Economic impact of immigration to Canada

The economic impact of immigration is an important topic in Canada. Throughout its history Canada has depended on a large stream of immigrants for its economic success. While the immigration rate has declined sharply from its peak early in the 20th century, Canada still accepts more immigrants per capita than any other major country.

The per capita immigration rate to Canada has been relatively constant since the 1950s, and recent years have seen a steady increase in the education and skill level of immigrants to Canada. However, over the last 25 years the economic position of newcomers to Canada relative to the native population has steadily declined. A 2007 Statistics Canada study shows that the income profile of recent immigrants deteriorated by a significant amount from 2000 to 2004. [http://www.statcan.ca/english/research/11F0019MIE/11F0019MIE2007294.pdf Chronic Low Income and Low-income Dynamics Among Recent Immigrants] , Statistics Canada, January 2007, URL accessed 30 January 2007] Recent immigrants themselves are far more likely than native born Canadians to have low incomes, with income and employment rates increasing towards the national average with more time spent in Canada.

Overview

Immigration to Canada

:"Main Immigration to Canada"According to "Canada's Immigration Program" (October 2004), Canada has the highest per capita immigration rate in the world, [http://www.parl.gc.ca/information/library/PRBpubs/bp190-e.htm Canada's Immigration Program (October 2004)] , Library of Parliament, URL accessed 13 July 2006] although statistics in the CIA World Factbook shows that a number of city states and small island nations, as well as some larger countries in regions with refugee movements, have higher per capita rates. [http://www.photius.com/rankings/population/net_migration_rate_2007_0.html Field Listing - Net Migration Rate] Central Intelligence Agency, The World Factbook 2007] In 2004, Canada received 235,824 immigrants. [ [http://www.migrationinformation.org/datahub/countrydata/country.cfm Inflow of foreign-born population by country of birth, by year] ] Canada is also unusual among western nations in the widespread popular support for high rates of immigration, and in recent years support for immigration has increased in Canada. ["Canadians support diversity and immigrants;" Michael Adams. The Windsor Star. Windsor, Ont.: Nov 28, 2007. pg. A.8.] All of Canada's major political parties support either sustaining or increasing the current level of immigration. While its predecessor the Reform Party expressed concern about immigration [Hunter, Justine. "Restrict immigration, Reform party chief urges; Stricter immigration regulations advocated by Reform party chief." "The Vancouver Sun." Vancouver, B.C.: Sep 30, 1988. pg. A.15] the current Conservative government has no plans to reduce immigrations levels. Prime Minister Stephen Harper, on announcing changes to the immigration act assured Canadians that "on immigration generally I want to be clear that this government favours an aggressive immigration policy. We are bringing in more immigrants than any previous government." [MacCharles, Tonda. "PM defends immigration changes; Harper says he is ready to go to polls on issue." Toronto Star. Toronto, Ont.: Apr 19, 2008. pg. A.1] The previous Liberal government was even more strongly in favour of a high immigration rate, proposing increasing immigration by some 20,000 people per year. [Dawson, Anne. "Feds set to boost immigration by 100,000 over five years." "The Gazette." Montreal, Que.: Oct 27, 2005. pg. A.12] The high immigration policy is most often justified through economic arguments. Former Prime Minister Paul Martin, for instance, argued that immigration rates should be increased to make up for the shortage of skilled workers and to compensate for and ageing population. [Weeks, Carly. "Canada to land 10,000 more immigrants next year." "The Gazette. Montreal," Que.: Nov 1, 2005. pg. A.11]

Economic rationale for immigration

Canada's unusually high immigration rates, and the equally unusual general popular support for a high rate of immigration, can be traced to the nation's unique economy. One factor is that Canada has one of the world's largest supplies of natural resources such as oil, metals, and lumber. It also has a sparse population spread over a vast landscape. Throughout its history Canada has thus faced acute labour shortages and has responded by actively recruiting immigrants. [Wallace, Iain, "A Geography of the Canadian Economy." Don Mills: Oxford University Press, 2002.] In the late 19th century this included bringing Chinese migrants to build the Canadian Pacific Railway and actively advertising in Europe to find farmers with the Last Best West campaign. Today similar recruitment efforts are needed to staff the oil sands projects in Alberta. [Scotton, Geoffrey. "Alberta worker shortfall could hit 350,000 by 2025." "Calgary Herald." Calgary, Alta.: Apr 11, 2006. pg. D.3]

