Why immigrants are set to have a bright future in Canada’s labour market

Why immigrants are set to have a bright future in Canada’s labour market (1)

The immigrants and the people born in Canada are equally about to benefit from the massive increase in Canada’s population. This may look strange that Canada is taking pleasure in its least possible unemployment rate, given the pandemic period.

Despite that, there was a possible doubt if the job market would be able to recover and improve, given the highest shift in the demographics that were changing the workforce of Canada even before the pandemic and is said to renew by the next decade.

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One of the significant concerns examined from the perspective of the immigration policy is; how a downturn impacts the job market performance of the immigrants who acquire permanent residence in the period of economic recession. According to the research, such cases may experience a negatively impacted job market outcome for as long as they live and work in Canada.

This is shocking to the economy of Canada at the beginning of the pandemic, and this country is looking forward to inviting the top levels of immigration in its history.

More number of retiring workers in Canada

The primary reason Canada has enjoyed its least possible unemployment rate before the recession of the pandemic is because of the baby-boom generation from Canada’s workforce. There are about 9 million baby boomers among 20 million workers in the whole of Canada.

Within the next decade, these baby boomers will come to Canada’s retirement age of 65. More individuals are retiring, building a massive gap in the job market. From the historical perspective, Canada has been capable of completely replacing all the retirees with the young graduates from Canada who are completing education and starting to work, but this no longer is the case. The low birth rate in Canada means it must depend on other ways of talent and skills to replace its retiring workers.

Replacing the retiring workers is essential to keep the economy running. This explains why immigration is so crucial to Canada’s economic success. Before the pandemic, they comprised up to 100% of Canada’s annual labor force growth on a few occasions, and this will become the norm over the next decade.

More determined selection procedure

The first one is to change to an environment with a competitive selection procedure for talented and skilled immigrants. The government, territories, and provinces have renewed their selection procedure in the last years to cover the human capital factors demonstrated by the research to give a powerful economic result for the immigrants.

More number of immigrants selected within Canada

A new shift has been building the number of permanent residents selected within Canada. The territories and provinces are selecting more in-Canada registrants through the Provincial (PNP). Before the pandemic began, the overseas immigrants were 70% under the category of Express Entry but, in the last year, this calculation fell to 30% with Immigration, Refugees and Citizenship Canada (IRCC) depending on more on the candidates in Canada to attain the targets of the Immigration levels amidst the disruptions that were created during the pandemic such as the restrictions during travel.

More investment by the Canadian government to support newcomers

Another important consideration is the IRCC’s growing investment in immigrant settlement services like language training and workforce. These particular services are provided to the immigrants before they arrive. It gives them valuable knowledge and encourages them to help accelerate the settlement procedure as soon as they land in Canada.


When all the above factors are taken under consideration, an individual will feel the benefit of the downturn caused by the pandemic should bring out an output of minor job market damage for the newcomers than the recessions that happened prior. Compared to the past, Canada has a tough job market with a competitive selection procedure, choosing in-Canada candidates, and spending more expenses on the success of immigrants.

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