A new report suggests the average family debt in Canada has now hit the $100,000 mark.
In addition, says the Vanier Institute of the Family, the debt-to-income ratio measuring household debt against income, is a record 150 per cent.
This means that for every $1,000 in after-tax income, Canadian families owe $1,500.
The Institute says in 1990, average family debt stood at $56,800, with a debt-to-income ratio of 93 per cent.
Just as the debt ratio has climbed, the savings rate has slid downward.
In 1990, says the Institute, Canadian families managed to put away $8,000 for a savings rate of 13 per cent. Last year, the savings rate had fallen to 4.2 per cent, averaging just $2,500 per household.
Other data compiled by the Institute shows the number of households behind in mortgage payments by three or more months climbed to 17,400 in the fall of 2010, up nearly 50 per cent since the recession began.
Image via WikipediaEmployment and industry groups are reacting negatively to a government plan to cut substantially the number of visas issued for federal skilled workers this year.
New figures obtained through Access to Information show the government will cut all economic class visas by nearly seven per cent, and federal skilled worker visas specifically by 20 per cent, in 2011.
"The notion of reducing the number of skilled workers we aim to take in 2011 is certainly a move in the wrong direction given where we expect the economy right across the country to be heading," said Elsbeth Mehrer, director of research and workforce strategy for Calgary Economic Development.
"This is a time when we need to ensure we're ramping up to meet worker demand," Mehrer told CBC News Tuesday. "And while we had some great success last year in terms of having our highest ever number of immigrants coming into the country, we need to make sure we keep the foot on the gas to meet labour demand in the future."
In question period Monday, Immigration Minister Jason Kenney noted that in 2010 Canada hit a record high by welcoming "281,000 permanent residents to Canada, 106,000 more than the Liberals did shortly after they came to office and cut immigration levels."
And when asked about his department's cuts to another category, visas for parents and grandparents, Kenney responded by emphasizing his long-standing effort to boost economic immigration.
"There are tradeoffs. And this government is focused on the priority of Canadians, which is economic growth and prosperity," he said. "Mr. Speaker we need more newcomers working and paying taxes and contributing to our health-care system. And that's the focus of our immigration sytem."
The problem is, the government isn't robbing Peter to pay Paul — it's robbing them both, says Richard Kurland, a Vancouver immigration lawyer.
Kurland, who obtained the target numbers through Access to Information, notes the government is not boosting economic visas overall. In fact, across all categories (including federal skilled workers, provincial nominees, Quebec skilled workers, and the Canadian experience and business classes) there will be 6.6 per cent fewer economic class visas issued this year over last.
"The 2011 targets dramatically show the substantial reduction in federal skilled workers and a slight increase in provincial selection," Kurland says. "We really should be targeting more skilled workers to make up for Canadians' inability to demographically reproduce. We need the young workers to pay the taxes to support the pensions for Canada's aging population." Vancouver immigration lawyer Richard Kurland obtained details about planned cuts to overseas visa targets through Access to Information.(CBC) Officials at Citizenship and Immigration caution that the targets found in the documents do not represent the final number of immigrants to be accepted this year. That's because the targets are for overseas visas only and do not include inland claims.
However, experts say the extent of the cuts — specifically to parents and grandparents and skilled worker categories — mean there will undoubtedly be significantly fewer immigrants accepted in those categories this year.
Michael Atkinson, head of the Canadian Construction Association, says the cuts to the federal skilled worker category won't affect the construction industry directly, because those companies have had trouble for years getting workers through the point system, which is heavily skewed toward post-secondary education and language proficiency.
But Atkinson is still concerned about the government's motivation for cutting the economic visas overall.
"If the motivation behind reducing those target levels is, 'Well gee, the economy is improving, we don't need as many skilled workers,' then I would suggest that is a huge mistake, given the fact that just our aging workforce, our aging population, our low fertility rate shows us and other industries that it is only going to get worse.
