Newcomers in Canada have higher employment rates than Canadian-born individuals.

According to a recent study by Desjardins on the impact of federal immigration targets, new immigrants in Canada are more likely to be employed than those born in the country. This is due to two major trends – an increase in the employment rate of new immigrants since 2016 and a gradual decline in the employment rate of Canadian-born individuals. New immigrants are often of core working age and selected for their human capital factors, making them ideal for Canada’s labor force. Meanwhile, the aging population of Canada means a consistent group of retirees exit the workforce every year, which is why immigration is crucial for the country’s population growth and economic benefits.

With the bulk of new immigrants projected to be of core-working age and economic class programs being the primary source of immigration, Canada’s population is estimated to grow much younger. This demographic change is expected to bring a host of economic advantages to the country, such as boosting potential GDP growth and reducing inflationary pressures.

While there may be concerns about the ability of Canada to handle such a large wave of newcomers, there are reasons to be optimistic about positive labor outcomes. Job vacancies are at record highs, and newcomers with in-demand skills and desirable human capital factors are more likely to have favorable outcomes in the Canadian labor market. Overall, Canada’s immigration targets are expected to have positive outcomes for the country both societally and economically.