A recent report published by Degardan Economic Research highlights the benefits of welcoming skilled newcomers to Canada.
According to the report, "Canada should continue to welcome newcomers who can help fill labor shortages in the construction industry." However, we should also be mindful of the barriers that prevent workers from reaching their full potential. In particular, we should consider how we can reduce discrimination and harassment in the construction industry. ”
This recommendation comes at a time when Canada is experiencing a historic housing affordability crisis, largely due to the fact that demand outstrips supply and cannot meet the needs of a rapidly growing population.
In the third quarter of 2023, Statistics Canada released data showing that Canada's population has reached 40,528,396 people. This represents an increase of 430,635 from the previous quarter and an increase of more than 500,000 since reaching the milestone of 40,000,000 in June 2023.
This poses a challenge to maintaining housing affordability in Canada. The Canada Mortgage and Housing Corporation (CMHC) estimates that Canada will need to build an additional 3.5 million housing units to support the current and growing population.
Meanwhile, the average price of a home in Canada is $657,145 as of December 2023, according to the latest data from the Real Estate Association of Canada. However, in multi-populated cities, such as Toronto or Vancouver, homes often cost more than a million.
Non-permanent residents are not involved in the construction industry
Degardan's report notes that the construction sector is in 15th place among the top 20 employment sectors in Canada (based on the number of people employed in the sector).
In addition, according to data from the 2021 Census, the report found that non-permanent residents (NPRs) and immigrants make up less than 22% of the workforce in Canada's construction industry.
This suggests that there has been little growth since similar data was collected in 2019. At that time, it was found that 21% of new immigrants were engaged in construction careers.
In addition, a recent report by the Bank of Canada found that only "5% of non-permanent residents (or 3% of total non-permanent residents) use construction as their primary job." "This means that non-permanent residents are the fastest growing group in the population, but they are not working in construction.
Cost and productivity are also a factor
The report notes that increased immigration is not the only factor contributing to the housing shortage. For example, the report notes that the cost of building materials is at its highest level in 10 years. This has been impacted by supply chain disruptions during the pandemic and in the current context of high interest rates.
The Canada Mortgage & Housing Corporation estimates that high costs will cause about 40% of residential developers to reduce the number of future projects, while more than 30% will "put new projects aside".
The housing sector is also affected by low productivity. Degardan said that productivity in the sector has been stagnant or declining and made a number of recommendations to increase production to meet demand. One of them is to create a pre-approved building plan directory. This is a strategy that is also supported by Canada's Minister of Housing, Sean Fraser.
A pre-approved Canadian housing plan should reduce the time it takes to obtain municipal approval and financing.
More strategic immigration
Ultimately, Degardan's report suggests that Canada should become more effective in welcoming newcomers to the construction industry. According to the report, in 2022, only 455 new permanent residents became permanent residents through the federal Skilled Trades Program (FSTP). In 2023, there is no Express Entry draw for FSTP candidates.
This view is also reflected in a report by Royal Bank of Canada (RBC), stating that "Canada needs to be more strategic in its selection of immigrants, selecting immigrants with the strongest long-term economic prospects and temporary residents who often become future immigrants, including those outside of highly educated fields." ”
Immigration, Refugees and Citizenship Canada (IRCC) said it is working to bring in skilled newcomers to help sectors facing labor shortages. In May 2023, IRCC introduced a category-based selection draw for Express Entry candidates, which includes candidates with human capital attributes or occupations that are in high demand in Canada. One of these categories is for candidates working in skilled trades. However, IRCC conducted only two draws to invite these candidates, with a total of 2,500 invitations issued for Express Entry candidates with experience in trade occupations.
#Canada##Study Abroad##Immigration##Vancouver##Toronto##Montreal##Calgary##Work##Education##University##Study##蓝领#