Literature Review on Immigration

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Economic impact of immigration to Canada
Literature Review According to Li, (2003), “Immigration is an international issue that involves the migration of people from one country to another on a permanent basis” (Li 2003, p. 1). The major factors which would influence a person to immigrate include family planning and the role of government policies, the desire for better wages and economic stability, as well as a cleaner environment allowing for better living conditions. The act of reuniting with family may also be a driving force which encourages immigration. Moreover, one may immigrate with the wish to change one 's surroundings by adapting a new life, being given the opportunity to 'start again '. In extreme cases, immigration can be a result of persecution; freedom of religion or expression are not accepted equally in all countries. As stated by Li, “immigrants today are attracted to the highly developed regions of the world because of the material affluence and economic prosperity of these regions, and because of the resulting occupational opportunities and financial rewards for individuals” (Li 2003, p. 3). In other words, one of the strongest factors that attract immigrants are the benefits of economic improvements and high living standards which are available in developed countries. Canada 's current population growth already depends almost entirely on immigration. Statistics Canada has shown that, "between the year 2001 and 2006, Canada’s population grew at an average annual rate of approximately 1%, mainly owing to strong immigration” (Statistics Canada, 2008). In addition, Statistics Canada estimates that “by the year 2030, the death rate will exceed the birth rate, and with a decreasing fertility rate, immigration would be the only growth factor for Canada 's population” (2008). This is a result of an aging population, in which the baby boomers are reaching retirement, and the country cannot expect to have a high fertility rate from many of its citizens. To add on, Statistics Canada further indicates, “following current trends, projections show an annual increase of 386,400 people by 2061, which is made up of 346,800 net immigrants and 39,600 net new births. Only about 10 per cent of growth will be due to new births" (Statistics Canada, 2008). Hence, immigration is the strongest factor responsible for keeping up Canada’s population due to the fact that without immigration, the natural fertility rate contributes little to the total population growth. Due to the aging population, Bain et al. (2002) state that “Canada will face difficult years during the early twenty-first century as more and more baby boomers become seniors and the dependency load increases” (Bain et al, 2002, p.169). Thus, the existence of a largely unfilled job market may cause a rise in immigration. Similarly, in the article “Why Canada needs a flood of immigrants” (2013), it is asserted that for every Canadian senior citizen, there are 4.2 working aged Canadians, but that ratio will be cut in half by the year 2031 (The Globe and Mail, 2013). With less people paying taxes, the slow growth of population, and labour shortages, immigration cannot completely cure the population problem on its own, but it may help to alleviate the symptoms. Regarding Canada’s labour market in the future, Statistics Canada (2013) estimates that from the year 2016 to 2026 , Canada’s labour force growth rate will decrease and is projected to be less than 1% (Statistics Canada, 2013). Projections from Human Resources and Skills Development Canada (HRSDC) indicate that in order to satisfy replacement demand based on retirements, deaths and emigration, there will be a need for approximately 4.4 million jobs in the coming decade (Kustec, 2013). Similarly, Biles et al. (2011) says that, "as Canada’s population ages and its fertility rate continues to drop, immigration has become increasingly important as a potential mechanism to facilitate economic development and adjustment. In addition, immigration has been positioned as a way of responding to labor market gaps and [exiting] migration from Canada’s regions" (Biles et al., 2011, p. 57). In other words, immigration is an essential element for Canada’s largely increasing demand of labour market. For instance, according to Friesen (2013), “the shortage of skilled labour in the Alberta oil sands and Saskatchewan potash mines has become a national issue...a similar lack of people is plaguing the ambitious but underdeveloped secondary cities of Ontario, and in Atlantic Canada a third of the population will be over 65 in less than two decades” (Friesen, 2013). Friesen also believes that Canada needs to dramatically increase the immigration levels that fall in the economic category, which include skilled workers, provincial nominees, those with prior Canadian experience, entrepreneurs, investors, and so on (2013). Immigration, however, to some Canadians, is often seen as helpful but not dispensable to Canada’s future. Li (2003) pointed out that “long time residents also react at the first sign that newcomers are reducing their entitlements or competing with them for economic and social benefits” (Li, 2003, p.11). He also indicated, “the undocumented immigrants are in a vulnerable position subject to exploitation and abuse, and they often provide a source of cheap labour for developed countries (p.7). To add on, International Business Times (2013) asserts the number of illegal immigrants in Canada is expected to rise by the year 2015, due to the new four year work permit rule that attempts to reduce the over-dependence of Canadian employers on the Temporary Foreign Worker Program, according to Canada 's Immigration News Source (International Business Times, 2013). Illegal immigration is often seen as negative to the economy because illegal immigrants do not pay income tax and yet, they still use basic facilities provided by the government. Aside from undocumented immigrants, even the legal immigrants are believed to be a threat to long term residents in Canada. According to Becker, (2001), “trade unions fear that competition from immigrant labour will result in lower wages...Many believe that the welfare state attracts immigrants who mainly seek government benefits and contribute little to production. Other groups worry about the effect of immigration from Third World countries on the racial and ethnic mix of their populations” (Becker, 2001). On the contrary, Li (2003) argues that “the social worth of immigrants is largely evaluated as their ability to augment the country’s productivity so those already in the country can benefit from immigration. Therefore, immigrants at the very least cannot be burdens to those already in the country" (Li, 2003, p.11). Those who agree with the benefits that immigration will bring to Canada, such as Li, claim that, “advanced capitalist countries such as the U.S., Canada, and Australia are benefiting from international migration, especially from draining the highly trained human capital from developing regions of the world” (Li, 2003, p. 3). Correspondingly, he also points out that “enlarging immigration does not only affect Canada’s population and labor force; it can also enrich Canada economically and culturally by bringing technical skills, linguistic diversity, international experiences, as well as investment capital and entrepreneurship” (p. 77). Comparatively, Friesen also asserts that, “when immigrants arrive, they not only fill gaps in the work force but pay taxes and spend money on housing, transport and consumer goods. Productive capacity increases and there is a ripple effect across the economy. Studies show that their offspring tend to be among the country 's best-educated and initiative-taking young people” (Friesen, 2012). Thus, the advantages that immigration brings are significant; new ideas and beliefs, technical skills, culture and religion. On a counter argument, Statistics Canada (2008) observed that, "established immigrants —those who had lived in Canada for between 11 and 15 years—had more difficulty finding jobs reflecting their educational attainment in 2006 than they did in 1991" (Statistics Canada, 2008). In other words, immigrants tend to be underpaid, and many are unable to acquire work which they are qualified for. In addition, Statistics Canada also says that, “during this 15-year period, the proportion of long-term immigrants with a university degree in jobs with low education requirements, such as clerks, truck drivers, salespeople, cashiers and taxi drivers, rose steadily” (2008). Correspondingly, Friesen (2013) notes that, “immigrants earn only about 60% as much as the Canadian-born, whereas in the late 1970s it was nearly 90%, according to research by McMaster economist Arthur Sweetman and former StatsCan director Garnett Picot (Friesen, 2013). This means many new settling immigrants are over qualified for the jobs they perform, and there are some difficulties in recognizing their credentials. However, he later indicates, “after 10 years in Canada, the immigrant earnings start to approach those of Canadian-born. Among those in prime working years, immigrants are nearly 60% more likely to have a university degree than those born here” (2013).

