Economists have discovered new facts about immigration to Canada. This kind of immigration does not work out in terms of increasing the per capita GDP of the country. Although in a poll done by IPSOS there have been different opinions of the Canadians of the impact of immigration on the economy. In this poll, 45% of Canadians had the opinion that immigrants improve the economy, 22% don’t feel that immigrants don’t contribute to the economy and 33% are not indecisive. Following are the 6 facts discovered by the economists regarding the effect of immigration on the economic output:
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Language skills of the immigrant
According to the economist, only those immigrants are successful in Canada those who know French or English well. There is a high relation between the earnings of a candidate and what are his language skills.
Country from where an immigrant comes from
Immigrants, who belong to those countries where the main language is neither English nor French, are not so successful in the economy of Canada in comparison to those immigrants who hail from English speaking countries. Such English speaking countries are the US or those in Northern Europe.
Foreign degrees don’t have value as much as a Canadian degree
Immigrants who have a degree from countries other than Canada don’t get much leverage in Canada. It is important to have good communication skills in either English or French. The education skills of foreign candidates are not that useful in the Canadian economy.
Work experience of a foreign country in Canada proves to be useless
Many immigrants who have experience from abroad are not very helpful in the labor market of Canada. Sometimes the experience gained in a foreign country can’t be used easily in Canada.
Negative effect on salaries of low skilled workers
Immigration has negative effects on Canada when the new immigrants are affected by immigrants reaching the country after them. There can be an adverse effect on the salaries of low skilled workers when immigrants arrive. Ever since immigration expanded under the rule of Justin Trudeau since 2015, the temporary workers have increased in Canada. This has led to the salaries of the low skilled workers declining.
Low taxes paid by immigrants
who come to Canada don’t generally start through high paying jobs although their salaries might increase later. So, initially, immigrants don’t pay much in the form of taxes to the Canadian government due to low wages. These immigrants start businesses, but they are really small firms so they also don’t provide much employment also.
Long term advantages of immigration
Immigrants also have an enormous advantage when they move to a different country. They have better incomes than in their home country. It was discovered in the United Nations happiness Report which was also written by the famous economist David Helliwell, immigrants who move o happy countries become happy too. Also, there are long term advantages of changing your homeland in terms of better, cheaper and well-recognized education for children who grow in well established and crime-free societies.