Author: Azadeh Haidari-Garmash, RCIC
Canada's New Immigration Workforce Target
Immigrants and refugees are set to comprise a significant portion of Canada's workforce in a bid to address labor shortages
On This Page You Will Find:
- New Immigration Targets
- Context and Historical Comparison
- Challenges in Employment and Immigration
- Future Implications for Canada's Workforce
Summary:
Canada has announced a new target for immigrant and refugee participation in its labor force, aiming to have them comprise at least 25% of the workforce. This policy seeks to address ongoing labor shortages while maintaining a sustainable immigration rate. Despite a reduction from pandemic-era levels, the target remains substantially higher than historical figures. The policy comes amid efforts to manage temporary immigration and a challenging job market, particularly for Canadian youth. The new target aligns with broader efforts to recalibrate Canada's immigration levels to meet economic needs while ensuring community capacity and resource availability.
In a significant policy move aimed at bolstering its labor market, Canada has set a new target to have immigrants and refugees make up at least 25% of its workforce. This decision, unveiled in a recent report by Immigration, Refugees and Citizenship Canada (IRCC), underscores the federal government's commitment to addressing the country's persistent labor shortages while balancing community and service capacities IRCC Departmental Plan.
Historically, the proportion of immigrants in Canada's labor force has been on an upward trajectory, with a notable peak of 29% during the pandemic. This latest target, although slightly reduced, is still significantly higher than the figures from previous decades, such as 22.6% in 2011 and 21.5% in 2006 National Post. Comparatively, the United States reports a 19.2% foreign-born labor force, mirroring Canada's statistics from two decades ago National Post.
Amid these developments, Prime Minister Justin Trudeau has raised concerns about the surge in temporary immigration, which now accounts for 7.5% of the population, a marked increase from 2% in 2017 Global News. Furthermore, the Liberal government has signaled intentions to reduce overall immigration, with a focus on sustainable levels National Post.
Despite these reductions, Canada's targets for both temporary and permanent residents remain elevated compared to pre-pandemic figures. The government aims to decrease the proportion of non-permanent residents to 5%, which, although lower, still represents a 60% increase over pre-COVID levels. The IRCC has set a target of 367,000 to 436,000 admissions for the next fiscal year, down from 471,808 in 2023 but significantly above the 341,000 admitted in 2019 National Post.
The job market in Canada continues to grapple with challenges. As of April, the national job vacancy rate was 2.8%, the lowest since October 2017, with 501,300 total job vacancies Statistics Canada. Meanwhile, youth unemployment stands at 11.2%, the highest outside of COVID-19 lockdowns since the mid-1990s National Post.
In response to these labor dynamics, many companies have started to relax job requirements to fill open roles. A recent report indicates that 86% of hiring managers in Canada have waived certain job criteria to address staffing shortages Express Employment Professionals.
The government's recalibrated immigration targets aim to strike a balance between economic needs and societal capacities, ensuring that newcomers have access to necessary resources such as jobs, social services, and housing. This strategy not only addresses labor shortages but also enriches the Canadian culture and economy with diverse contributions from immigrants and refugees.