Another factor that may lead Canadians to support high immigration levels is Canada's low birth rate (see List of countries by birth rate). The theory is that new residents can assist in meeting future government obligations relating to pay-as-you-go liabilities. The economic dangers of population decline are not universally accepted. Organizations like the Fraser Institute, a conservative think tank, question whether a declining population would reduce or increase per capita income, noting that in the short term, with a stable economy, fewer people would increase the per capita income simply because you divide the income among fewer people. They conducted a study that claims that the tax revenue received from immigrants does not exceed the government expenses relating to them. [http://www.fraserinstitute.org/COMMERCE.WEB/product_files/Immigration.pdf Immigration and the Welfare State in Canada: Growing Conflicts, Constructive Solutions] , Public Policy Source, Fraser Institute, Number 84, September 2005, URL accessed 22 August 2006] A study by the C. D. Howe Institute, another conservative think tank, suggests that immigration cannot keep Canada's population young and could possibly contribute to population ageing in the near term. [http://www.cdhowe.org/pdf/backgrounder_96.pdf No Elixir of Youth: Immigration Cannot Keep Canada Young] , Backgrounder, C. D. Howe Institute, Number 96, September 2006, URL accessed 29 November 2006] Employment statistics also bring into question whether skilled worker immigrants, with a 34% unemployment rate, [http://www.statcan.ca/english/freepub/89-614-XIE/2005001/tables/table8.5.htm Immigrants' labour force rates, by immigration category, 2001] , Statistics Canada, URL accessed 2 July 2006] are successfully meeting existing labour market needs in Canada. Many developed nations have much lower fertility rates than Canada but have not embraced immigration. A wide array of scholars and organizations have supported Canada's immigration policy. In 1995 economic research firm DRI-McGraw Hill Inc. react with alarm to proposed reductions in immigration levels. They acknowledged that immigration comes with short term costs, but argued that in the long run immigration boosts employment and economic output. [Beauchesne, Eric. "High cost for low immigration: That's the warning from an economic research firm;" Kingston Whig - Standard. Kingston, Ont.: Jan 3, 1995. pg. 4] One of the most ringing endorsements of a high immigration rate came from the 1991 report by the Economic Council of Canada, the first detailed analysis of Canadian policy. It called for immigration to be increased to eventually bring Canada's population to 100 million. While it found that the economic benefits to Canada of immigration were fairly small, the benefits to the newcomers themselves were extremely large. The report concluded that "it would be hard not to recommend an increase when immigrants can gain so much and Canadians not only do not lose but actually make slight economic gains." [Economic Council of Canada (1991), Economic and Social Impacts of Immigration (Ottawa: Supply and Services Canada)] [Hogben, David. "Wanted: 100 million people to make Canada efficient." "The Vancouver Sun." Vancouver, B.C.: Feb 21, 1991. pg. E.1] In 2005 a report by the Royal Bank of Canada called for boosting Canada's immigration rate by 30% to 400,000 per year to ensure continued economic growth. [Keung, Nicholas. "Boost immigration, bank's report says; Calls for 400,000 people a year to maintain growth Critics warn more resources needed to handle numbers." "Toronto Star." Toronto, Ont.: Oct 20, 2005. pg. A.23]

Immigrant well being

Education levels

Immigrants to Canada tend to be highly educated, and the Canadian system puts great emphasis on finding skilled migrants. Newcomers to Canada are more likely to hold an advanced degrees and are better educated than native Canadians [George, Usha. "Immigration and Refugee Policy in Canada." "Canadian Social Policy: Issues and Perspectives." ed. Anne Westhues.] Immigrants to Canada are also much more likely to be skilled than immigrants to the United States. George J. Borjas compared immigrants to Canada and the United States finding those to Canada being better educated and receiving higher wages once settled. He accredits this Canada's points based immigration system, and argues for the United States to more closely emulate the Canadian method. [Brojas, George J. "Heaven's Door: Immigration Policy and the American Economy."]

