{"id":99080,"date":"2022-05-09T14:20:41","date_gmt":"2022-05-09T18:20:41","guid":{"rendered":"https:\/\/immigration.ca\/immigrant-workers-can-ease-canadas-labour-shortages-and-help-curb-rising-inflation"},"modified":"2022-05-09T14:20:41","modified_gmt":"2022-05-09T18:20:41","slug":"immigrant-workers-can-ease-canadas-labour-shortages-and-help-curb-rising-inflation","status":"publish","type":"post","link":"https:\/\/immigration.ca\/fr\/immigrant-workers-can-ease-canadas-labour-shortages-and-help-curb-rising-inflation\/","title":{"rendered":"Immigrant Workers Can Ease Canada\u2019s Labour Shortages And Help Curb Rising Inflation"},"content":{"rendered":"<p class=\"p1\">Inflation in Canada is reaching record highs driven at least in part by a serious labour shortage that is leading employers to offer higher and higher wages in desperate attempts to outbid one another for the few workers who are available.<\/p>\n<p class=\"p1\">\u201cWages for newly-hired employees are accelerating even as employers are accepting less-qualified workers,\u201d wrote Philip Cross, a senior economist and Munk senior fellow at the Macdonald-Laurier Institute, in December last year.<\/p>\n<hr \/>\n<p class=\"p1\"><b>Read More<\/b><\/p>\n<p class=\"p2\"><span class=\"s1\"><a href=\"https:\/\/immigration.ca\/fr\/canadas-labour-market-fully-recovered-from-covid-19-pandemic-says-bmo-economist\">Canada\u2019s Labour Market Fully Recovered From COVID-19 Pandemic, Says BMO Economist<\/a><\/span><span class=\"s2\"><br \/>\n<a href=\"https:\/\/immigration.ca\/fr\/british-columbia-quebec-and-the-yukon-hit-hardest-by-canada-labour-shortages\"><span class=\"s3\">British Columbia, Quebec and the Yukon Hit Hardest By Canada Labour Shortages<\/span><\/a><br \/>\n<a href=\"https:\/\/immigration.ca\/fr\/alberta-lifts-temporary-worker-restrictions-to-help-employers-meet-labour-needs\"><span class=\"s3\">Alberta Lifts Temporary Worker Restrictions To Help Employers Meet Labour Needs<\/span><\/a><br \/>\n<a href=\"https:\/\/immigration.ca\/fr\/quebec-desperately-seeking-workers-as-labour-shortage-drags-on\"><span class=\"s3\">Quebec Desperately Seeking Workers As Labour Shortage Drags On<\/span><\/a><\/span><\/p>\n<hr \/>\n<p class=\"p1\">\u201cHiring workers at higher pay may seem positive for the economy, but can often translate into lower productivity which raises unit labour costs,\u201d wrote Cross. \u201cThis reinforces the upward pressure on inflation while eroding our ability to compete with firms in the United States.\u201d<\/p>\n<p class=\"p1\">The economist\u2019s words have proven to be prophetic.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<h3 class=\"p1\">Squeeze On Labour Drives Up Wages And Contributes To Inflation<\/h3>\n<p class=\"p1\">When Cross penned his commentary, entitled <i>Tightening Labour Markets Fuel Inflationary Pressure<\/i>s, the country\u2019s unemployment rate was 5.9 percent.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">Prime Minister Justin Trudeau\u2019s government had then just brought in a record number of immigrants, 405,970 new permanent residents in a single year, and was eagerly trying to attract immigrants and <a href=\"https:\/\/immigration.ca\/fr\/how-to-apply-for-canadian-temporary-work-permit\"><span class=\"s3\">temporary foreign workers<\/span><\/a> to come to Canada to fill jobs going begging for a lack of qualified candidates.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">Within two months, Immigration Minister Sean Fraser announced Canada would again try to attract a record number of immigrants this year \u2013 and for the next two as well.<\/p>\n<hr \/>\n<p class=\"p1\"><b>Watch Video<\/b><\/p>\n<p class=\"p1\"><iframe title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/kosXiqfsKCg\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<hr \/>\n<p class=\"p1\">Under the immigration levels plan presented by the immigration minister, Canada plans to welcome 431,645 permanent residents this year, 447,055 next year, and 451,000 in 2024.