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Canada's Unemployment Rate Does Not Appear To Be Improving

Last Updated: June 16, 2022

The unemployment rate in Canada has reached a new low of 5.1 percent. In the fourth quarter of 2021, there were 915,500 vacant posts, according to Statistics Canada. This is a 63% increase over 2020. As unemployment falls and job openings grow, there is a surge in demand for workers in Canada. Labor shortages were always a worry in Canada, but they became worse once Covid-19 hit the world. Since the beginning of time, the Canadian economy has been reliant on immigration, as people from all over the world have migrated to the country to work and give economic advantages. People were not allowed to cross borders during the pandemic in order to contain the virus, which caused Canada to suffer owing to a lack of workers.

 

The aging population is the primary cause of Canada’s recruiting problems. Seniors aged 85 and over are growing in number. Despite the COVID-19 pandemic, their population continues to expand faster than the rest of Canada. The aging population will retire eventually, providing room for newcomers, but if immigrants do not arrive, the labor shortage will worsen.

 

With the passage of time, Canada is striving to re-enter the game and attract immigrants to the nation by simplifying and organising the rules and processes, making it easier for individuals to move to Canada without difficulties. Canada has opted to cut down the application approval processing duration so that applicants do not have to wait as long. If you want to migrate to Canada, you may hire an experienced immigration lawyer in Dubai to assist you with the application procedure.

 

Canada’s Attempt To Deal With Labor Shortfall

 

According to the Bank of Canada’s Business Outlook Survey for the first quarter of 2022, 42% of firms intend to increase their investments in machinery and equipment. One of the stated motivations for the increase in investment was to alleviate labor-related limitations through productivity increases. Employers in Canada should invest in educating less experienced workers and reach out to populations with higher unemployment rates, such as young people, immigrants, and seniors who are available to work part-time. As the labor shortage is not going away in a few months, a long-term approach to cope with it is required.

 

Employers in Canada are aggressively searching to replace hundreds of thousands of unfilled positions throughout the country as Canada continues to recover from the pandemic. Because Canada’s robust economic growth is increasingly outperforming the capacity to locate and retain people, immigration is more crucial than ever to power Canada’s economy. Travel restrictions throughout most of 2020 and 2021 delayed the processing of overseas applications, which led to an increase in the size of the processing inventory. To manage this inventory, the Canadian government temporarily suspended invitations to apply for federal high-skilled streams such as the Canadian experience class, federal skilled worker class, and federal skilled trades class. Sean Fraser, Minister of Immigration, Refugees, and Citizenship, said that Express Entry draws will restart in July 2022 to address the labor shortfall that is impeding Canada’s economic development. In addition, individuals will be chosen based on their employment. Canada will choose candidates from among specialists in fields where there is a shortage of workers.

 

Starting in early July 2022, applications for the Federal Skilled Worker Program, Federal Skilled Trades Program, or Canadian Experience Class will be processed within 6 months, according to IRCC. Previously, due to the pandemic, the applicants had to wait much longer. Candidates for the Non-Canadian Experience Class (CEC) Express Entry often had to wait more than 20 months for Immigration, Refugees, and Citizenship Canada (IRCC) to process their permanent residence applications. Permanent residency invites for FSWP applicants were halted in December 2020, while CEC candidates did not receive invitations since September 2021, however, this will change in July 2022. Resuming invitations for these two programs will enable hundreds of thousands of people to achieve their goal of acquiring permanent residence in Canada.

 

Also, foreign students who are in Canada and have a post-graduation work visa that expires between January and December 2022 will be eligible for an extra open work permit of up to 18 months. Minister Fraser says the government is looking at a streamlined, expedited approach for this. These talented and skilled international graduates play a vital role in addressing Canada’s labour shortage, and those nearing the end of their post-graduation work permit are already well-integrated into the labour market of Canada and work in key industries across the country. Tens of thousands are able to successfully transition to permanent residence each year, including more than 157,000 former students who became permanent residents in 2021, with more than 88,000 of them transitioning directly from a post-graduation work permit to permanent status. This additional open work permit will allow applicants to continue contributing to the Canadian economy, helping address the labour shortage while gaining valuable work experience and preparing their Express Entry profiles. Also, applicants who apply for an open work permit while waiting for their permanent residence application to be finalised will be able to get work permits valid until the end of 2024. This will ensure that all permanent residence applications will be finalised before applicants will need to apply to extend their temporary status again.

 

Relocate To Canada Easily

 

There are programs specifically created to assist immigrants. Canada is also enhancing its processing timeframes in order to aid those who have become entangled in the pandemic’s backlog. It is also one of the countries that recovered fast, with most industries trying their best to return to normalcy. Because Canada has so many programs to offer, it may be difficult for a layperson to choose the best one. The most crucial thing to do is to create a solid application, as visa denial may make future travel difficult. Contact ACE’s professional immigration attorneys in UAE for assistance in developing a persuasive application that can turn your immigration dreams into a reality.

 

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