Within the Canadian economy, immigrants are most found at the highest education levels. In Canada, 38% of male workers with a post-graduate degree are immigrants to the country. [Bryan, Jay. "Newcomers improve pay equality in Canada;" "The Gazette." Montreal, Que.: May 26, 2007. pg. C.1.BRE] 23% of Canadians are foreign born, but 49% of doctorate holders and 40% of those with a masters degree were born outside Canada. [Fitzpatrick, Meagan. "Majority of recent immigrants to Canada have degree." "Nationa Post." Tuesday, March 04, 2008] A persistent problem for skilled immigrants is the recognition of foreign credentials. While Canada recruits people to come based on their degrees, many newcomers arrive to find employers and professional organizations not recognizing their foreign education. [http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20070218/layton_credentials_070218/20070218?hub=CTVNewsAt11 NDP calls for recognition of foreign credentials] , CTV News, URL accessed 23 February 2007] As the percentage of skilled newcomers as a share of total migrants has increased, so has this problem. From 2001 to 2006 56% of immigrants who arrived in Canada held a university degree, a sharp increase over the 28% who arrived prior to 2001. [Rynor, Becky. "Canadians are better educated than ever, Statistics Canada says" "National Post." Tuesday, March 04, 2008] In other nations immigrants also find difficulties getting their credentials recognized. An international study by the Migrant Integration Policy Index, sponsored by the research division of the British Council and 100 other signatories, assigned its highest score (3 out of 3) to Canada for the "State facilitation of recognition of skills and qualifications" indicator in their 2006 study of 27 European countries and Canada. [http://www.integrationindex.eu Migrant Integration Policy Index] , British Council, 15 October 2007, URL accessed 15 October 2007] The sheer number of skilled migrants to Canada does make the problem a more significant one in that country and politicians of all parties have called for change in this area. [http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20070218/layton_credentials_070218/20070218?hub=CTVNewsAt11 NDP calls for recognition of foreign credentials] , CTV News, URL accessed 23 February 2007] [http://www.canada.com/nationalpost/news/archives/story.html?id=b60babbd-6879-403c-a9d5-038a1d37c919 Liberals playing Immigration Card] , National Post, 23 February 2007, URL accessed 23 February 2007] [http://winnipegsun.com/News/Canada/2007/02/20/3647264-sun.html Immigrants' creds not up to feds:PM] , Winnipeg Sun, 20 February 2007, URL accessed 24 February 2007]

The setting of standards for, or recognition of, almost all professional credentials does not fall within the federal government's control and are therefore not determined by either federal laws or Citizenship and Immigration Canada policies, [http://winnipegsun.com/News/Canada/2007/02/20/3647264-sun.html Immigrants' creds not up to feds:PM] , Winnipeg Sun, 20 February 2007, URL accessed 24 February 2007] but Citizenship and Immigration Canada established the Foreign Credentials Referral Office to provide something like a directory assistance service for immigrants. [http://www.credentials.gc.ca/ Foreign Credentials Referral Office] , Part of Citizenship and Immigration Canada] The Government of Ontario enacted the "Fair Access to Regulated Professions Act, 2006" to help immigrants qualify for 34 provincially regulated professions. [http://www.citizenship.gov.on.ca/english/working/farpa/ Fair Access to Regulated Professions Act, 2006] , Ministry of Citizenship and Immigration (Ontario), URL accessed 23 January 2007] The Act also established the position of Fairness Commissioner (Ontario). In 2007, the Government of Alberta signed an agreement with federal government that will accelerate the process of foreign credential recognition for new immigrants by licensing bodies in that province. [http://www.cbc.ca/canada/calgary/story/2007/05/11/immigration-alberta.html Alberta signs immigration deal with Ottawa] , CBC News, URL accessed 11 May 2007] Other provinces have made similar commitments.

