Taxi and rideshare drivers pick up and drop off fares at Union Station in Toronto on August 24, 2022.Christopher Katsarov/Globe and Mail
Claudia Hepburn is the CEO of Windmill Microlending, a national charity that provides affordable loans. immigration.
Canada has a rich population of internationally trained professionals as permanent residents, but they often fail to thrive. Many people settle for low-skill jobs, while others choose to retire. According to a recent report from Statistics Canada, 15 per cent of immigrants leave Canada within 20 years of arriving.
The country must address the barriers that prevent immigrants from contributing fully to the economy.
According to a 2019 RBC report: Income gap between immigrants and their Canadian-born peers It has grown over 250% over the past 30 years. About 40 percent of this gap is thought to be attributable to immigrants working in jobs below their education level. We all know, as we’ve met countless times with the engineers and doctors who drive for Uber, that the proliferation of highly skilled immigrants in the gig economy is a national embarrassment.
Governments should take steps to ensure that highly educated immigrants contribute at their highest skill level. RBC estimated that resolving immigrant underemployment could increase Canada’s gross domestic product by approximately $50 billion annually and help revive the country’s productivity.
How can we achieve this? Ontario was the first province to ban Canada’s discriminatory work experience requirements in regulated occupations, a good first step. We need state governments and regulators to address the unnecessary complexity associated with recertification. We must also address the economic barriers that prevent skilled immigrants from achieving full employment and productivity.
Lack of access to affordable credit poses an insurmountable barrier to achieving full employment for many immigrants. Canadian financial institutions are competing to offer newcomers their first bank account, but banks are rarely willing to offer career loans. Although our banking system is strong to avoid risk, a lack of credit available to new entrants is hampering Canadian productivity.
Although skilled immigrants don’t need free tuition, they often need a loan to start their career in Canada. Affordable loans are essential to cover costs associated with recertification, obtain Canadian certification, and purchase tools and vehicles needed for employment. With banks showing little interest in this market, experienced nonprofit lenders that cater to the needs of skilled immigrants could, with support, scale up to address this national disparity. be.
The Canadian dream for future Canadians, and for those of us born in Canada, is that Canada welcomes people from all over the world, integrates them well, and creates great economic benefits for newcomers and their families, as well as for Canada. is to produce. That dream is only possible if immigrants can overcome barriers to full employment.
Canada at the moment Although we have been fortunate to receive record numbers of immigrants, that good fortune will not last long. Countries where we rely most on immigration are seeing lower birth rates and, in some cases, increased GDP and opportunity.
Countries such as Australia, New Zealand and Switzerland are rapidly growing productivity, increasing per capita wealth and improving the quality of life for immigrants, and are increasingly being recognized as more attractive destinations for resettlement. .
Unless Canada makes some overdue changes to support the productivity of newcomers, the high volume of international talent seeking permanent residence here is likely to be temporary. This is an opportunity that cannot be wasted.