In: Accounting
Canada provide various open immigration policy and financial support to refugees.On the world stage, Canada is known for its open and welcoming approach to immigrants and its diverse population. It’s a point of pride for many Canadians. Immigrants are the reason canada’s population isn’t shrinking. If Canada didn’t accept immigrants, the population would shrink due to the low birthrate. In the 1970s Canada’s birthrate dropped below the threshold needed to maintain a steady population.
The point is whether this open immigration policy is
good for Canada or not?
Though there’s debate about the total economic impact of
immigration, typically population growth is needed to maintain a
growing economy. If a country’s population dips, its economic
output usually follows. Fewer workers mean fewer goods and services
can be produced, so economic output shrinks. Currently, Canada’s
economy is growing at a modest rate of 1.5% annually. Without
immigration to prop up population growth, it’s unlikely that Canada
would be able to maintain this level of economic growth. In
addition to providing more manpower, new Canadians also add to
Canada’s total purchasing power. More people with money to spend
means more demand for local goods and services. Without immigrant
Canadians’ labour and purchasing power, Canada would have to
produce more goods and services with fewer workers and rely more
heavily on selling to external markets to continue
growing.
Is it fair to Native born canadians?
The rationale is immigrants are willing to work for less than native-born Canadians, so Canadians are forced to accept lower wages in order to compete with immigrant workers to find jobs. This is not true. Canada’s low unemployment rate means that there’s plenty of work to go around, and many industries are actually experiencing labour shortages. When there are more jobs than workers, employers tend to increase wages to draw in talent. Some employers also seek out and pay a premium for Canadian talent due to their belief that Canadian-born workers require less training to be productive. While there is evidence that immigrants have a lower average wage than people born in Canada, it’s typically because new immigrants find work below their educational level, rather than because they sell their labour below the market rate. There are other factors to consider, as well. For instance, immigrants tend to have less economic mobility, meaning they won’t move to access better paying jobs.
Immigrants fill important gaps in Canada’s job market, ensuring that the demand for skilled workers doesn’t outstrip supply. If a population declines, it’s inevitable that the number of workers entering certain occupations will begin to shrink as there simply aren’t enough new people being born to replace retiring workers. Allowing skilled immigrant workers into Canada offsets extreme labour shortages. One industry where this trend is apparent is in the skilled trades. Few young Canadians are getting into trades professions such as welding, carpentry, electrical repair, and plumbing, leaving a shortage of workers in these fields. As a result, the Canadian government has a program specifically designed to encourage skilled trade workers to immigrate to Canada. A similar pattern is also occurring in other fields such as healthcare and IT.
Though there’s no doubt that immigration leads to some growing pains, overall Canada’s immigrant population brings more to the country than they take. As Canadians, we should be proud that our country is one of the best places in the world to work and attracts people from all over the world.