Wages

One important effect of this steady influx of highly skilled immigrants is the reduction of income inequality in Canada. A steady stream of doctors and engineers into the economy reduces wages for these professions. Since immigrants play a smaller role in unskilled fields, these wages are relatively higher in comparison. In the United States immigration patterns are reversed, and income inequality is much higher as a partial result. [Bryan, Jay. "Newcomers improve pay equality in Canada;" "The Gazette." Montreal, Que.: May 26, 2007. pg. C.1.BRE] In terms of the impact of immigration to economy-wide wage levels, Statistics Canada estimates that for every 10% increase in the population from immigration, wages in Canada are now reduced by 4% on average (with the greatest impact to more skilled workers, such as workers with post-graduate degrees whose wages are reduced by 7%). [http://www.statcan.ca/english/freepub/89-001-XIE/89-001-XIE2007001.pdf The Impact of Immigration on Labour Markets in Canada, Mexico, and the United States] , Statistics Canada, Update on Family and Labour Studies, May 2007, URL Accessed 26 May 2007]

In part because of the credential issue, many immigrants are forced to find work below their education level and at lower wages. However, even for doing work of the same skill level immigrants are much less well compensate than their native born counterparts. Immigration scholar Jeffrey Reitz calculated that in 2001 native Canadians were benefiting from, and immigrants were losing out on, $55 billion per year due to this imbalance. [Siddiqui, Haroon. "Immigrants subsidize us by $55 billion per year." "Toronto Star." Toronto, Ont.: Jan 14, 2001. pg. A.13]

There are a number of possible explanations for why newcomers earn less than native Canadians in the same jobs with the same skills. Lower hourly wages might be an indication that the labour productivity of immigrants is lower, and employers thus have reason to pay them less. Racism is also a possibility. The wage imbalance is especially true for visible minorities, indicating that racism plays a role. [Siddiqui, Haroon. "Immigrants subsidize us by $55 billion per year." "Toronto Star." Toronto, Ont.: Jan 14, 2001. pg. A.13] New workers are also less familiar with the Canadian labour market and will thus not be able to maximize their salaries. Employers will also be less familiar with an immigrants background and thus less willing to offer the same salary as to a native. [Nakamur, Alice. "The Potential Impacts of Immigration on Productivity in Canada" "Canada's Immigration Policy for the 21st Century" edited by Charles M. Beach, Alan G. Green and Jeffrey G. Reitz, John Deutsch Institute: McGill-Queen's University Press, 2003.]

Employment

In recent years the unemployment rate for newcomers has also increased. In 1981 those who had just arrived had a high rate of unemployment, but those who had been in the country five years were more likely than average to be employed. By 2001 the transition period had expanded, and now it takes ten years before newcomers reach the same employment rate as those born in Canada. [http://www.clbc.ca/files/Reports/Fitting_In/Transition_Penalty_e-CLBC.pdf The Transition Penalty: Unemployment Among Recent Immigrants to Canada] , CLBC Commentary, Canadian Labour and Business Centre, July 2003, URL Accessed 13 September 2006] In 2006, the unemployment rate of recently arrived immigrants year was 11.5%, considerably above the native Canadian average of 4.9%. For more established immigrants who had been in Canada between 5 and 10 years the rate fell to 7.3% [ [http://www.statcan.ca/Daily/English/070910/d070910a.htm Statistics Canada - Study: Canada's immigrant labour market, URL accessed 21 May 2008] ]

:Data source: [http://www.statcan.ca/english/freepub/71-606-XIE/2008003/tables/table2-en.htm Labour market outcomes of immigrants aged 25 to 54, by sex and period of landing, Canada] :For clarity: Employment Rate = Participation Rate * (1 - Unemployment Rate)

