A reflection on immigration policy: two years after Adjusting the Balance.


Source: Maytree Conversations.
By Naomi Alboim, Maytree Senior Fellow and Adjunct Professor, School of Policy Studies, Queen’s University
Naomi AlboimWhen I wrote Adjusting the Balance: Fixing Canada’s Economic Immigration Program, published by Maytree, I argued that the federal government was making incremental changes to immigration policy, which together represented a radical negative shift in immigration policy, without debate, without consultation and without the benefit of a national framework.
Two years later – things are worse, not better.
When we wrote the paper in 2009, the federal government had limited the Federal Skilled Worker (FSW) Program to applicants with experience in 38 occupations or a job offer. We argued that Canada’s dynamic, knowledge-based economy needs a much broader range of occupations and skills. The federal government’s own evaluation of the FSW Program in 2010 (PDF) found that, historically, those immigrants chosen for their human capital have higher incomes than those selected because of their occupation.
Yet, this month the government announced that it would continue to limit applicants to those with job offers or on a list of occupations (now a shorter list of 29). A maximum of 10,000 applications will be considered for processing until July 2012. Within this 10,000 cap, each of the 29 occupations is also capped at 500 applications.
Instead of increasing the number of FSWs, the government has continued to give priority processing to Provincial Nominees and Temporary Foreign Workers, at the expense of the Federal Skilled Worker Program.
In other words, they are continuing to place limits on those selected under the FSW Program despite the fact that they have the highest incomes and best long-term job prospects of all immigrants to Canada.
To its credit, the federal government is reviewing the current point system for Principal Applicants within the FSW Program. They appear to be taking into account the findings of their evaluation, to improve labour market outcomes for these immigrants even further. This could include allotting more points for demonstrated language capacity, youth and experience in the skilled trades, as we recommended in 2009. However, these changes will be for naught if the numbers and proportion of new applicants continue to be reduced and restricted to 29 specific occupations.
As well, there are ongoing concerns with a system that continues to prioritize temporary foreign worker applications.
Most temporary foreign workers arriving to Canada are highly skilled. But, among other concerns, our 2009 report highlighted the problematic growth in the Pilot Project for Occupations Requiring Lower Levels of Formal Training, suggesting that it should be abolished. These workers are filling jobs that aren’t necessarily “temporary” but rather harder to fill, for example in meat packing plants and in hotel janitorial services. Rather than improving the wages and working conditions for these jobs, reaching out to unemployed and under-represented groups already in Canada, or bringing in more family class members and refugees to fill those jobs on a permanent basis, the government has chosen to continue bringing in significant numbers of temporary foreign workers under this “pilot” program.
While they have the right to most of the same protections as other Canadians and permanent residents under provincial employment legislation, temporary foreign workers filling low or unskilled jobs are more vulnerable to abuse because of language barriers, lack of knowledge about their rights, limited access to agencies that can help them (especially when they are working in remote parts of Canada), and inadequate enforcement of employment legislation. Further, temporary foreign workers are not eligible for federally funded settlement services.
Regulatory changes effective April 2011 introduced penalties for employers who exploit temporary foreign workers but they still do not address the root problems of this program. Instead, they rely on vulnerable workers themselves to initiate complaints who are unaware of their rights and fear loss of employment or deportation. The four-year time limit for temporary foreign workers to legally remain in Canada serves to penalize them further. It also serves to keep them in limbo for a long period of time, with no access to services or permanent residency, and the additional rights and protections that come with that status.
A dramatic sea change in Canada’s immigration system, policies and priorities is under way, including:
  • a significant reduction in the number of sponsored parents and grandparents to be admitted to Canada;
  • a delay in the awarding of permanent resident status to sponsored spouses with a concomitant withholding of rights and access to services, resulting in increased vulnerability;
  • recently re-tabled legislation proposing that refugee claimants be placed in detention for one year if they arrive by “irregular” methods to Canada;
  • the legislation also proposes the draconian treatment of claimants who are determined to be bona fide refugees despite their “irregular” arrival (including delayed access to travel documents, permanent residence status, and family reunification); and
  • a reduction in federal funding for settlement programming.
All of this suggests there is a need for real public debate about what kind of country we want to be and what kind of immigration policy best leads us there.

Will Canadian Retirees Be Supported By Future Immigrants?

The flags of Canada and the United States of A...Image via Wikipedia
In a report released by Schroder Investment Management North America Inc on Thursday, July 21, two authors revealed that Canada will be facing a “baby bust” as its aging population goes into retirement.
In the report, co-authored by Virginie Maisonneuve and Katherine Davidson, the two authors describe how the future GDP of Canada will not be able to support the aging population unless significant changes take place in the labor market.
Specifically, the authors point out that the only way Canada will be able to survive the lower GDP growth and surge in retiring baby boomers will be “to increase immigration or raise participation rates, especially of older workers.”
The authors point out that an increase in immigration will not solve all of the Country’s financial problems caused by the effects of an aging population.
In addition to immigration changes, the country will still need to increase productivity in order to support the high costs of having an aging population. The situation threatens Canada’s reputation for “superior health status”.

Canada and the Aging Population

The report also points out that:
–> From 2020 onward, the country’s population growth is going to exclusively come from immigration. The report states that there will be entire segments of the Canadian economy that will be completely dependent upon foreign workers.
–> With such an older population, the financial and healthcare sectors of the economy will encompass a larger share of the country’s GDP. The report predicts that education, manufacturing, construction and retail will all decrease.
Why would an investment firm care about Canada’s aging population? Well, the report was released as a way to gauge what the future will look like in the Canadian marketplace, and where investment opportunities will exist.
Virginie Maisonneuve explains:

Demographic analysis is part of a coherent macroeconomic and thematic road map that serves as a framework to our stock analysis and selection. Many of our current holdings listed in Canada are resource companies. They will need to adapt to the demographic challenges that we have highlighted in this report in order to ensure success and shareholder value.”
The authors also seem to take pleasure in pointing out a comparison between Canada’s elderly pension system vs. that of the United States.  The report points out that Canada is fiscally responsible enough to have already started strategically positioning resources and making the necessary changes to meet this future financial challenge.
It also points out that Canada’s pension plan is expected to be solvent by 2050…in direct contrast to the United States Social Security system, which many experts believe will start experiencing financial shortfalls in 2016, and complete insolvency by 2039.
Of the report out of Schroder Investment is at all accurate, then elderly Canadian citizens are likely going to be dependent upon foreign workers to serve their needs. And, if the U.S. social security crisis does really come to fruition, then many of those immigrant workers will probably consist of elderly Americans, trying to survive the collapse of the U.S. Social Security system.

Leave us a message

Check our online courses now

Check our online courses now
Click Here now!!!!

Subscribe to our newsletter

Vcita