<\/p>\n<p class=\"p1\">\u201cWe are focused on economic recovery, and immigration is the key to getting there,\u201d said Fraser in February after announcing the latest immigration levels plan. \u201cSetting bold new immigration targets, as outlined in the 2022-2024 Levels Plan, will further help bring the immeasurable contribution of immigrants to our communities and across all sectors of the economy.\u201d<\/p>\n<p class=\"p1\">Three months after Cross warned of the inflationary pressure of too-tight a labour market, Canada\u2019s unemployment rate dropped to only 5.3 percent in March, the lowest level since comparable data started being kept in 1976.<\/p>\n<hr \/>\n<p class=\"p1\"><b>Canada\u2019s Unemployment Rate Falls To Lowest Level In More Than 50 Years<\/b><\/p>\n<p class=\"p3\"><span class=\"Apple-converted-space\"> <img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-99039\" src=\"https:\/\/immigration.ca\/wp-content\/uploads\/2022\/05\/Canadas-Unemployment-Rate-Falls-To-Lowest-Level-In-More-Than-50-Years.png\" alt=\"Canada\u2019s Unemployment Rate Falls To Lowest Level In More Than 50 Years\" width=\"977\" height=\"454\" srcset=\"https:\/\/immigration.ca\/wp-content\/uploads\/2022\/05\/Canadas-Unemployment-Rate-Falls-To-Lowest-Level-In-More-Than-50-Years.png 977w, https:\/\/immigration.ca\/wp-content\/uploads\/2022\/05\/Canadas-Unemployment-Rate-Falls-To-Lowest-Level-In-More-Than-50-Years-300x139.png 300w, https:\/\/immigration.ca\/wp-content\/uploads\/2022\/05\/Canadas-Unemployment-Rate-Falls-To-Lowest-Level-In-More-Than-50-Years-768x357.png 768w\" sizes=\"(max-width: 977px) 100vw, 977px\" \/><\/span><\/p>\n<p class=\"p1\">Source: Trading Economics<\/p>\n<hr \/>\n<p class=\"p1\">Canada now has the tightest labour market in more than half a century. And the country is also experiencing its highest rate of inflation in more than 30 years.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">\u201cIn March, Canadian consumer prices increased 6.7 percent year over year \u2026. This was the largest increase since January 1991 (when inflation hit 6.9 percent),\u201d reported Statistics Canada.<\/p>\n<hr \/>\n<h3 class=\"p1\">Inflation Rises To More Than 30-Year High In Canada<\/h3>\n<p class=\"p3\"><b><span class=\"Apple-converted-space\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-99059\" src=\"https:\/\/immigration.ca\/wp-content\/uploads\/2022\/05\/Inflation-Rises-To-More-Than-30-Year-High-In-Canada.png\" alt=\"Inflation Rises To More Than 30-Year High In Canada\" width=\"906\" height=\"564\" srcset=\"https:\/\/immigration.ca\/wp-content\/uploads\/2022\/05\/Inflation-Rises-To-More-Than-30-Year-High-In-Canada.png 906w, https:\/\/immigration.ca\/wp-content\/uploads\/2022\/05\/Inflation-Rises-To-More-Than-30-Year-High-In-Canada-300x187.png 300w, https:\/\/immigration.ca\/wp-content\/uploads\/2022\/05\/Inflation-Rises-To-More-Than-30-Year-High-In-Canada-768x478.png 768w\" sizes=\"(max-width: 906px) 100vw, 906px\" \/>\u00a0<\/span><\/b><\/p>\n<p class=\"p1\">Source: Statistics Canada<\/p>\n<hr \/>\n<p class=\"p1\">In its Consumer Price Index report for March, the statistical and demographic services agency provided analysis of some of the underlying causes of this inflation.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">Statistics Canada blamed the high inflation rate on soaring housing costs and supply chain woes due to the Russia-Ukraine war which are driving up energy, agricultural, and commodity prices.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">But the impact of severe labour shortages on inflation did not go unnoticed.<\/p>\n<h3 class=\"p1\">By March This Year, Canadian Wages Had Risen 3.4% In Past Year<\/h3>\n<p class=\"p1\">\u201cEmployment continued to strengthen in March, as the unemployment rate fell to a record low,\u201d noted Statistics Canada. \u201cIn March, average hourly wages for employees rose 3.4 percent on a year-over-year basis.