One of the most important studies of the economic impact of immigration to Canada is Morton Beiser's "Strangers at the Gate." This study looked at the arrival of the Vietnamese boat people who began to arrive in Canada in 1979 to much controversy. The total number of refugees was 60,000, the largest single group of refugees to ever arrive in Canada. Besier first studied the boat people upon their arrival, finding that few spoke English or French, that most were farmers with few skills useful in Canada, and that they had arrived with no assets with which to establish themselves. Besier then followed the progress of the boat people to see what effect they would have on Canada. Within ten years of arrival the boat people had an unemployment rate 2.3% lower than the Canadian average. One in five had started a business, 99% had successfully applied to become Canadian citizens, and they were considerably less likely than average to receive some form of social assistance. [Beiser, Martin. "Strangers at the Gate: The "Boat People's" First Ten Years in Canada"Toronto: University of Toronto Press, 1999] [Sarick, Lila. "Vietnam boat people prospering, study finds Public perception of refugees as drain on society is false, researcher says." "The Globe and Mail." Toronto, Ont.: Sep 27, 1994. pg. A.4]

Income

Higher rates of unemployment and lower wages combine to give newcomers less income than the Canadian average. Analysis of census data as of 2000 shows that immigrant incomes were at 80% of the national average after 10 years of residing in Canada. [http://www.cdhowe.org/pdf/backgrounder_81.pdf Immigrants' Declining Earnings:Reasons and Remedies] , C.D. Howe Institute Backgrounder, C.D. Howe Institute, No. 81, April 2004, URL accessed 1 September 2006] In previous decades, immigrant income levels did rise to the national average after 10 years, but in recent years the situation has deteriorated. A 2003 study published by Statistics Canada noted that "in 1980 recent immigrants had low-income rates 1.4 times that of Canadian born, by 2000 they were 2.5 times higher, at 35.8%." [http://dissemination.statcan.ca/english/research/11F0019MIE/11F0019MIE2003198.pdf The rise in low-income rates among immigrants in Canada] , Analytical Studies Branch research paper series, Statistics Canada, June 2003, URL accessed 20 September 2006] The study noted that the deterioration was widespread and affected most types of immigrants. The 2003 study explains that the low-income rate among non-immigrants declined in the 1990s, but this was more than offset by the income profile of new immigrants, resulting in a net rise in Canada's total low-income rate. An updated January 2007 study by Statistics Canada, explains that the deterioration continued into the next decade, with the low-income rate of recent immigrants reaching rates of 3.5 times that of Canadian born in 2002 and 2003, before edging back to 3.2 times in 2004. [http://www.statcan.ca/english/research/11F0019MIE/11F0019MIE2007294.pdf Chronic Low Income and Low-income Dynamics Among Recent Immigrants] , Statistics Canada, January 2007, URL accessed 30 January 2007] The 2007 study explains that this deterioration has occurred even though Canada implemented changes in 1993 to encourage more highly educated immigrants, with 45% of new immigrants having university degrees as of 2004.

In 1991 the Economic Council of Canada found that periods of immigration were not directly linked to periods of high growth. They noted that "a historical perspective gives little or no support to the view that immigration is needed for economic prosperity. In the 19th and early 20th centuries, the fastest growth in per capita real incomes occurred at times when net immigration was nil or negative. Later in the 20th century, the opposite linkage is seen but, clearly, there is no long-term correlation." However, the same report found that a high rate of immigration was good for Canada's future, and recommended expanding immigration rates to bring Canada's population to 100 million.Economic Council of Canada (1991), Economic and Social Impacts of Immigration (Ottawa: Supply and Services Canada)] A University of Montreal study published in 2002 by professor Marc Termote used different methods and studied different countries and concluded that immigration has no statistically significant impact to the per capita income of a country. [http://www.erudit.org/revue/cqd/2002/v31/n1/000423ar.html La mesure de l’impact économique de l’immigration internationale. Problèmes méthodologiques et résultats empiriques] , L’immigration, Volume 31, numéro 1, 2002, Cahiers québécois de démographie, ISSN|0380-1721 (imprimé), ISSN|1705-1495 (numérique), URL accessed 3 August 2006]

