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Henry Lotin's avatar

From my economic research desk: Many salient and timely comments. Two additional considerations to add.

1. Drop in GDP per capita is related to volume of new arrivals not quality.

All new arrivals make less than those in the country 2-3 years or longer regardless of skill level. A 2%+ growth rate over consecutive years can and has overwhelmed output per person gains elsewhere in economy, even among immigrants in Canada 5+ years.

2. Immigration Canada does a very poor job identifying the skills of new international arrivals. Skills or "intended occupation" is not asked of asylum seekers, students, special temporary entry (Ukraine, Hong Kong), and all spouses and dependents. Most workers and principal permanent residency applicants are asked for "intended occupation", and many if not most answer what they believe will give them the best chance to acquire a visa, not skills acquired in their home countries than may be relevant to the local work force. This is especially evident for skilled trades. The survey of new arrivals need to improve to better target training and counselling. Services that, as you correctly point out, Immigration is cutting rather than enhancing when it is needed most to assist new arrivals that are "underemployed".

My C.D. Howe Intelligence memo on the issue can be found here. See my own Substack and LinkedIn for more details and related research.

https://cdhowe.org/publication/henry-lotin-ottawa-has-no-process-determine-skills-half-all-migrants/

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