Despite the adverse effects of the Coronavirus pandemic felt the world over, Canada is currently enjoying the lowest unemployment rate. Experts stated there was never any doubt that Canada’s labor market would recover because the workforce experienced a major demographic shift before the pandemic. These shifts are expected to positively affect the Canadian workforce for decades to come.
All economies go through a recession every once in a while. Experts are concerned about the policy provisions for immigrants in the labor market. A growing concern is that a recession would see immigrants experience reduced output in the labor market. Furthermore, immigrants may never get a chance to recover from the recession, so they would have to live with the outcome for the rest of their careers.
This shouldn’t alarm any immigrants because experts believe the Covid recession is different. Immigrants who have recently joined the workforce or are in the process of landing their first Canadian job can rest assured that their future is secured. Let’s analyze a few activities in the labor market that are setting immigrants up for success.
More people are retiring
The baby boomer generation is just about ready to exit the job market for their retirement. This mass exit left labor market vacancies, leading to Canada’s all-time low unemployment rates. According to statistics, the Canadian work market has about twenty million employees. Nine million of these employees are baby boomers. The government estimates that baby boomers will reach retirement age before the decade is out (the Canadian retirement age is 65).
The Canadian government would rely on the income graduates to join the workforce and replace the retiring baby boomers, but that is not the case anymore. The country’s low birth rate is forcing the government to look for talent from other parts of the world. Replacing the baby boomers is particularly important for the Canadian government because they need a sizable workforce to maintain tax flow. Taxes enable the government to provide Canadian citizens with education, health care, and good infrastructure.
A good healthcare system is crucial for Canada, owing to many elderly citizens living in the country. Simply put, Canada’s healthcare system is about to start spending more money than it usually would due to the high number of aging citizens.
Canada is not just relying on immigrants to staff the labor market; they have also tapped into previously under-utilized groups such as women, persons with disabilities, and indigenous people. The government has also shown interest in working with disengaged youth.
Before the pandemic hit Canada, the country relied on immigration to replenish the labor force, a process that is expected to become the new norm. Another concern with the exiting labor market is the knowledge and skill they take with them. Nothing can replace the years of experience they have gained over the years. The only way to fill the knowledge gap is to integrate new talent and skills through talent
