Canada should be getting more out of immigration
For years, and especially recently, the way Canada deals with and accepts newcomers has given this country a feeling of pride. While other countries work on bans and build walls, we wait for immigrants at airports with teddy bears and parkas.
Before we get too smug about our treatment of immigrants, though, we should remember it wasn’t so long ago that our approach was not so different from that being used around the world today. And there is more that can be done to improve the lives of newcomers to Canada and maximize the benefits for this country.
As a result of many global forces, immigration has become a hot topic here and abroad. Our new working paper, “Immigration in Ontario: Achieving best outcomes for newcomers and the economy,” is an attempt to add quantitative evidence to the growing debate on the economic contribution of immigrations to Ontario and Canada.
When done correctly, immigration pol- icy creates a virtuous circle, wherein the government plays an active role in, and reaps the rewards of, immigrants’ success. Indeed, immigration can and must be more than just a feeling.
Our research indicates that we are leaving a substantial amount of economic growth on the table. If the hurdles immigrants face in finding employment were eliminated, or at least lowered, to unlock the vast economic potential of these newcomers, immigrant incomes would increase by up to $15.2 billion. This would be the equivalent of 2 per cent of Ontario’s GDP, creating economic prosperity, social cohesion and tax revenue that could be used to increase the quality of life for all.
In order to reach this goal, we call on Ontario to take on more economic immigrants in addition to refugees and family reunification immigrants. As usual, Ontario’s ability to control its destiny is being curtailed by the federal government. Our province’s rate of economic immigrants is substantially lower than the national average. As many newcom- ers to Canada choose Ontario as their home, it is time for Ontario to have greater access to economic immigrants.
Steps must be taken to tackle the lagging employment rates found among immigrants, along with the “wage penalty” they often experience.
Our research indicates that a particular focus should be placed on settling immigrants during their first five years in the country, as well as devoting additional resources to female and older immigrants.
Why should we look at the immigration file through an economic lens? Isn’t it enough to treat it as a “feel good” file?
Part of the reason Canada has been able to accept new immigrants is that it has been a positive economic bargain for current residents and citizens, as well as newcomers. Rather than get complacent by looking at the follies of other countries, we need to double our efforts at improving the economic outcomes for immigrants. This will increase the benefits for everyone.
Last week, Foreign Affairs Minister Chrystia Freeland delivered a timely and historic speech in the House of Commons about Canada and our place in the world. She articulated what Canada needs to do to be a “consequential” nation in these times.
In addition, she talked about the United States’ decision to become more protectionist and isolationist as it retreats from the world. She cited climate change and international affairs as two areas where Canada would “step up” to fill the global leadership void, and at the Institute for Competitiveness and Prosperity we believe immigration is another file that should be added to this list.
Canada has done well in this area and has established a global brand for 50 years. This country can become the singular magnet for global talent over the next 10 years if we do it right.