Immigrants to become key to the economic recovery of Canada after Coronavirus pandemic
The pandemic of Coronavirus is creating havoc all across the world and leaving economic destruction in its wake.
The IMF is predicting that the global economy will diminish by 3% in 2020, as the world is going through the most significant devastation after the Great Depression.
Canada announced that it would want to welcome above 1 million immigrants in the span of 2020-2022 to improve its economic growth, mere days before putting up travel restrictions to curb COVID-19.
At that time, the authorities did not know that the economy all across the world is going to face such a downfall.
Is Canada willing to invite more immigrants?
The current situation is posing a major question to the country, i.e., whether to increase the number of immigrants or cut down the number?
Undoubtedly, Canada has to readjust its immigration plans.
But it would be unwise for the Canadian economy to reduce the number of immigrants, more than necessary, to curb the pandemic.
This is because the country needs immigrants more than ever to balance and maintain its economy.
Why does Canada need more immigrants?
Due to demographic challenges, Canada decided to welcome such a huge number of immigrants to it (300,000 immigrants per year).
The reasons are that Canada has one of the world’s lowest birth rates, and its population is mostly senior citizens.
It is struggling both to increase the birth rate and to fill in the positions in which people are getting retired. In such a situation, immigration becomes the hope of the country.
Since the 1990s, immigration is the major source of Canada’s population growth and will continue to be so until the early 2030s.
Population growth is such a vital factor because of its capacity to fill the labour force. The two major ways to uplift any economy are to fill it with more workers and to use the productivity of those workers optimally.
In the present day, immigration is the major source for all or major parts of the labour needs of Canada in any given year. It would mean that the country would be restraining its economic growth if it starts restricting its number of immigrants.
Canada will witness full economic recovery soon
The economists agree that Canada’s economy will be able to recover once the social distancing norms are lifted.
This would mean that more people will be back to work, including both Canadians and immigrants.
Before the breakage of Coronavirus, the unemployment rate was on a record low, and the country was in good economic shape in the decade after the 2008 crisis. Welcoming more immigrants proved to be the best decision Canada has taken as the economic growth was an all-time high after the decision.
Before the Coronavirus pandemic, the unemployment rate was so low because of the high number of people retiring, causing a huge number of vacancies, as the economy was expanding. This was a huge advantage for both native Canadians and immigrants in the same way.
In the same fashion, both native Canadians and immigrants are going to be benefitted by the Canadian economic rebound after the pandemic gets curbed. In the near future, we can expect that Canada will face workers shortage again. In fact, it may face the shortage more than it has faced before Corona hit the country. This is because many of the Canadians are expected to retire in the coming decade.
The policies made on immigration are always meant to have long-term implications, and this fact should not be ignored even in the crisis time of the Coronavirus.
Immigrants will assist Canada to create more employment after Coronavirus
It is a known fact that the economy of Canada is facing a rough patch, and, in such a scenario, immigrants will play a vital role in uplifting the recovery of the Canadian economy by helping to fill more jobs and also in helping to create new ones.
The research of Statistics Canada represents that immigrants have more potential to start businesses. In its recent studies, Statistics Canada, the foreign entrepreneurs have created one-fourth of the new jobs in the private sector in the span of 2003 and 2013. To say it in other words, the immigrant businesses have created more jobs than they were expected to create.
This creates hope that immigrants will create more jobs, even post-Coronavirus pandemic, for native Canadians.
Immigrants also bring with them good amounts of savings that will help in creating economic activity, which is critical in creating jobs in Canada.
If we take into account the international students, over 600,000 students contribute more than $22 billion every year. This amount assists 200,000 jobs in Canada.
The country has a staggering 8 million immigrants, and these people help the economic growth and employment creation more than the international students.