Decline in economic well being

Over the last 25 years the economic position of newcomers to Canada relative to the native population has steadily declined. A number of theories have been advanced to explain these issues.
# The selection process is flawed; [http://www.fraserinstitute.org/COMMERCE.WEB/product_files/Immigration.pdf Immigration and the Welfare State in Canada: Growing Conflicts, Constructive Solutions] , Public Policy Source, Fraser Institute, Number 84, September 2005, URL accessed 22 August 2006]
#Government and corporate policies deliberately shift immigrants to secondary sector occupations. These are jobs characterized by high instability, hazardous work environments, and low pay. Inherently those involved in these sectors will have lower wages and more periods of unemployment. In several European countries the immigration system is almost fully designed to try and fill these positions. This is less the case in Canada, but significant recruitment programs for sectors such as agriculture and oil and gas recruit many workers to perilous jobs. [Kazemipur, Abdolmohammed and Shiva S. "Halli Immigrants and 'New Poverty': The Case of Canada." "International Migration Review." 2001]
# Newer immigrants from outside of Europe are victims of racial discrimination. [Siddiqui, Haroon. "Immigrants subsidize us by $55 billion per year." "Toronto Star." Toronto, Ont.: Jan 14, 2001. pg. A.13]
# Canada's social programs create incentives that conflict with the employment objective; [http://www.fraserinstitute.org/COMMERCE.WEB/product_files/Immigration.pdf Immigration and the Welfare State in Canada: Growing Conflicts, Constructive Solutions] , Public Policy Source, Fraser Institute, Number 84, September 2005, URL accessed 22 August 2006] and/or
#Increased job competition among even native-born Canadians has increased the importance of relying on networking to access the "hidden market," putting immigrants at a disadvantage given their lack of deep and broad networks. [http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/1079718045940_75127245 Help Wanted] , CTV News, 19 March 2004, URL accessed 10 July 2007]

A January 2007 study by Statistics Canada analyzed the deterioration in the economic performance of Economic immigrants from several perspectives. [http://www.statcan.ca/english/research/11F0019MIE/11F0019MIE2007294.pdf Chronic Low Income and Low-income Dynamics Among Recent Immigrants] , Statistics Canada, January 2007, URL accessed 30 January 2007] One of the more surprising facts is that Economic immigrants are now more likely to begin their stay in Canada with a "low-income" (less than 50% of the median income) than an immigrant in any of the other immigration classes (see Table 16 in the study). This deterioration occurred during the 1990s and early 2000s despite the percentage of immigrants arriving with degrees in the economic class (including principal applicants, spouses, and dependents) rising from 29% in 1992 to 56% in 2003.

To reduce a backlog of immigration applicants of all classes, and to better target the required skills needed in Canada, the federal government passed a law in 2008 that would favour skilled workers over family class immigrants through a process that would give more discretion to the immigration department. [http://www.theglobeandmail.com/servlet/story/LAC.20080328.IMMIGRATION28/TPStory/National Businesses applaud proposed immigration law] , Globe and Mail, 28 March 2008, URL accessed 29 March 2008]

While the well being of immigrants has declined in recent years, this has not affected second generation immigrants, or those who came to Canada as a child. This group is one of the most successful in Canada, with education and earning levels well above that of their parents and also above the Canadian average. [Boyd, Monica and Elizabeth M. Grieco "Triumphant Transitions: Socioeconomic Achievements of the Second Generation in Canada." "International Migration Review," 1998]

Wider effects

upport

The government has a large department and a number of programs to try to ensure the well being of immigrants to Canada, and ameliorate their economic condition.The Citizenship and Immigration Canada department employs 5,000 staff, [http://web.archive.org/web/20060524110432/http://www.cic.gc.ca/english/department/brochure/service.html About the Department] , Citizenship and Immigration Canada, URL accessed 25 November 2006] which on a per capita basis is 3 times more than the 15,000 U.S. Citizenship and Immigration Services employees. [http://www.uscis.gov/portal/site/uscis/menuitem.eb1d4c2a3e5b9ac89243c6a7543f6d1a/?vgnextoid=2af29c7755cb9010VgnVCM10000045f3d6a1RCRD&vgnextchannel=2af29c7755cb9010VgnVCM10000045f3d6a1RCRD About U.S. Citizenship and Immigration Services] , U.S. Citizenship and Immigration Services website, URL accessed 2 December 2006] Citizenship and Immigration Canada recoups some of its department costs through landing fees. In 2006, the Canadian government reduced the landing fee per immigrant by 50%. [http://www.pm.gc.ca/eng/media.asp?id=1159 Promoting opportunity for new Canadians] , Prime Minister of Canada website, 12 May 2006, URL accessed 25 November 2006]

