Immigration Canada

Self-Made Millionaires, Immigrant Millionaires Common In Canada, BMO Study Finds

English: UBS Investment Bank offices at 299 Park Ave (Photo credit: Wikipedia)

The American dream may be more alive north of the border than it is in the land of liberty, according to results of a new study.

Almost half of Canada’s millionaires are either immigrants or first-generation Canadians, compared to just one-third of wealthy Americans, BMO Harris Private Banking said Thursday.

The study on the make-up of high-net-worth Canadians (those with investable assets of $1 million or more) found the majority -- 67 per cent -- of members of the diverse group are self-made millionaires. One in five attributed at least some of their wealth to inheritance.

About 24 per cent of millionaires are immigrants to Canada and another 24 per cent described themselves as first-generation Canadians with at least one parent born outside this country, BMO found.

“For generations, many have considered Canada to be a place that provides opportunities for those who are willing to move here and contribute to the growth of the country. The findings of this study confirm this long-standing belief,” said Alex Dousmanis-Curtis, senior vice-president and head of BMO Harris Private Banking.

“Today’s high-net worth Canadians, whether they were born here or have adopted Canada as their own, prove that hard work and an entrepreneurial spirit can result in prosperity and success.”

The report from BMO’s wealth management division found that one-third of high net worth individuals are women. That figure has grown significantly since 2010, when just 21 per cent of members of the group were women. That still pales in comparison to the 68 per cent of male affluent Canadians.

And just 40 per cent of those wealthy women in the latest study generated their own wealth while only one-third said they managed their own investments, compared to 59 per cent of men, suggesting wealth management is still considered a man’s space. Many women feel the industry doesn’t try to cater to their needs.

Some believe both the underrepresentation of women in banking and their perceived lower level of interest in money matters are symptoms of the same historical issue –women being shut out of the financial boys’ club.

“Today’s women are controlling more and more wealth in Canada, and that number is increasing by eight percentage points annually,” said Dousmanis-Curtis.

“From a private banking perspective, it’s clear that the face of wealth in Canada is changing and there is no longer one stereotypical type of high-net worth client. As an industry, we need to anticipate and exceed the unique needs of this diverse client base if we are to succeed.”

Overall, the bank said the results were encouraging and showed that wealth in Canada can be acquired in many ways and regardless of gender or birthplace.The findings are similar to a study by the Conference Board of Canada and others that suggest income mobility is more attainable in Canada than the U.S. However, the think tank also pointed out that income inequality is still a troubling problem in this country.

The report indicates one major link between opportunity and wealth: Higher education levels suggested a greater likelihood of higher wealth, indicating that 80 per cent of affluent Canadians have at least an undergraduate degree and 46 per cent completed a graduate or professional degree.

Another interesting finding in relation to the U.S. was that Canada’s millionaires tended to be older than their American counterparts, with 24 per cent of high net worth Americans under the age of 40, compared to just four per cent of Canadians.

The online survey was conducted by Pollara between Mar. 28 and Apr.11 with a sample of 305 Canadian adults who had $1 million or more in investable assets. While online surveys cannot be ascribed a margin of error because they are not a random sample of the population, the bank said the margin of error for a sample of that size is plus or minus 5.6 per cent, 19 times out of 20. The U.S. figures were from a similar survey during the same period of time among 482 adults with $1 million or more in investable assets.

Source: http://www.huffingtonpost.ca/2013/06/13/self-made-millionaires-immigrants-canada_n_3435347.html

Canada Looks to Lure Away Skilled U.S. Workers

English: Population distribution of Canadians (Stats Canada 2006) (Photo credit: Wikipedia)

By Meera Louis

Paul Thomas could hardly believe it when a Canadian recruiter called about a position as a mechanic in British Columbia. His annual income had dropped to $40,000 a year from $100,000 as business slowed at the Atlanta car dealership where he worked. He’d filed for bankruptcy, and his house was in foreclosure when the headhunter saw his résumé online. “My wife and I were excited,” says the 45-year-old. “Auto mechanics don’t get approached by recruiters, so it was sort of nice being catered to.”

The headhunter sent Thomas online videos about the heavy-truck dealership that wanted to hire him, and his prospective employer flew him in for four days for a fuller picture of life in Prince George. Last March the company hired him under an immigration program for skilled workers. Scoring the job, which pays about $90,000 a year and comes with government-provided health care, seemed like “I scratched a lottery ticket,” says Thomas. Within a month he had a work permit.

Canada has a high rate of unemployment—12.3 percent in some regions. It also has tens of thousands of open jobs nationwide for plumbers, electricians, and other skilled workers. Employers have a hard time getting potential hires to go where the work is. “Canadians just aren’t willing to leave their provinces,” says Kathleen Kischer, who recruited Thomas. So companies, particularly in Western Canada, are tapping headhunters to scourMonster.com (MWW), LinkedIn (LNKD), and even Craigslist in search of Americans and other foreigners with the right résumés—a task made easier by the national government.

This past winter it launched a fast-track immigration program for 43 trades, promising to process work papers within 12 months for applicants who speak English or French and have two years’ experience in their field. Among the most wanted: ironworkers, welders, oil and gas well drillers, and heavy-duty equipment mechanics. “We always point out to Canadians that even though there are too many unemployed Canadians, there are also too many unfilled jobs,” Immigration Minister Jason Kenney said during a speech in April.

Canada is opening the door to Americans at the same time the U.S. Congress is battling over whether to let in more skilled workers. In Canada last year, 160,617 immigrants were granted permanent residency because of the economic value they brought, while 64,901 became residents via family ties, according to the government. In the U.S., with a population about nine times as big as Canada’s, 680,799 immigrants became residents through family sponsorships in fiscal 2012, and only 143,998 obtained residency based on their employment, federal data show.

It can take a decade for an employed immigrant to get a U.S. green card; in Canada a skilled worker can obtain permanent residency within 18 months, says Richard Kurland, an immigration lawyer in Vancouver. Foreigners can also apply for residency on their own, without an employer’s help—another big difference from the U.S. Word of the perks has spread all over the world. In 2011 the U.S. was only the fourth-largest source of immigrants to Canada, behind the Philippines, China, and India.

Kael Campbell, a headhunter in Victoria, says Canadians are benefiting from the influx of foreigners. “The hiring of one American John Deere (DE) or Caterpillar (CAT)mechanic with 10 years of experience can result in the direct employment of eight to nine Canadians” that are less skilled, Campbell says. His firm landed jobs in the mining and equipment industries for 30 immigrants last year, up from 18 in 2011.

Going north solved Thomas’s financial problems. His wife is now a cashier at a Costco (COST). They’ve made friends. “Home will always be the States,” says Thomas. That won’t stop the couple from applying for permanent residency in their new country. “Canada was my saving grace,” he says. “I believe I will stay here for a while.”

The bottom line: Canada gives preference for visas to immigrants who’ll add to its economy—a contrast with the U.S., where family ties trump employment.

Louis is a reporter for Bloomberg News in Washington.

Source: http://www.businessweek.com/articles/2013-05-16/canada-looks-to-lure-away-skilled-u-dot-s-dot-workers