Immigrants More Affected By Recession

Canada, like most other countries, is going through a recession. And as jobs are being cut across the board, among those first to be affected are those with immigrant background, particularly those who are considered ‘new immigrants’.

Recent studies have given proof to this. A report that appeared in the Globe and Mail newspaper says that in general, immigrants tend to lose jobs more easily than Canadian-born workers. And within the immigrants group, those who came to Canada recently can lose jobs faster than those who are more established.

The newspaper and Statistics Canada analysed unemployed data during two, three-month periods – ending June 2008 and June 2009. They found out that while unemployment among Canadian-born workers rose by 1.6 percent, it rose by three percent for established immigrants and 5.7 percent for recent immigrants.

And worse still, studies have found that even when the recession is over and the economy is bouncing back, immigrants find it difficult to find jobs that fit their experiences and qualifications.

Jobless Numbers Go Up

The numbers keep rising. This is the fact when it comes to unemployment in Canada.

Statistics Canada says that in May of this year, 778,700 people were receiving employment insurance – or EI which is actually unemployment insurance. Compared to the previous month, this was a 9.2 percent increase.
This is a severe increase, compared to the increase of just under three percent that April witnessed, as compared to March, 2009.
The worst hit provinces were the oil-rich Alberta, where the low oil prices have caused a severe setback to the economy and Ontario, which has been hit by the crisis in the auto industry and lower demand abroad for manufactured goods.
The latest data comes just days after Bank of Canada, the country’s central bank, said the recession was over.
The bank says Canada’s economy will grow by a modest 1.3 percent during the current quarter ending September and then by three percent during the final quarter of this year.
However, officials say the labour market will be slow to pick up.

Canada to Reduce Immigration Intake?

Canada might consider reducing the number of immigrants it will allow if the current economic downturn continues. That the numbers will go down is not confirmed, but the federal immigration minister, Jason Kenney, recently expressed his worry about bringing in newcomers to face a country in economic turmoil.

At present Canada’s unemployment rate stands at 7.2 percent and the trend is disturbing. In January, 2009, alone it jumped by more than half a percent, or by 129,000 in absolute numbers. The worst hit has been Ontario, where most of the immigrants prefer to go to.

Unemployment Forecast

Some analysts say, another 200,000 or even double that amount might lose their jobs during the course of this year.  The government predicts that it will take at least four more years for Canada to reach the employment level of last year.

Immigration Target

It is in this background that Canada’s immigration politics should be seen. Last year, the country allowed just under 250,000 new immigrants, most of them under the Economic Class. As well, Canada also allowed about 140,000 temporary workers and close to 80,000 foreign students last year.

For this year, Kenney says the target is between 240,000 to 265,000.

With the economy in a steep decline and job losses mounting, Canadian policy makers would be concerned about frictions that could arise if there are more newcomers while locals struggle to find jobs. Besides, settlement agencies have also expressed concern about the fact that immigrants tend to suffer more from unemployment than their Canadian-born counterparts, even if they have equal or better qualifications.

But for now, Kenney says, he will stick to his target for this year. But some analysts predict the number of temporary workers, mostly farm workers, might drop this year.