New immigrants are also entitled to settlement assistance such as free language training under provincial government administered programs usually called Language Instruction for Newcomers to Canada (LINC), for which the federal government budgeted about $350 million to give to the provinces for the fiscal year 2006-2007. [http://www.cic.gc.ca/english/press/06/0620-e.html Canada's New Government Delivers on $307 Million in Settlement Funding] , Citizenship and Immigration Canada, 10 November 2006, URL accessed 25 November 2006] The majority of the $350 million was allocated to Quebec under the Canada-Quebec Accord, at $196 million per year, [http://www.pwgsc.gc.ca/recgen/pdf/v1pa06-e.pdf Public Accounts of Canada, 2006, Volume I] , Summary Reports and Financial Statements, Public Works and Government Services Canada, 19 September 2006, URL accessed 12 March 2007] even though immigration to Quebec represented only 16.5% of all immigration to Canada in 2005. [http://www.cic.gc.ca/english/resources/statistics/facts2006/facts2006_provinces.asp Annual Immigration by Province] , Citizenship and Immigration Canada, URL accessed 2 July 2006] The $350 million is budgeted to increase by an additional $90 million by 2009. [http://www.budget.gc.ca/2007/pdf/bp2007e.pdf The Budget Plan 2007] , Page 219, Department of Finance (Canada), URL accessed 24 March 2007] Provincial governments in Canada have established citizenship and immigration departments, such as the Ministry of Citizenship and Immigration (Ontario).

Support for immigrants was also one of the key issues that formed the basis of the New Deal for Cities between Toronto (and other urban centres), the Province of Ontario, and the Government of Canada, [http://www.canadascities.ca/newdealforcities.htm New Deal for Cities] , "Canada's Cities", URL accessed 12 September 2006] because 43% of new immigrants settle in the Greater Toronto Area resulting in certain challenges for that region. [http://www.thestar.com/Special/Canada2020/article/106702 When immigration goes awry] , Toronto Star, 14 July 2006, URL accessed 5 August 2006] [http://www.theglobeandmail.com/servlet/story/RTGAM.20070730.wuniversities30/BNStory/National/home Will there be space for your child?] , Globe and Mail, 30 July 2007, URL accessed 31 July 2007] A paper published by Statistics Canada noted that "Over the 1990s (1990 to 2000) the city's low-income rate rose 1.9 percentage points. All of this increase was associated with deteriorating outcomes among immigrants, which tended to increase the city's low-income rate by 2.8 percentage points." [http://dissemination.statcan.ca/english/research/11F0019MIE/11F0019MIE2003198.pdf The rise in low-income rates among immigrants in Canada] , Analytical Studies Branch research paper series, Statistics Canada, June 2003, URL accessed 20 September 2006] In other words, the low-income rate among non-immigrants fell, but the income profile of new immigrants resulted in a net widening of the income inequality gap in Toronto during the 1990s.

The needs of immigrants prompted the United Way of Greater Toronto, the largest United Way charity in Canada, to identify immigration services in Toronto as a top priority for their $100 million 2006 campaign to combat poverty and social exclusion. [http://pqasb.pqarchiver.com/thestar/access/1125369681.html?dids=1125369681:1125369681&FMT=ABS&FMTS=ABS:FT&date=Sep+11%2C+2006&author=Leslie+Ferenc&pub=Toronto+Star&edition=&startpage=B.3&desc=Campaign+starts+on+a+high Campaign starts on a high -- Immigrant services again a top priority for United Way] , Toronto Star, 11 September 2006, URL accessed 11 September 2006] In 2006, the "Daily Bread Food Bank" in Toronto reported that over 40% of its clients are foreign-born, and that almost half of that group had been in the country for less than 4 years. [http://www.dailybread.ca/pdf/blueprint.pdf BLUEPRINT to fight hunger] , Daily Bread Food Bank, 2006, URL accessed 5 October 2006] While the less than 4 year group shows far above average need, the over 40% figure is in line with the general population as 44% of Torontonians are foreign-born. [http://news.bbc.co.uk/2/hi/americas/3898795.stm Miami tops 'foreign-born' cities] , BBC News, 15 July 2004, URL accessed 13 October 2006]

