COVID-19 anticipated to reduce Canada immigration inflow by half

 

The worldwide epidemic is projected to reduce Canada immigration yearly intake by half in 2020, prompting worries about the effect on the country's newcomer-driven economy.

According to an RBC study published Friday, Canada received 341,000 permanent residents in 2019. It was on track to welcome another 370,000 this year, but that figure is expected to drop by as many as 170,000.

Permanent Residents:

The number of permanent residents, migrant laborers, and foreign students decreased dramatically in the first quarter of immigration statistics on arrivals.

According to RBC senior economist research, "the disruption will ripple throughout the economy, given our dependence on immigration for labor-force expansion and balance Canada's aging population."

Workforce shortages, rental and housing markets in cities, and university finances are all potential victims. Canada will need a younger and growing population to maintain prosperity and finance the unprecedented rise in the budget deficit caused by the crisis.

Although these health and safety precautions were first implemented in Canada in mid-March, the pandemic's effects on immigration had already been seen in other areas of the globe, causing visa delays and travel disruptions.

Important figures:

The worldwide epidemic is anticipated to continue at least until this autumn, if not longer. Thus, these early Canada immigration figures may be an indicator of what's to come:

In March, permanent residence applications were 30% lower than a year before.

The number of temporary foreign workers admitted to the agriculture industry dropped by 45 percent in March compared to last year's same month.

In March, the number of students arriving on study visas dropped by 45 percent compared to the previous year.

If these limitations continue throughout the summer, we anticipate 170,000 fewer permanent residents to join the nation in 2020 than expected – this in a year when Canadian immigration was meant to receive a record number of immigrants people.

Temporary Foreign Workers:

Even though temporary foreign employees are not subject to entrance restrictions, fewer are arriving. In March, the total number of TFWs entering Canada immigration was down 35% from the previous year's same month. The decrease was more pronounced in the agricultural sector, where they are a major source of labor.

Canada’s Education:

Agopsowicz warned that Canada's foreign education industry is also suffering, with autumn enrolments likely to drop due to travel restrictions and a widespread, potentially permanent shift to online learning.

International students alone contributed $21.6 billion to the Canadian economy in 2018.

International enrollment at the University of Toronto has tripled since 2010, accounting for 25% of the student population. According to the research, if only one-fifth of its international students decide not to study in Canada this year, the government would face a $200 million deficit on a $3 billion budget.

This reduction may harm small businesses and landlords that depend on these students for revenue. A decrease in international students may affect a significant source of new permanent residents in the past.

With their Canadian academic qualifications and job experience, international students have increasingly benefited from the selection procedure of Canadian immigration. Approximately 11,000 new permanent residents studied in Canada in 2019.

Even before the epidemic, Canada depended on immigration to help it cope with the financial consequences of an aging population. With the cost of fighting COVID-19 approaching $160 billion, Canada now needs a rising labor force more than ever.