Canada is a country that has long benefited from the contributions of immigrants. Recently, these contributions have become even more significant. Immigration has been a key factor in addressing Canada’s labour shortages and fostering business creation. Over the past two years, the number of unfilled jobs in Canada has dropped by an impressive 39.7%, largely thanks to the influx of immigrants.
Declining Labour Shortages
In the second quarter of 2022, Canada faced a daunting 990,900 vacant job positions. However, by March of this year, that number had fallen to 597,725. This significant reduction highlights the vital role immigrants play in Canada’s workforce. According to Immigration, Refugees and Citizenship Canada (IRCC), the country’s labour force grows every year due to immigration. This growth is crucial, especially given Canada’s ageing population and low birthrate.
Economic Impact of Immigrants
Immigrants contribute to the economy in multiple ways. They fill crucial gaps in the labour force, pay taxes, and spend money on goods, housing, and transportation. These activities stimulate economic growth and support public services. Statistics Canada reports that as of May 2021, immigrants aged 25 to 54 made up more than 36% of workers in accommodation and food services, nearly 38% in transportation and warehousing, over 34% in professional, scientific, and technical services, and over 20% in construction.
Economic Immigration Programs
Several economic immigration programs help immigrants gain permanent residency in Canada. These include the Federal Skilled Worker (FSW) and Federal Skilled Trade (FST) programs, the Provincial Nominee Programs (PNP), and regional development programs like the Atlantic Immigration Program (AIP) and Rural and Northern Immigration Pilot (RNIP).
Through the Express Entry system, candidates are ranked based on a points system called the Comprehensive Ranking System (CRS). Those with the highest scores receive an Invitation to Apply (ITA) for permanent residence. This process ensures that Canada attracts highly skilled workers who can contribute significantly to the economy.
Provincial Nominee Programs
Almost all of Canada’s provinces and territories participate in the Provincial Nominee Programs (PNP). These programs allow local governments to nominate skilled workers based on the specific needs of their economies. Successful nominees can then apply for permanent residence through federal immigration authorities. This system ensures that skilled workers are distributed across the country, benefiting regional economies.
Immigrant Entrepreneurs
Immigrants are not only filling job vacancies but also creating jobs by starting businesses. One out of every three business owners in Canada is an immigrant. This includes 30% of software publishers, 36% of dentists, 40% of data processing and hosting services, 50% of restaurateurs, 51% of computer systems design companies, 53% of grocery stores, and 56% of trucking companies.
The Start-Up Visa Program
The Start-Up Visa (SUV) program is a pivotal initiative for immigrant entrepreneurs. This program allows foreign nationals to come to Canada on a work permit supported by a designated Canadian investor. This enables them to establish their business while their application for permanent residence is processed.
Criteria for the Start-Up Visa Program
The SUV program has specific requirements. Immigrant entrepreneurs must secure a commitment certificate and a letter of support from a designated entity. These entities include angel investor groups, venture capital funds, and business incubators. A designated venture capital fund must invest at least $200,000, while an angel investor group must invest at least $75,000. Alternatively, a designated business incubator must accept the applicant into its program.
Additionally, entrepreneurs must demonstrate proficiency in English or French at the minimum Canadian Language Benchmark level 5. They also need to provide sufficient unencumbered, available, and transferable settlement funds.
Impact of the Start-Up Visa Program
The Start-Up Visa program has been instrumental in fostering innovation and economic growth. By attracting entrepreneurs from around the world, Canada benefits from new businesses and job creation. These start-ups often bring fresh ideas and technologies, contributing to the dynamic and diverse Canadian economy.
Immigrants play a crucial role in addressing labour shortages and driving business creation in Canada. The significant reduction in vacant job positions over the past two years underscores their importance. Economic immigration programs and initiatives like the Start-Up Visa program further facilitate their contributions. By filling gaps in the workforce, paying taxes, and starting businesses, immigrants significantly bolster the Canadian economy. As Canada continues to welcome skilled workers and entrepreneurs, the country can look forward to sustained economic growth and innovation. The impact of immigration is clear: it is a vital component of Canada’s success and prosperity.
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