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Prashant
Ajmera & Associates |
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Canada will face record shortage of workers in the next 10 year The 9/11 tragedy is blamed by most
foreign applicants applying for a visa to Canada or USA for the
rejection of their application. This is certainly not true. On the contrary,
the Canadian government and governments of many other industrialized
nations have recently introduced new immigration regulations and
programs that encourage the influx of new immigrants into their
countries. These developments are the result of several surveys
conducted in these countries that reflect severe shortage of workers and
immigrants in the future due the aging baby boomer population and strict
immigration laws in past. If these countries do not welcome immigrants,
they are likely to face serious economical problems. In general, the main reasons for
labor shortage in countries like Canada are aging population, retiring
baby boomers, low birth rate and high standard of living. All these
factors are responsible for very small number of population being
attracted to labor work and skilled trade. According to Statistics Canada’s
Census Analysis series, “The changing profile of Canada’s labor
force” published on 11th February 2003, between 1991 and
2001, the number of people in the labor force increased by 1.3 million.
Almost half of this growth occurred in highly skilled occupations that
normally require a university qualification, while low skilled
occupations requiring high school education or less accounted for only a
quarter of the increase. The survey assessed that the average age of the
labor force rose from 37.1 years in 1991 to 39.0 years in 2001. This
Census data also shows that immigrants who landed in Canada during the
1990s and who joined the labor force in 2001 represented almost 70% of
the total growth of the labor force over the decade. If the current
immigration rates continue, it is possible that immigration could
account for virtually the entire labor force growth by 2011. The Organization for Economic Co-operation and Development
(OECD) stated in their report dated 17th September 2003 that,
unless action is taken to encourage more people into employment and
remove the existing barriers to job creation, the annual growth of the
workforce in its 30 member countries will slow from an average 1.3% over
the past 30 years to 0.3% over the next 30. In some countries such as
Italy and Japan, the labor force will gradually decline. Similarly, based on current trends, the ratio of over
65-year-olds to the total workforce will rise from 27% in 2000 to 47% in
2030, straining the current pension schemes and threatening living
standards. The problem is clear - with
populations in rich industrial countries like Canada growing more slowly
than in the past, the influx of workers that used to keep the work force
growing and youthful has slowed to a trickle. In countries such as
Canada, the ratio of those over 65 to the total workforce will rise from
just over one quarter of the workforce in 2000 to nearly half in 2030,
says OECD. This is main worry of all western
countries. How will a static population of younger workers pay for
medical services needed by a growing population of the elderly? In other
words, baby boomers are retiring and who will pay for their retirement? Lets look at another report by William B. P. Robson of
the C. D. Howe Institute, a leading think-tank organization in Canada,
namely, “Aging population and the workforce”. As per this report,
Canada’s working–age population is now growing only half as much as
it did up to 1990 and the trend continues. By 2010, this growth will
virtually halt. If the labor shortage becomes acute, Canada’s renewed
success over the past few years in raising its long stagnant standard of
living could be at risk. There are various options and suggestions being
offered to overcome this problem - increasing the retirement age,
assisting the physically challenged and women to enter the labor market,
etc. However, the most important recommendation is looking for talent
outside the country. The report also says that western countries will
have to compete with each other in order to attract new immigrants. "Immigration is
the New Year's wish for growing Canada's labor force," the
think-tank says in the analysis. As per the report published by the
Conference Board of Canada, Canada’s industrial competitiveness and
ability to generate wealth depends heavily on Canada’s human capital.
However, structural trends are now apparent that will affect Canada’s
labor force dramatically by 2010. The report further states that by
2010, the skill gap in Canada will worsen. Canada’s net labor force
growth will come primarily from immigration. Canada needs to evaluate
and recognize every immigrant’s international credentials in a timely
manner. The shortage of skilled trade needs special attention –
attitudes and the system need to change. Another report published in December 2003
by the Canadian Labor and Business Center states that three provinces
and two major cities in Canada are dependent on immigrants to keep their
workforces from shrinking and other jurisdictions will soon find
themselves in the same boat. The report pinpoints that were it not for
immigration, Nova Scotia, and to a lesser extent, Saskatchewan and
Manitoba plus the country's two most populous cities -Toronto and
Montreal, would actually have suffered a drop in their workforce
population. During my recent research I found a
number of similar surveys being conducted in all major western countries that are facing a labor
shortage. In view of the same, the announcement made by President Bush
on 7th January 2004 to regularize professionals who are in
USA without status and whose skills are in demand in the US is not
surprising. However, on the other hand,
security is another important issue for each of these countries. The
Canadian government is trying to maintain a balance between the two -
Canada’s national security and bringing new work force into Canada
from other countries. In order to address the issue of
present and future labor shortage, the Canadian government has
introduced number of new programs (work permit programs) that will
facilitate the entry of foreign workers into the country. There is also
a fundamental change in government policies that make it easier for
Canadian companies to recruit foreign workers. In coming months I will be
explaining each new program introduced by the Canadian government in
detail.
For More
Information about Canada immigration Please Contact : |
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