CIBC CEO worries about the realities of living in Canada that new immigrants will face
Victor Dodig, CEO of Canadian Imperial Bank of Commerce, warns that Ottawa’s decision to increase immigration levels without first addressing the housing supply could lead to a "social crisis" over the next decade unless something is done soon.
Dodig argues that the objective of adding to the labor pool by increasing immigration must consider the conditions awaiting new Canadians on the ground, including the cost of housing, availability of basic social services, and the ability of non-Canadian professionals to get credentials to work in their fields.
Immigration accounts for 84% of the growth in Canada's total labor force in the 2010s, according to Statistics Canada.
The Canadian government plans to bring in 465,000 permanent residents in 2023; 485,000 in 2024; and 500,000 in 2025 to tackle labor shortages. These numbers are higher than the previous year's targets.
The federal government is expected to introduce new tools this year to help the immigration system target sectors that have the highest labor needs, such as healthcare and construction.
Data from Statistics Canada show that the skills of newcomers are regularly underutilized, and the number of university-educated immigrants working in jobs requiring a university degree has fallen to 38% in 2016 from 46% in 2001, compared to 60% for Canadian-born workers.
Dodig emphasizes the struggles that newcomers face in finding jobs in their fields and highlights the soft trade barriers that hinder their success.
“The whole ecosystem has to work. If they can’t get a house, if they can’t get a doctor, if they are struggling to get a job, that’s not so good.”
See the full story here: https://financialpost.com/news/economy/cibc-dodig-canada-risks-social-crisis-housing-immigration
