Why immigrants are set to have a bright future in Canada’s labour market || VO Visas

More Canadian workers retiring

The first reason for this is the exodus of baby boomers from Canada’s workforce. This exodus helps explain why Canada enjoyed its lowest unemployment rate ever prior to the COVID recession, and has achieved another historic low in the unemployment rate despite the pandemic continuing to impact the Canadian and global economy.

More competitive selection process

One is the shift to a more competitive selection process for skilled immigrants. The federal government and provinces and territories have transformed their selection criteria in recent years to account for human capital factors demonstrated by research to result in stronger economic outcomes for immigrants. Under the Express Entry Comprehensive Ranking System (CRS) for example, candidates who are young, well-educated, fluent in English and/or French, with professional work experience, and other bonuses such as having Canadian education and/or work experience, are awarded a higher CRS score which increases their chances of obtaining permanent residence and ultimately succeeding in the Canadian labour market.

More immigrants selected from within Canada

Another major shift has been the increasing number of permanent residents selected from within Canada. Prior to the pandemic, immigrants overseas comprised some 70% of those who landed under Express Entry but last year this figure fell to 30% with Immigration, Refugees and Citizenship Canada (IRCC) relying more on in-Canada candidates to achieve its immigration levels targets amid pandemic-related disruptions such as travel restrictions. It remains to be seen whether IRCC will rely more on selecting immigrants overseas or in Canada after the pandemic, we do know Immigration Minister Sean Fraser’s mandate letter asks him to identify more immigration pathways for in-Canada candidates. In addition, provinces and territories are increasingly selecting more in-Canada candidates via the Provincial Nominee Program (PNP) and other streams.

More Canadian government investment to help newcomers

A third major consideration is IRCC’s increased investment in immigrant settlement services such as workforce and language training. IRCC now spends some $2 billion per year on such services compared to about $350 million per year twenty years ago. These services are also delivered pre-arrival to give immigrants useful information and supports to help expedite the settlement process once they arrive in Canada.


When all these factors are considered, one is able to better feel at ease that the COVID-induced recession should result in less labour market scarring for newcomers than prior recessions. Compared to the past, Canada has a historically tight labour market, a more competitive selection process, is selecting more immigrant candidates from within the country, and is spending more money to help immigrants succeed.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store


Vo Visas is a registered Immigration Consultancy Service. With a team of experienced migration agents and Case managers, Vo Visas offers valuable support…