Mint explainer: why Canada is welcoming more immigrants than ever

Canada has historically been open to immigrants, and has now opened its doors wider, as the aging nation tries to address labor shortages and keep its economic engine running. Indians have been the largest expatriate group in Canada in recent years, outpacing the Chinese, and this number will only increase. The country has seen an increasing demand for skilled professionals and a declining demand for less skilled labour. Meanwhile, Australia and Germany are also welcoming immigrants, and some experts have called for changing US immigration policies to attract talent.

What does Canada’s new immigration policy reveal?

Canada announced a new immigration policy on 1 November. Like most of the developed world, its population is graying out, but unlike many others, Canada believes that encouraging immigration is the best way to keep its economy on track. It helps address the labor shortage and skill deficit for businesses. The government says the new policy is aimed at managing the social and economic challenges in the coming decades. In 2021, Canada recruited more than 405,000 freshmen, the most in a single year. The new policy aims to increase this number to 465,000, 485,000 and 500,000 residents in 2023, 2024 and 2025 respectively. According to the government, immigration now accounts for almost 100% of Canada’s labor force growth. By 2032, almost all of Canada’s population growth will be due to immigration.

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Opportunities for Indian expatriates in Canada

Restrictive immigration policies in the US have prompted many Indians to consider opportunities in Canada. Indians have become the largest immigrant group in Canada, overtaking the Chinese. The number of Indians seeking permanent residency (PR) in Canada has nearly tripled in recent years, from about 30,000 or less every year a decade ago to nearly three-fold now. In fact, about 20% of the permanent residency offered by Canada now goes to Indians, most of whom are economic migrants. Whereas previously, there were abundant low- and medium-skilled jobs for migrants, Canada is now more open to highly skilled immigrants in healthcare, manufacturing, and STEM (science, technology, engineering and math).

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Other developed countries are also paying attention

In September, Australia said it would increase its permanent immigration intake from 35,000 to 195,000 in the current fiscal year. Home Affairs Minister Claire O’Neill said: “The impact of Covid has been so severe … (that would be Australia) thousands of workers down, at least in the short term.” She also acknowledged that the “best and brightest minds” had opted to immigrate to Canada, Germany and the UK, and vowed to rebuild Australia’s immigration program in the national interest. An aging Germany has also encouraged skilled-worker migration from India over the past decade, particularly in STEM. Between 2010 and 2020, the number of people of Indian origin settled in Germany tripled from 48,000 to 151,000.

Skilled workers moving to Canada and other destinations have raised some concern in the US as well. In July 2021, a US Congressional Subcommittee on Immigration and Citizenship declared “Oh Canada! How old US immigration policies push top talent to other countries”.

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