\u201d<\/p>\n<p class=\"p1\">Labour is commonly regarded as one of the most significant costs for a business. Manufacturers can expect labour costs, which include not only wages but also benefits, payroll deductions and applicable taxes, to be almost 30 percent of their total costs.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">A service business can expect labour costs to be roughly 50 percent of costs \u2013 and, in some cases, up to as much as 70 percent of costs.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">When wages rise, those businesses have little choice but to pass on those costs or make drastic cuts elsewhere in their operations.<\/p>\n<p class=\"p1\">In many parts of Canada, those pay hikes are rising faster than inflation. In Nunavut, the median hourly wage rose by 12.5 percent in the past year. In Nova Scotia, the increase in median hourly wages was 10 percent, in New Brunswick 8.3 percent, and in the Northwest Territories almost 8.6 percent for the comparable period.<\/p>\n<p class=\"p1\">A big part of the reason for the labour shortages is the retirement of so many baby boomers, the huge chunk of Canadian society born between 1946 and 1964. They\u2019re now aged between 58 and 76 years old and are gradually leaving the workforce, taking with them their education and work experience.<\/p>\n<h3 class=\"p1\">Baby Boomer Retirement A Ticking Time Bomb That Has Exploded<\/h3>\n<p class=\"p1\">In a report released Apr. 28, Statistics Canada noted the impact of the steady stream of boomer retirements.<\/p>\n<p class=\"p1\">\u201cCanada&rsquo;s working-age population has never been older,\u201d Statistics Canada reported. \u201cMore than one in five persons (21.8 percent) are close to retirement age (between 55 and 64 years), an all-time high in the history of Canadian censuses.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">\u201cThe aging of many baby boomer cohorts, the youngest of whom are between 56 and 64 years today, is accelerating population aging. There are challenges associated with an older workforce, including knowledge transfer, retaining experienced employees, and workforce renewal.\u201d<\/p>\n<hr \/>\n<h3 class=\"p1\">People Nearing Retirement Outnumber Those Old Enough To Enter Labour Market<\/h3>\n<p class=\"p3\"><span class=\"Apple-converted-space\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-99069\" src=\"https:\/\/immigration.ca\/wp-content\/uploads\/2022\/05\/People-Nearing-Retirement-Outnumber-Those-Old-Enough-To-Enter-Labour-Market.png\" alt=\"People Nearing Retirement Outnumber Those Old Enough To Enter Labour Market\" width=\"974\" height=\"660\" srcset=\"https:\/\/immigration.ca\/wp-content\/uploads\/2022\/05\/People-Nearing-Retirement-Outnumber-Those-Old-Enough-To-Enter-Labour-Market.png 974w, https:\/\/immigration.ca\/wp-content\/uploads\/2022\/05\/People-Nearing-Retirement-Outnumber-Those-Old-Enough-To-Enter-Labour-Market-300x203.png 300w, https:\/\/immigration.ca\/wp-content\/uploads\/2022\/05\/People-Nearing-Retirement-Outnumber-Those-Old-Enough-To-Enter-Labour-Market-768x520.png 768w\" sizes=\"(max-width: 974px) 100vw, 974px\" \/>\u00a0<\/span><\/p>\n<p class=\"p1\">Source: Statistics Canada.<\/p>\n<hr \/>\n<p class=\"p1\">Employers cannot expect Canadian-born workers to resolve these labour shortages anytime soon. There just aren\u2019t enough children being born in Canada right now to make up for those boomers hitting retirement age.<\/p>\n<p class=\"p1\">\u201cFrom 2016 to 2021, the number of children younger than 15 grew six times slower than the number of persons aged 65 and older,\u201d reports Statistics Canada.<\/p>\n<p class=\"p1\">There are also fewer people aged 15 to 24 years of age who are likely to enter the workforce soon than there are boomers nearing retirement age.<\/p>\n<h3 class=\"p1\">Immigrants Rejuvenate Workforce And Help Alleviate Massive Labour Shortages<\/h3>\n<p class=\"p1\">In a rapidly-aging workforce, immigration has a rejuvenating effect on the population, notes Statistics Canada.