There are some difficulties in conducting the research as the Canadian government announced that it will be taking a ‘temporary pause’ in accepting Federal Skilled Worker applications, and erased all the backlog applications before the year 2008 (CIC News, 2012). Instead, large numbers of foreign temporary workers were brought into Canada annually with a four year work visa. In the case, “RBC publicly apologizes to employees affected by outsourcing arrangement”, Nash P. noted that, “according to Immigration figures, the number of temporary foreign workers in Canada as of December 1st was 338,189, more than double the figure seven years earlier. In March, Toronto’s jobless rate stood at 8.4%, well above the 7.2% national average” (CBC NEWS, 2013). In other words, under the foreign temporary worker policy, thousands of people are coming into Canada each year regardless of the high unemployment rate today. Similarly, Grant (2013), asserts that, “there are now 6.5 unemployed people for every job opening in the country, compared with 6.1 a year earlier, Statistics Canada data showed this week. Nearly 1.4 million Canadians are jobless, a slight rise from a year ago.” (Grant, Globe and Mail, 2013). Now the question is, how will the boost of temporary workers influence Canada’s economy? Grant continued, “while economists and researchers agree the program has sparked a range of negative side effects, they say it’s tough to quantify the precise effect on the labour market, and on the economy. But in the long run, it leaves the country with workers who are less trained, with less experience and fewer opportunities” (2013).

