For example, in March 2023, Mikal Skuterud, a professor of economics at the University of Waterloo and director of the Canadian Labour Economics Forum, questioned the reality of Canada’s perpetually touted labour shortage – in The Globe and Mail no less (the G&M is a booster of the Century Initiative and host of its annual webinar). Skuterud argued that satiating tight labour markets with cheap labour undermines labour productivity and the average living standards of the population. He suggested that not coddling the business lobby by expanding wage-subsidy programs or easing access to low-skilled temporary foreign workers, including foreign students, is good for worker productivity, workers’ wages and average economic living standards.
Previously, in an interview with the Hub in November 2022, Skuterud had stated that data of “pro-immigration outfits like Scotiabank and the Conference Board of Canada…find that increasing immigration rates are going to lower GDP per capita. They don’t like to say that out loud, but that’s what their data shows.”
In the interview, Skuterud says that expanding immigration has “distributional effects” with “winners and losers.” “The winners are easy to identify,” he said. “They’re the people who are shouting the loudest to increase immigration rates. This is, undoubtedly, organizations like the Century Initiative that is backed by corporate money. Businesses are clearly better off if there are long lines of workers outside their doors competing with each other to get those scarce jobs. Immigration lawyers is another sector of the economy that benefits. Immigrant settlement service providers that teach immigrants new language skills.”
Skuterud points out that those most likely to be adversely affected by high immigration levels are recent immigrants competing for jobs in the same labour market. There was “a very little gap” in earnings between immigrants who arrived in the late ’60 and early ’70s and the native-born, whereas in “the late ’70s and in the ’80s and into the ’90s, it was like this massive deterioration in the relative earnings of immigrants,” he said.
In a Globe and Mail opinion piece in February 2023, journalist Tony Keller cites Stéfane Marion, chief economist with the National Bank of Canada, as saying:
“Canada’s record housing supply imbalance, caused by an unprecedented increase in the working-age population (874,000 people over the past twelve months), means that there is currently only one housing start for every 4.2 people entering the working-age population. … Under these circumstances, people have no choice but to bid up the price of a dwindling inventory of rental units. The current divergence between rental inflation (8.2 per cent) and CPI [consumer price index] inflation (3.1 percent) is the highest in over 60 years. … There is no precedent for the peak in rental inflation to exceed the peak in headline inflation…”
In a lengthy article published on October 28, 2023, also in the Globe and Mail, Konrad Yakabuski takes a deep dive into the economic catastrophe that the Liberal government is imposing on Canadians. The government’s madcap plan, An Immigration Plan to Grow the Economy, involves an annual intake of 500,000 permanent residents by 2025, over twice the number before Justin Trudeau took power in 2015. Aligning with Skuterud, Yakabuski points out that while Canada’s overall GDP has grown, per capita GDP (or per capita income), a far more meaningful indicator of standard of living, has not kept pace and has even declined in recent quarters.
Yakabuski notes that while the federal government seems to have taken as an article of faith the Century Initiative’s assertion that “A larger population is key for the economic prosperity that makes possible what we value, from high-quality healthcare and education to income security programs, cultural vibrancy and a healthy environment,” this is not exactly how things are working out.
“Without a major course correction,” Yakabuski writes, “Canada faces a grim future of unaffordable housing, substandard health care, dilapidated infrastructure and a shrinking tax base as, year by year, its inhabitants grow relatively poorer.”
Yakabuski also observes that labour productivity, or output per worker, has slumped since Trudeau began ramping up immigration levels. More immigration has not led businesses to become more productive.
In September 2023, the Canada Mortgage and Housing Corporation projected that 3.5 million additional housing units, beyond those expected on a business-as-usual scenario, are needed in Canada by 2030 to return housing affordability to 2004 levels. This projection is based on a drop in the rate of population growth after 2025. If current immigration trends continue until 2030, CMHC predicts the housing shortfall would rise to four million by the end of the decade.
Referencing a tweet by Ontario Premier Doug Ford promising to build 1.5 million homes, Randall Denley points out in a July 2023 Ottawa Citizen article that this would happen over ten years, and that 100,000 homes are the most that have ever been built in the province in one year. But in just the previous 12 months, the province had grown by 500,000, the number equal to Canada’s new immigration target. Denley cites a Scotiabank report from the previous year that estimated that Ontario needs 650,000 additional dwelling units just to meet the national average and an Ontario Chamber of Commerce report that says that housing costs are sucking money out of other parts of the economy.
Tristan Hopper reports in October 2023 that “Canada’s birth rate has dropped off a cliff” and that its already low fertility rate had dropped to 1.33 children per woman. A Statistics Canada survey published the previous month, Hopper says, found that over one-third of young Canadians were setting aside plans for a family purely for financial reasons. Of Canadians in their twenties, StatsCan found that 38% did not believe they could afford to have a child in the next three years, with about 32% saying they doubted they’d be able to find “suitable housing” in which to care for a baby. The StatsCan survey found that children were increasingly becoming a marker of wealth. Ironically, the government gives Canada’s low fertility rate as a reason for very high immigration. |
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