Government finances

Immigrants on average contribute more to government revenues than the Canadian average. A 1990 study found that an average immigrant household paid $22,528 in all forms of taxes and on average each household directly consumed $10,558 in government services. By contrast an average native Canadian household paid $20,259 in tax and consumed $10,102 dollars in services. Across the country this means that immigrant households contributed $2.6 billion more than their share to the public purse. [Ather H. Akbari, "The Impact of Immigrants on Canada's Treasury, circa 1990," in Diminishing Returns, ed. Don J. DeVoretz, Policy Study 24 (C. D. Howe Institute, Laurier Institution, 1995)] A 1996 study found that over a lifetime a typical immigrant family will pay some forty thousand dollars more to the treasury than they will consume in services. ["The Political Economy of Canadian Immigration Debate: A Crumbling Consensus?" "RIIM Commentary Series" #96-03, Simon Fraser University. 1996.] Explanations for this include that immigrant households tend to be larger, and have more wage earners, increasing taxes. Newcomers are also less likely to make use of many social services. Immigrants are less likely than native Canadians to receive employment insurance, social assistance, and subsidized housing. [Baker, Michael and Dwayne Benjamin "The Receipt of Transfer Payments by Immigrants to Canada." "The Journal of Human Resources" 1995] Immigrants are also much less likely to become homeless or suffer from mental illness. [Toronto's white underbelly. Kate Hammer. The Globe and Mail. Toronto, Ont.: May 17, 2008. pg. M.4] Recent immigrants are also less likely to make use of subsidized housing than native Canadians of the same income level. In 2004 22.5% of low-income native Canadians lived in subsidized housing, but only 20.4% of low income recent immigrants did so, though this number was considerably higher among more established immigrants. [ [http://www.hrsdc.gc.ca/en/publications_resources/research/categories/inclusion/2007/sp_680_05_07_e/page12.shtml A Study of Poverty and Working Poverty among Recent Immigrants to Canada] ] The conservative, Fraser Institute has also studied this issue claims that the immigrants who arrived between 1990 and 2002 cost governments $18.3 billion per annum (as of 2002) in excess of taxes raised from those immigrants, relating to universal social services (e.g., welfare, medicare, public education). [http://www.fraserinstitute.org/COMMERCE.WEB/product_files/Immigration.pdf Immigration and the Welfare State in Canada: Growing Conflicts, Constructive Solutions] , Public Policy Source, Fraser Institute, Number 84, September 2005, URL accessed 22 August 2006]

International trade

The presence within Canada of people representative of many different cultures and nations has also been an important boost to Canada's international trade. Immigrants will often have, expertise, linguistic skills, personal connections with their country of origin that can help forge international trade ties. Studies have found that Canada does have greater trade relations with those nations that have provided large numbers of immigrants. [Keith Head, John Ries "Immigration and Trade Creation: Econometric Evidence from Canada." The Canadian Journal of Economics Vol. 31, No. 1 (Feb., 1998), pp. 47-6] Canada's economy is heavily centered on international trade with it accounting for 36% of GDP in 2006. [ [http://www.swivel.com/data_sets/spreadsheet/1005259 Share of Trade in GDP source data - Swivel ] ] 86.9% of Canadian exports go to the United States. [ [http://www.cme-mec.ca/national/template_na.asp?p=3 Canadian Manufacturers & Exporters Portal ] ]

ee also

* Immigration to Canada
* Economy of Canada
* Immigration policy

Footnotes