"We are facing bigger challenges in the future with respect to building our workforce and training them than we ever have before," Atkinson says.
He adds his industry expects to face a shortfall of 400,000 workers by 2018 if government policies — both federal and provincial — don't move with the times.
Atkinson notes the government has taken a step in the right direction by opening a review process of the point system for federal skilled workers.
'We are facing bigger challenges in the future with respect to building our workforce and training them than we ever have before.'—Michael Atkinson, Canadian Construction Association
The irony, according to Mehrer, is that the government has managed to reduce wait times for federal skilled workers through a new system of ministerial instruction brought in in 2008. Workers under the old system still wait for years for a decision, but new applications that fit one of a list of 29 occupations are being processed in seven to eight months.
That success is leading many employers to believe the government's current motivation is a political one, rather than a policy decision.
"It's really difficult to say, but certainly the speculation I hear from employers here is that it's based on political pressure that may be coming from other parts of Canada, where the unemployment remains higher and where the understanding of the labour market dynamics in Alberta and in much of the west are less clear," Mehrer says.
She adds that the economic recession is no argument for the cuts, as things are improving rapidly out west.
"We're already starting to see re-employment of Canadians and Albertans who lost their work during the recession," Mehrer says.
"I'm already hearing from some industries who recognize that their talent pools are shrinking in terms of the skill set they are going to need. So as much as they may not be in foreign markets right now looking for talent, we certainly expect that by the latter half of this year there will be certain skill sets we simply won't have available in the province." Louise Elliott is the immigration reporter for CBC Ottawa. She can be reached atlouise.elliott@cbc.ca.
Image via WikipediaKota Kinabalu:Canada is alternative for Sabah students planning affordable and world-class education, abroad, said State Education Exco Member Datuk Masidi Manjun.
"Normally when we think of studying overseas, it's either UK or AustraliaÉI think it's time for us to emphasise the need to find new places.
"We need to make smart decision and not just a decision where to send our children É Canada is far but education wise, it is a potential country for our students to seek knowledge.
"We need to find new environment and environment shape the way we are and the way we think. It's not just about passing grade É We should look beyond our normal thinking," he said at the Canadian Education fair 2011 in Hyatt Hotel, Tuesday.
The High Commission of Canada in Malaysia hosted the Education Fairs in the State capital in hope of attracting more Sabahans to choose Canada as their first choice of education.
Masidi stressed that students and parents must first think of financial aspect as a whole and secondly the education environmental aspect and last but not least the affordability before choosing to study abroad.
"Studying in UK or even in Australia is much expensiveÉbut Canada offers affordable education compared to other countries.
Also the good thing about studying there is that it is legal to work while you are studying," he added.
Senior Trade Commissioner of Canada High Commission in Malaysia Douglas Bingeman said Canada offers flexibility with respect to employment and immigration.
"For students interested in a job during their study it is possible to work up to 20 hours on or off-campus in most Canadian provinces.
Even for students who do not need to work this provides an excellent opportunity to experience Canada and bring back this valuable experience to Malaysia."
He added that over 600 Malaysian students chose to study in Canada every year.
"More than 70,000 Malaysians have studied in Canada since the days of the Colombo Plan, many of them from East Malaysia.
He also said that most Malaysians who studied in Canada applied for courses such as engineering, business and actuarial science, among others.
"Average annual tuition fees are approximately $13,000 (about RM40,000). Most universities in Canada are public and partly funded by the various levels of government.
"The quality of education is also very high and importantly, consistent from one institution to another.
Indeed four Canadian universities ranked in the top 100 in he last Webometric world university ranking," he said.
He further stressed that Canada remains "a safe and welcoming multi-ethnic place to live and the lifestyle is second to none", adding quality of life indicators consistently put Canada at or near the top this regard.
Image via Wikipedia
Vancouver immigration lawyer Richard Kurland obtained details about planned cuts to overseas visa targets through Access to Information. (CBC)
