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By Sanaya Jindal,
Date: May 27, 2023
Immigrants Address Labor Market Gaps, Drive Innovation, and Support Economic Growth
In Canada, immigrants play a vital role in contributing to the economy, filling job vacancies, and creating opportunities for Canadian citizens. The strength of Canada's economy is closely tied to its labor force, with immigrants making significant contributions to various sectors and helping sustain essential public services, such as healthcare.
Due to demographic shifts with Canadians living longer and having fewer children, the country's labor force would face challenges in meeting the demand for qualified workers if not for immigration. Immigrants help address these gaps by bringing their skills, expertise, and contributions to the workforce. As a result, the labor force in Canada continues to experience gradual growth each year.
Apart from filling job vacancies, immigrants stimulate economic activity by spending on goods, housing, and transportation. Their financial contributions, including income taxes, play a crucial role in supporting healthcare services and providing necessary support to retired Canadians. The ratio of workers to retirees has declined over the years, and by 2030, when five million Canadians are expected to retire, the ratio will be further strained, with only three workers for every retiree. Immigrants play a pivotal role in supporting the needs of an aging population, ensuring that younger Canadians are not burdened with disproportionately higher taxes to maintain existing benefits.
While immigration alone cannot solve this demographic challenge, it significantly contributes to the country's economic growth and helps sustain commitments to vital social programs. More than 80% of recent immigrants admitted to Canada are under the age of 45, ensuring they have ample working years ahead of them to contribute to the Canadian economy.
The demand for skilled workers is evident as some Canadian employers struggle to find qualified Canadian-born individuals to fill certain positions. Over 60% of immigrants are carefully selected for their positive impact on the economy. Notably, the top five occupations of individuals invited to immigrate under the Express Entry program are software engineers and designers, information systems analysts, computer programmers, financial auditors and accountants, and advertising, marketing, and public relations professionals.
Immigrant entrepreneurs also play a significant role in Canada's economic growth by creating jobs, attracting investment, and driving innovation. Many immigrants possess valuable science, technology, engineering, and math (STEM) skills, accounting for approximately half of all STEM degree holders in the country. These skills are highly sought-after in Canada's knowledge-based economy.
To ensure successful integration into the workforce, it is essential for immigrants to have their education, training, and experience aligned with Canadian job standards. Collaborative efforts with employers, provinces, and territories are underway to expedite this process.
Furthermore, immigrants fill labor market needs by taking on jobs that may not attract Canadian applicants. Temporary foreign workers play a crucial role in meeting labor demands in various industries, including agriculture and agri-food, healthcare, and technology. Thorough screening processes are in place to protect the health, safety, and security of Canadians.
Moreover, immigrants contribute to trade ties with their home countries. Immigrant-owned businesses not only create employment opportunities for Canadians but also facilitate the import of goods from diverse regions, enriching the variety of products available to all Canadian consumers. Immigrants' networks in their home countries also facilitate increased exports.
In conclusion, immigrants are a valuable asset to the Canadian economy, addressing labor market gaps, driving innovation, and supporting economic growth. Their contributions ensure Canada's prosperity and sustainability, while simultaneously providing opportunities for Canadian citizens to thrive. Recognizing and harnessing the potential of immigrants will continue to shape a prosperous and diverse future for Canada.
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