(905) 441 0770 allen@allenehlert.com

Why Immigrants are Crucial for Canada’s Economy

by | December 4, 2023

Many so-called experts claim as Canada’s baby boomers retire, there is a growing need for immigrants to fill the labour market. Actually, no. There are very few well-paying jobs in Canada (and you can’t survive in Canada without a well-paying job or independent wealth) that just cannot find people to fill them. If such situations exist, its usually because of systemic mechanisms that keep Canadians out of these professions rather than a lack of willing, talented Canadians to fill them. Case in point: There is a shortage of doctors in Canada. Yet there are more Canadians studying to be doctors outside of Canada, than there are Canadians studying to be doctors in Canada. This article explores the important role immigrants play in maintaining a strong economy, not through filling job vacancies, but by bringing wealth into Canada and replacing the taxes retiring baby boomers used to pay.

Filling Job Vacancies in Various Sectors, NOT!

With job vacancies in healthcare, trades, and food and accommodation services, immigrants are crucial for meeting the labour demands of these sectors. While skills required may vary, immigrants bring diverse talents and expertise that contribute to the growth and vitality of the Canadian economy. But not so fast, as usually is the case, Canada in many of these situations is looking for immigrants to fill jobs Canadians don’t want. Take nursing for example; long hard hours, difficult working conditions, constant stress, and no work-life balance. So Canadian nurses quit to work for agencies for better pay and more control over their lives leaving a shortage the government hopes immigrants will fill. As far as the trades go, without connections—like your father being in the trade—it’s hard to get an apprenticeship that will lead to becoming a full journeyman. As far as general construction workers go, Canadian colleges have taught Canada’s youth to make sure they are not tricked into low-paying labourer jobs, often called “production associates,” by promises or false contracts that don’t actually lead to apprenticeships, leaving industry with a shortage of strong, young men who will work cheap.

Integration into the Labor Market

The successful integration of immigrants into the labour market is essential for Canada’s long-term economic prosperity. Ensuring that immigrants with accreditation have a good chance of finding work and addressing labour market shortages will benefit both immigrants and the country’s economy. However, given many of the barriers Canadians face when it comes to entering professions, such foreign accreditation may actually give immigrants an unfair advantage as the path to enter a profession in their countries is much easier than in Canada where much of the education system is about weeding people out, rather than educating them for success and entrance into a given career.

Immigration is important for Canada's economy
Immigration is important for Canada’s economy

Upskilling and Reskilling Programs

To fill the labour market gaps, the government has implemented upskilling and reskilling programs to equip Canadian workers with the necessary skills for available jobs. These programs are crucial in ensuring that both immigrants and native workers are well-prepared and equipped for the changing job landscape. However, Canadians continue to be the most educated workforce in the world. Imbalances are usually caused by a disconnect between job requirement and remuneration as employers take advantage of the over supply of candidates.

Incentivizing Business Hiring

Encouraging businesses to hire more workers is another strategy to bring more individuals into the labour market. By offering incentives to companies, the Canadian government can stimulate employment and provide opportunities for immigrants and native workers alike. However, businesses only hire when business is expanding, that can’t happen with a sluggish Canadian economy caused by a terrible tax burden. Governments should not encourage corporate welfare but should invigorate the economy through deep cuts in taxation and a big reduction in massive government administration.

Infrastructure for Economic Growth

Investments in transportation, broadband internet, and affordable housing are vital for supporting population growth and economic development. Access to these essential resources allows both immigrants and Canadian workers to access job opportunities, contribute to the economy, and lead fulfilling lives.

Closing the Wage Gap

Addressing the wage gap between newer immigrants and long-time residents is crucial for immigrants to fully contribute to the economy. Ensuring fair wages and equal opportunities will not only benefit immigrants but also foster a more inclusive and prosperous society.

Supporting Retirement Funds and Economic Stability

The aging population in Canada poses challenges to the economy, with fewer people working and contributing to retirement funds. Immigrants, who are often younger than the average Canadian, play a pivotal role in balancing the aging population by contributing to retirement pension plans and taxes that support healthcare and education.

In conclusion, immigrants are essential for Canada’s economic future. They fill job vacancies, bring diverse skills, contribute to consumer spending, and support retirement funds. By implementing programs to integrate immigrants into the labour market, upskill workers, incentivize business hiring, and provide necessary infrastructure, Canada can ensure a prosperous and inclusive society for all.

Mortgage and Money Radio Logo
Allen Ehlert

Allen Ehlert

Allen Ehlert is a licensed mortgage agent. He has four university degrees, including two Masters degrees, and specializes in real estate finance, development, and investing. Allen Ehlert has decades of independent consulting experience for companies and governments, including the Ontario Real Estate Association, Deloitte, City of Toronto, Enbridge, and the Ministry of Finance.

Lenders’ View: Second Mortgages

Lenders’ View: Second Mortgages. Every lender views second mortgages through a completely different lens of risk, control and structure.

B Lenders Don't Pre-Approve

‘B’ Lenders Don’t Pre-Approve

Discover why Pre-Approval B Lenders offer a fresh start with alternative mortgage options for those with credit challenges in Canada.

Blacklisted Condo

Avoid Blacklisted Condos

A blacklisted condo is a condominium that certain mortgage lenders have categorized as high-risk and are unwilling to finance. Learn the reasons why a condo is blacklisted and what to do about it.

Accumulated Income Payments

Mortgage Term: Accumulated Income Payments

Discover the implications of accumulated income payments and how they indirectly related to mortgages.

Net Worth Program

What is a Net Worth Program?

Learn what a Net Worth Program is and how it assists individuals with substantial net worth to qualify for a mortgage.

RDSP Qualified Investment

Mortgage Term: RDSP Qualified Investment

Discover the implications of an RDSP qualified investment, how it can grow in a tax-deferred manner leading to building wealth and providing a secure home for a disabled Canadian.

Sources of Down Payment

Sources of Home Down Payment

Discover reliable sources for your home down payment in Canada. Learn about savings options, grants, and assistance programs to make homeownership a reality.

Refinanced Mortgages Uninsured

Why Refinanced Mortgages Are Always Uninsured

Discover why refinanced mortgages in Canada are always uninsured and the opportunities refinancing your mortgage provide you.

Recourse Loan

Mortgage Term: Recourse Loan

Discover what a recourse loan is, it’s key characteristics, and how it applies to mortgages, particularly in Ontario (as opposed to Alberta).

Protecting Information

Protecting Your Personal and Financial Information

Discover how Allen Ehlert protects your personal and financial information so you can be secure when applying for a mortgage knowing your information is safe and secure.