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p class=\"p1\">When immigration to Canada dropped to just under 185,000 new permanent residents in 2020, the share of young adults in the country\u2019s population fell because immigrants and temporary residents are often young adults in their twenties or thirties when they arrive in Canada.<\/p>\n<p class=\"p1\">Employers hoping to hire a foreign national can avail themselves of this international talent and labour through the\u00a0<a href=\"https:\/\/immigration.ca\/fr\/visa-de-travail-canadien-travailler-au-canada\"><span class=\"s3\">Temporary Foreign Worker Program<\/span><\/a>\u00a0(TFWP), and; the\u00a0<a href=\"https:\/\/immigration.ca\/fr\/international-mobility-program\"><span class=\"s3\">International Mobility Program<\/span><\/a>\u00a0(IMP).<\/p>\n<p class=\"p1\">Under normal circumstances, the\u00a0<a href=\"https:\/\/immigration.ca\/fr\/canada-work-permit-global-talent-stream\"><span class=\"s3\">Global Talent Stream\u00a0<\/span><\/a>(GTS), a part of the (TFWP), can lead to the granting of Canadian work permits and processing of visa applications within two weeks.<\/p>\n<p class=\"p1\">Employers can also bring in foreign nationals to fill available positions through the\u00a0<a href=\"https:\/\/immigration.ca\/fr\/canada-express-entry-immigration\"><span class=\"s3\">Express\u00a0Entry\u00a0system<\/span><\/a>, which receives immigration applications online.<\/p>\n<p class=\"p1\">Applicants who meet eligibility criteria submit an online profile known as an Expression of interest (EOI), under one of three federal immigration programs or a participating provincial immigration program, to the\u00a0Express\u00a0Entry\u00a0Pool.<\/p>\n<p class=\"p1\">The candidates\u2019 profiles then are ranked against each other according to a points-based system called the\u00a0<a href=\"https:\/\/immigration.ca\/fr\/comprehensive-ranking-system-crs\"><span class=\"s3\">Comprehensive Ranking System<\/span><\/a>\u00a0(CRS). The highest-ranked candidates are considered for ITAs for permanent residence. Those receiving an ITA must quickly submit a full application and pay processing fees within a delay of 90 days.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inflation in Canada is reaching record highs driven at least in part by a serious labour shortage that is leading employers to offer higher and higher wages in desperate attempts to outbid one another for the few workers who are available. \u201cWages for newly-hired employees are accelerating even as employers are accepting less-qualified workers,\u201d wrote&hellip;<\/p>\n","protected":false},"author":16,"featured_media":99053,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3415,4859],"tags":[5292,71635,71295],"class_list":["post-99080","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-immigration-au-canada","category-lactualite-canadienne","tag-canada-immigration-fr","tag-canada-inflation-fr","tag-canada-labour-shortages-fr","category-3415","category-4859","description-off"],"acf":[],"_links":{"self":[{"href":"https:\/\/immigration.ca\/fr\/wp-json\/wp\/v2\/posts\/99080","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/immigration.ca\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/immigration.ca\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/immigration.ca\/fr\/wp-json\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/immigration.ca\/fr\/wp-json\/wp\/v2\/comments?post=99080"}],"version-history":[{"count":0,"href":"https:\/\/immigration.ca\/fr\/wp-json\/wp\/v2\/posts\/99080\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/immigration.ca\/fr\/wp-json\/wp\/v2\/media\/99053"}],"wp:attachment":[{"href":"https:\/\/immigration.ca\/fr\/wp-json\/wp\/v2\/media?parent=99080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/immigration.ca\/fr\/wp-json\/wp\/v2\/categories?post=99080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/immigration.ca\/fr\/wp-json\/wp\/v2\/tags?post=99080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}