statistics Canada, nearly 40 percent of businesses anticipated worker shortages in early 2022.

Record high job vacancies

According to Statistics Canada’s latest Job Vacancy report, the number of job openings across the country reached an all-time high of 957,500. This was an increase of 2.7% from the previous peak in the last quarter and over 80% above pre-pandemic levels. This was the highest quarterly number on record.

The latest figures also show that job vacancies continue to rise in the health care and social assistance sector. The number of vacancies in this sector increased by 5 percent from the previous quarter.

The health care and social assistance sector is growing rapidly due to the aging population. The shortage was further exasperated by the COVID-19 pandemic.

Job vacancies have also continued to rise to a record-high in the construction sector. Construction sector vacancies were up by 7.1% from the previous quarter, with 81,500 positions to fill.

Manufacturing and retail trade sectors also reached record-high vacancies, peaking at 87,400 in the manufacturing sector and 114,600 in the retail trade sector

Immigration as a solution

As Canada faces an acute shortage of skilled workers, many businesses struggle to find the right people to fill positions. To help address this problem, Canada has turned to immigration to fill record numbers of job openings.

Canada’s immigration minister announced new measures to help ensure Canada can recruit and retain the workers needed to keep the economy going. Among the measures included extending post-graduation work permits and resuming all-program Express Entry draws.

The government previously increased immigration targets in February 2022 in response to Canada’s growing economy. Canada may need to continue to increase immigration levels to keep up with demand.

Improved labour market outcomes for recent immigrants

Labour market outcomes for recent immigrants improved substantially in the years leading up to the pandemic. According to Statistics Canada, the employment rate for recent immigrants has increased by 8 percentage points since the early 2010s, while the earnings among recent economic immigrants rose by 39% percent.

In contrast, the employment rate for Canadian-born workers increased by just 2% for the same period.

The study’s authors say the improvements are likely due to a number of factors, including stronger economic growth in Canada and changes to immigration policies. The report found that the increased reliance on Temporary Foreign Workers (TFW) tends to improve the economic outcomes of immigrants. Programs like the Canadian Experience Class (CEC) and Provincial Nominee Programs (PNPs) typically invite candidates that are already working in Canada and are therefore more likely to succeed in the labour market.

As the economy continues to grow, there are not enough Canadians to fill the available jobs. Immigrants are vital to fill the gap and help to keep the economy strong.

 

Interested in learning more about how you can immigrate to Canada? Complete our free online assessment form today for a free evaluation of your options!

Free assessment

Recent articles

Express Entry Draw

Express Entry Draw #225 | 636 PNP Candidates Invited

Canada held a new round of invitations for Express Entry provincial nominees as IRCC gears up for the next all-program draw. Immigration, Refugee, Citizenship Canada […]

Express Entry

New Express Entry Program Changes Coming This July

This July, many new changes to the Express Entry program are likely to come into effect. With faster processing times, more invitations to apply, and […]

Canada Permanent Residence | Temporary Foreign Worker Program

Canada to Reveal New TR to PR Immigration Program

According to Canada’s Immigration Minister, the Canadian Government is planning to provide a faster pathway to permanent residence for temporary workers. Like the TR to […]

Living in Canada

What Canada’s Record-Low Unemployment Means for Immigration

According to a recent Statistics Canada report, Canada’s unemployment rate hit a record low at 5.1%. As the Canadian economy exceeds pre-pandemic growth, employers look […]

International Students

Quebec Ends Work Permits for Some Private College Graduates

Quebec announced they will no longer be issuing post-graduate work permits to international graduates from unsubsidized private colleges as of September 1st, 2023. The Quebec […]

Express Entry Draw

Express Entry Draw #224 | 923 PNP Candidates Invited

Immigration, Refugee, Citizenship Canada (IRCC) invited 932 candidates to apply for permanent residence in the most recent Express Entry draw.

Free assessment

Discover your Canadian immigration options. Get your free assessment now!