As the Canadian economy recovers, immigration is expected to rebound significantly in 2021
As the labor market comes to life and strict public health restrictions related to COVID-19 are relaxed, immigration to Canada is expected to rebound rapidly in the second half of 2021.
This is good news for those hoping to come to Canada as part of the Federal Skilled Worker Program, the Federal Skilled Trades Program, or the category of economic programs and provincial affairs under the Provincial Nominee Programs.
The latest positive indicators for the Canadian economy come from the June Labor Force Survey released on Friday, June 9.
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“As economic restrictions in much of Canada began to ease, the labor market responded with strong employment gains concentrated in sectors where the restrictions were most penalizing,” wrote Liam Daly. , economist at the Conference Board of Canada.
“Improvements in several high-contact service industries have spurred growth in part-time employment and allowed for welcome growth in employment for youth and women,” Daly wrote. “As the measures continue to ease, the stage is set for an acceleration in the labor market recovery over the coming months.”
The Canadian economic think tank notes that employment in Canada is now less than 1.8 percent of its pre-pandemic levels.
Employment increases by 230,000
“The June Labor Force Survey showed a rebound in the labor market, in which total employment increased by 230,000,” Daley wrote. “The reopening of the economy underway across Canada suggests that the labor market has reached an inflection point beyond wave three and into a period of recovery marked by rising employment in some of the most important industries. hard hit in the economy, such as high contacts. service industries. “
During the pandemic, strict travel restrictions to curb the spread of COVID-19 have slowed Canada’s population growth rate, underscoring the importance of immigration to the country.
Canadian population estimates for the fourth quarter of 2020 were released by Statistics Canada in March of this year. They showed the massive impact of the pandemic on the growth of the Canadian population through the slowdown in immigration.
“International migration has accounted for more than three quarters of total population growth since 2016, reaching 85.7% in 2019,” the report says.
“Following border and travel restrictions to curb the spread of COVID-19 in March 2020, that percentage fell to 58%. The population increase due to international migration in 2020 was more than 80% lower than it was in 2019. ”
Ottawa remained optimistic about immigration throughout the pandemic
Throughout the pandemic, however, Ottawa has remained optimistic about immigration and has increased its immigration targets to maintain the country’s population growth.
As part of Ottawa’s new plan, Canada plans to welcome more than 1.2 million newcomers between 2021 and 2023, including 401,000 new permanent residents to Canada this year, 411,000 in 2022 and 421,000 in 2023 .
Before the coronavirus pandemic, the previous plan set targets of 351,000 in 2021 and 361,000 in 2022.
“Immigration is essential to get us through the pandemic, but also for our short-term economic recovery and long-term economic growth,” Mendicino said. “Canadians have seen how newcomers play a disproportionate role in our hospitals and nursing homes and help us keep food on the table.
“As we look to the recovery, newcomers are creating jobs not only by giving our businesses the skills they need to thrive, but also by creating businesses themselves,” he said. “Our plan will help address some of our most acute labor shortages and grow our population to keep Canada competitive on the world stage.
With border restrictions limiting international travel, Immigration, Refugees and Citizenship Canada (IRCC) has launched several new streams to increase the number of immigrants and has moved to a fully digital online process to speed up the processing of applications.
The labor force is growing and Canadians are looking for work again
Besides stronger employment figures, there are other signs of growing confidence in the labor market.
In its June Labor Force Survey, the Canadian government’s statistical analysis branch reported that nearly 170,000 workers entered the workforce in June, bringing the participation rate to 65.2 percent. its highest level since the start of the pandemic.
Canadians are looking for work again as they see the risk of COVID-19 in the country has decreased as vaccination programs reach their goals and public health restrictions are lifted.
In June, employment increased by 72,300 in Quebec, 116,900 in Ontario, 42,100 in British Columbia and 13,800 in Nova Scotia.
“These gains offset declines in Saskatchewan by 1,200, Manitoba by 6,400 and Prince Edward Island by 1,400,” Daly wrote. “In the other provinces, New Brunswick, Newfoundland and Labrador and Alberta, employment has remained essentially stable.
The trend strongly suggests that the Canadian economy is heading for a full recovery.
“As immunization rates continue to rise, there is reason to expect improvement in the coming months as provinces are able to escape the cycle of tightening and easing of restrictions and instead, to continue progress towards a full reopening, ”Daly wrote.