Immigration In Canada Essay

What impact does immigration have on the economy of Canada? This research points out possible effects on the employment and wages of domestic workers, Canada’s trade with other countries, the size and growth rate of the economy and the prices that Canadians pay for goods and services. Immigration has directly affected the through the addition of workers to the labor force. At the most basic level, immigration increases the supply of labor in the economy. More labor means more goods and services being produced, so that national output (GDP) rises. Immigration also affects the prices of the inputs that are used to produce these goods and services. Those inputs for which immigrant labor substitutes will suffer as the prices of their

Therefore, an increase in the number of immigrants will generally decrease the wages of domestic unskilled workers. Immigrants are not substitutes for all domestic workers. A disproportionate number of immigrants are low-skilled relative to native workers, and so tend to be poor substitutes for workers other than the low-skilled—that is, they do not do the same things at all. In the jargon of economics, two factors that are not substitutes are called "complements." Immigration of workers and Unemployment in Canada has taken center stage of both public and political debates in recent years. This paper seeks to analyze that simultaneous effect of immigration and unemployment on wage growth rate in Canada. It is of great necessity to survey the impact of these two variables in detail given their perceived relative importance in the determination of wage growth rate in Canada. Immigration to Canada refers to the process by which citizens of other nations move and come to live in

Currently, the immigration and refugee protection act of 2002 is the one that guides immigration in Canada. According to the act, immigration to Canada has three primary objectives which are to unite families, for economic growth and development and to protect refugees. According to Citizenship and Immigration Canada, The number of people moving into Canada has averaged at 257,957 every year since 2006 (CIC, 2015, p. 3). The information represents 0.7% of the population. In other words, every year the 0.7% of the population growth in Canada comes from Immigrants. The implication here is that this is a significantly high number of people, and it has resulted in concerns among the Canadian-born Citizens of Canada. One primary concern is that these immigrants lead to displacements of natives in the labor market and that such a heavy flow people into Canada create an excess supply of labor which translates to reduced growth of wages and increased unemployment. According to (IWC, 2016), immigration to Canada has led to unlimited supply of labor in the markets but on the other, suppressed wages in the country. There are also Several Studies which show a negative relationship between immigration and wages. Some of these studies include (McNichol & Health and Welfare Canada, 1991) and (Elrick & Lightman, 2014). However other studies like (Jiong, 2008) found a positive relationship between wages and