Introduction: Canada's ambitious immigration targets are expected to have significant positive impacts on provincial economies, particularly in the western regions, according to a recent economic report by Desjardins. This analysis sheds light on the economic benefits of increased immigration, outlining which provinces stand to gain the most and why.
Key Findings:
1. Immigrants Driving Employment Growth:
Since 2015, immigrants have been instrumental in Canada's employment gains, accounting for 70% of net new positions.
By 2019, employment rates among new immigrants surpassed those of Canadian-born workers in nearly every province.
2. Economic Resilience Amidst Pandemic Challenges:
Despite the COVID-19 pandemic, there was a notable surge in employment among new immigrants, narrowing the unemployment gap between immigrants (5.3%) and Canadian-born workers (5%) by 2022.
3. Impact on Provincial Economies:
Projections indicate that provinces like British Columbia, the Prairie Provinces (Alberta, Manitoba, Saskatchewan), and Prince Edward Island (PEI) will experience significant economic gains due to higher immigration targets.
Alberta, Manitoba, and Saskatchewan could see a boost of 0.3 to 0.6 percentage points to their GDP by attracting more newcomers through improved economic conditions and affordability.
4. Factors Influencing Economic Contribution:
Employment opportunities and a higher rate of employment are key factors in attracting and retaining immigrants.
Long-term settlement and integration into local communities are crucial for immigrants to contribute meaningfully to provincial economies through daily spending and labor market participation.
5. Federal Policy Supporting Immigrant Integration:
The federal government's policy of increasing permanent residents during the pandemic by inviting more temporary foreign workers and international students facilitated smoother integration into the labor force for many immigrants.
Recommendations and Pathways:
The report emphasizes the importance of inviting immigrants with in-demand skill sets to maximize economic gains.
Canada's diverse immigration pathways, including the Provincial Nominee Program (PNP), target specific skills needed to address local labor shortages in tech, skilled trades, and healthcare.
Programs like the Atlantic Immigration Program and the Rural and Northern Immigration Pilot provide comprehensive support to immigrants, including settlement services and access to healthcare.
Conclusion: In conclusion, Canada's pursuit of high immigration targets promises significant economic benefits, especially for provinces like British Columbia, the Prairie Provinces, and Prince Edward Island. By strategically leveraging immigration programs and prioritizing in-demand skills, Canada can harness the full potential of immigration to strengthen provincial economies and foster inclusive growth. This approach not only supports economic recovery but also underscores the vital role of immigrants in Canada's future prosperity.
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