In conclusion, Friesen (2013) says that, “temporary workers lack the stability to set down roots and build communities, and are often separated from their families. After four years they 're required to go home, but there are estimates of a growing group, perhaps a few hundred thousand, who have overstayed their visas and now live undocumented in Canada” (Friesen, 2013). He believes that permanent migration is far more desirable than the rapid expansion of the temporary work force, and replacing temporary workers with permanent immigration would be a more stable solution for Canada’s economy.

Despite the obstacle conducting this research, it is evident that immigration brings many advantages to Canada’s society and economy. Francis concludes, “the arguments which are in favor of large scale immigration believe that population growth always enhances economic growth, and Canada should rely on immigration to help solve the aging and baby boomers problems. Immigration also maintains Canada’s population growth, since a sustainable population growth seems to be essential and vital to economic development. Furthermore, immigration will overcome the negative demographic effects of Canada’s aging population with its pressure on government services such as health care and senior pensions. Bringing more immigrants into the country helps improve the relationship between Canada and other countries worldwide, which could result in more international trade. The counter arguments include fearing that visible minorities will outnumber the native ‘European Canadians’, and bringing immigrants to the country costs taxpayers more money to support them with services such as health care and education, and immigration will cause more Canadian’s to be unemployed (Francis, 2002).

Works Cited Bain, C., Colyer J., DesRivieres D., Dolan S. (2002). Transitions in Society: The Challenge of Change. Canada: Oxford University Press. Francis, D. (2002). Immigration: The Economic Case. Toronto, ON: Key Porter Books Li, P. S. (2003). Destination Canada: Immigration Debates and Issues. Canada: Oxford University Press. Biles, J., Burstein, M., Frideres J., Tolley E., Vineberg R. (2011). Integration and Inclusion of Newcomers and Minorities Across Canada. Montreal & Kingston: Queen’s Policy Studies Series, McGill-Queen’s University Press. Becker, G. S. (2001, May 27). How Rich Nations Can Defuse the Population Bomb. Business Week. Retrieved April 30, 2013, from: http://www.businessweek.com/stories/2001-05-27/how-rich- nations-can-defuse-the-population-bomb Beltrame J., Paddon D. (2013, April 11). RBC Publicly Apologizes to Employees Affected by Outsourcing Arrangement. Financial Post. Retrieved April 25, 2013, from: http://business.financialpost.com/2013/04/11/rbc-apology-outsourcing/

CIC News. (2012, July). Canada Still Open For Immigration. Retrieved May 1st, 2013, from: http://www.cicnews.com/2012/07/canada-open-immigration-071626.html

Friesen, J. (2013, January 10). Why Canada needs a flood of immigrants. The Globe and Mail. Retrieved May 1st, 2013, from: http://www.theglobeandmail.com/news/national/time-to-lead/why-canada- needs-a-flood-of-immigrants/article4105032/?page=all International Business Times. (2013, February 2). Illegal Immigration Is Expected To Rise in Canada By 2015. Retrieved May 1st, 2013, from: http://ca.ibtimes.com/articles/430779/20130202/immigration-canada-new-rule.htm
Kustec, S. (2013, June). The Role of Migrant Labour Supply In the Canadian Labour Market. Citizenship and Immigration Canada. Retrieved May 1st, 2013, from: http://www.cic.gc.ca/english/resources/research/2012-migrant/documents/pdf/migrant2012- eng.pdf

