Canada Relies on Temporary Residents to Meet the Labour Demand

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Samarpita Goswami
Updated on Mar 31, 2022 06:00 PM IST

The burgeoning reliance of Canada on the temporary workforce to meet its market demands is making the workers vulnerable and failing to provide wage growth or stability to the businesses, according to Reuters' analysis of federal immigration data.

Canada Relies on Temporary Residents to Meet the Labour Demand

According to Reuters' analysis of federal immigration data, in the last ten years, the number of immigrants living and working in Canada on a temporary basis is higher than the number of people who have been given permanent resident status. The doubling of the number of international students who study in Canada has increased the number of temporary residents and the number of people coming on post-study work permits has also quintupled.

The burgeoning reliance of Canada on the temporary workforce to meet its market demands is making the workers vulnerable and failing to provide wage growth or stability to the businesses.

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Canada offers time-limited visas to temporary residents some of whom are associated with specific employers. After the expiry of the visas, they are expected to return to their countries of origin. Though there are ways to become permanent residents yet there are obstacles to accomplishing it. The temporary visas are a quick fix to solve the shortage of labour and potentially avoid political fallout, analysts point out.On the other hand, the permanent residents have a better position to demand improved working conditions.

Economic equality can be promoted by prioritising the immigration of the high-skilled workers will result in a downward thrust on the highest-paid salaries and the salaries of the low-paid workers will be increased. The immigrants from Asia, Latin America, and the Caribbean complain that they are left to exploitation because of their dicey immigration status.

The immigration system of Canada gives priority to highly skilled people, but there is demand for low skilled workers too. The fourth quarter of 2021 showed that the job vacancy rate was 5.3.% and the food and accommodation sector displayed the highest number of vacancies at 10.8%.

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In 2021, Canada declared to give permanent residencyto 90,000 people and till now only 23,880 have been given that status. Canada is now on the lookout for ways to solve the continuous and enduring gap in the labour market.

Source: The Economic Times

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