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Immigration Plan of Canada is an Affirmative Step for 2018 - 2020

April 2018, 12
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The Canadian Immigration Summit 2018 is directly focusing on methods to make the immigration system of Canada strong.

Putting Canada on the correct path

The federal government presented a Multi-Year Immigration Plan for the country in November 2017. The forthcoming study of Conference Board of Canada has made a finding that this immigration plan, has put Canada on the correct path. Moreover, it will help the country to diminish the negative financial and economic impact arising out of a senior population and reducing birth rate.


Firstly, this plan has a target to annually admit 290,000- 340,000 newcomers spread over the years. The report also shows that immigration is ever more important for the economic growth of the country. In 2017, the growth of the economy was three percent. It was owing to more spending by consumers, and a fine housing market. This growth greatly increased the employment. Furthermore, owing to these facts the unemployment rate in Canada was record low. As a result there was an acceleration of the labor market challenges of baby boomers who are retiring.


The present  trends  in demography say that immigration is a major factor for the substantial growth of real GDP of Canada. These projections are for the year 2030. Owing to the immigration only there is a growth in the population of Canada. There is a prediction that the natural increase, when worked out by removing the figures of deaths from births, will be negative in the future. This is already happening in Atlantic Canada. As a result there are many economic and fiscal difficulties in the region.

Growth in labors important

Notably, the major objective to support the blooming economy is not population growth. Furthermore, the important objective here is to have a labor force which facilitates growth of the economy. These workers will pay enough taxes and help to fund the social priorities. Presently, the priorities are health care and education. Besides, Labor force, the other component is productivity growth which can increase the economic output of Canada. Also this will lead to an improvement in living standards.

Interestingly, immigration is the reason for the 90 percent growth of labor force. It will soon become 100 percent when baby boomers leave the workforce. There is an expectation that Canada will annually need 400,000 immigrants in the future in 2034 for overall economic growth.  This scenario will happen when the natural increase will be negative.

The relationship between economic growth and immigration is complex. Moreover, there is the issue of ensuring the success of new professionals in the workforce. A study of 2016 reveals that immigrants lose $12.7 billion in wages every year owing to employment barriers. Such challenges need removal so that there is a better outcome for immigrants in the economy.

Accordingly, Canada is taking a positive step in this direction. The Express Entry system is dynamic and permits employers to hire foreign immigrants. It works fast and they can reach Canada within six months.

Furthermore, the fast processing standard helps the employers to use the immigration system. This also helps the immigrants to get jobs in their respective fields. The PNP is now important and has become permanent in 1998. It serves as a platform for the immigrants to match with the needs of employers in various provinces and territories of Canada.

Besides, there are some other developments also. Now there is more pre-arrival information and there is settlement support for newcomers. There is a choice of immigration pathways for temporary residents. International students and temporary foreign workers combine well into the economy.

Improving performance of immigrants in the labor market

The challenges in using the immigration system can be identified and made easier. There can be a Trusted Employer Program to make the selection process quick. The Canadian employers must be fair to the immigrants. They must appreciate the fact that immigrants provide a competitive edge. They are not only good in skills, but are also motivated.

The immigrants need a scope to do their best. A proper focus on improving their performance will go a long way to solve many problems. Moreover, it will give great economic benefits to Canada.

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