Omidvar, R. (2012, May). Changes to Immigration Policy Will Affect Nearly All Aspects of Canadian Life. The Globe and Mail. Retrieved May 2nd, 2013, from: http://www.theglobeandmail.com/news/national/time-to-lead/changes-to-immigration-policy- will-affect-nearly-all-aspects-of-canadian-life/article4106002/ Payton L. (2011, October 20). Cut immigration applications to fix backlog, Kenney says. CBC News. Retrieved April 26, 2013, from: http://www.cbc.ca/news/politics/story/2011/10/20/pol-kenney- immigration-cut-applications.html

Statistics Canada. (2003). The Immigrant Labour Force Analysis Series: The Canadian Immigrant Labour Market in 2007. (Catalogue number 71-606-XWE2008003). Retrieved April 20, 2013, from: http://www.statcan.gc.ca/daily-quotidien/080513/dq080513a-eng.htm

Statistics Canada. (2003). Perspectives on Labour and Income: Immigrants’ Education and Required Job Skills. (vol. 9, no. 12 (Catalogue number 75-001-XWE). Retrieved April 20, 2013, from: http://www.statcan.gc.ca/daily-quotidien/081222/dq081222b-eng.htm

Statistics Canada. (2013, January 9). Study: Projected Trends to 2031 For the Canadian Labour Force. Retrieved May 1st, 2013, from: http://www.statcan.gc.ca/daily-quotidien/110817/dq110817b- eng.htm

Statistics Canada. (2008, January, 25). Population growth in Canada. Retrieved April 25, 2013, from: http://www.statcan.gc.ca/pub/91-003-x/2007001/4129907-eng.htm

The Globe and Mail. (2012, September 27). Rethinking immigration: The Case for the 400,000 Solution. Retrieved May 1st, 2013, from: http://www.theglobeandmail.com/news/national/time-to-lead/rethinking-immigration-the-case- for-the-400000-solution/article2421322/?section=2&

Cited: Bain, C., Colyer J., DesRivieres D., Dolan S. (2002). Transitions in Society: The Challenge of Change. Canada: Oxford University Press.  Francis, D. (2002). Immigration: The Economic Case. Toronto, ON: Key Porter Books  Li, P Biles, J., Burstein, M., Frideres J., Tolley E., Vineberg R. (2011). Integration and Inclusion of Newcomers and Minorities Across Canada. Montreal & Kingston: Queen’s Policy Studies Series, McGill-Queen’s University Press.  Becker, G. S. (2001, May 27). How Rich Nations Can Defuse the Population Bomb. Business Week. Retrieved April 30, 2013, from:  http://www.businessweek.com/stories/2001-05-27/how-rich- nations-can-defuse-the-population-bomb  Beltrame J., Paddon D CIC News. (2012, July). Canada Still Open For Immigration. Retrieved May 1st, 2013, from: http://www.cicnews.com/2012/07/canada-open-immigration-071626.html Friesen, J  International Business Times. (2013, February 2). Illegal Immigration Is Expected To Rise in Canada By 2015. Retrieved May 1st, 2013, from: http://ca.ibtimes.com/articles/430779/20130202/immigration-canada-new-rule.htm Kustec, S  Payton L. (2011, October 20). Cut immigration applications to fix backlog, Kenney says. CBC News. Retrieved April 26, 2013, from: http://www.cbc.ca/news/politics/story/2011/10/20/pol-kenney- immigration-cut-applications.html Statistics Canada Statistics Canada. (2008, January, 25). Population growth in Canada. Retrieved April 25, 2013, from: http://www.statcan.gc.ca/pub/91-003-x/2007001/4129907-eng.htm  The Globe and Mail