The cost of immigration is catching up to the economic benefits in Canada, according to a recent report from the Globe and Mail.
Though Canadian governments have long championed the positive economic effects of immigration, the costs are beginning to create an imbalance as wage discrepancies and employment barriers increasingly block skilled newcomers from obtaining work in their fields.
“The benefits have clearly declined over time […] because people are not earning to the extent that their equivalent criteria or credentials should allow them,” says University of Toronto economics professor Peter Duncan, whose recent co-authored study found that if the government maintains its current selection criteria, but increases by 100,000 the amount of immigrants entering the country, the per capita GDP will actually decrease.
However, if the selection system were to place more emphasis on economic streams of immigration, the entry wages for newcomers would actually increase. Furthermore, higher immigrant ratios produce more innovation and attract other talent from around the world.
However, there remain many barriers to immigrant success in Canada, including underemployment and low wages. The government must address these issues if it hopes to remain competitive in today’s global market.
Source: Globe and Mail