Recession in Canada?

Recession refers to a significant drop in economic activity, lasting more than a few months, as measured by employment rate and real gross domestic product (GDP). They are undesirable, but in a market economy such as Canada’s cycles of recession and prosperity are recurrent features of long-term economic growth. Recessions occur for various reasons. Most often, businesses build up inventories and, consequently, cut back their production and lay off workers, thus depressing earnings. The spiralling effect of lower income and low spending also dampens confidence in the economy. Large-scale natural disasters such as floods and droughts or trade wars between countries can induce recessions

How does it affect Canadians?: During the last recession in the early 1990s, the Canadian economy shrank substantially. From 1990 to 1991, real GDP decreased more than 1 per cent, and the unemployment rate rose above 10 per cent in both 1991 and 1992. Governments, both federal and provincial, posted higher deficits because they collected less tax on income and corporate profits but spent more money on programs such as employment insurance benefits. Governments try to avoid or overcome recessions by adjusting monetary and fiscal policies—increasing spending, cutting taxes, and lowering interest rates—and each of these actions helps create demand for goods and services. The Bank of Canada reduced interest rates several times in the early 2000s to avoid a potential recession.

The 38 Qualifying Occupations

On November 28, 2008, Citizenship, Immigration, and Multiculturalism Canada Minister Jason Kenney announced the new instructions for the processing of all Federal Skilled Worker applications received since February 27, 2008. Under the Immigration Minister's new instructions, Canadian Immigration Visa Officers reviewing Federal Skilled Worker applications will process those from candidates who have at least one year of continuous full-time or equivalent paid work experience in the past 10 years in one of the following 38 qualifying occupations. These are listed by National Occupational Classification (NOC) categories. For more details click here>>

Immigration Hit New Heights

by T. Smith

The population of Canada grew more in the past three months than it has in any third quarter since 1990, according to Statistics Canada. The population hit 33,441,300, up 129,900 since July. Every province and territory saw rising numbers, except the Northwest Territories, which saw a decline of 132 residents. Most of the growth was recorded in Western Canada, with Alberta continuing to report the highest numbers. New Canadians and people who moved to Alberta from other provinces numbered 25,640 in the third quarter of 2008, likely due to the continuing job opportunities offered in that province, Statistics Canada said. "Usually, people go where there are jobs, so that explains the strong tendency toward Alberta," said Hubert Denis, senior analyst for Statistics Canada. The agency said growth across the country was due mostly to immigration. Between July 1 and Oct. 1, 2008, 71,300 people entered Canada. Numbers have increased everywhere since provinces began stepping up their efforts to attract people internationally.

Immigration changes - Outlook for 2009

The Conservative government announced their intention to introduce significant amendments to Canada’s immigration system. Many heated debates, numerous stakeholder consultations, a federal election, and a new Immigration Minister later, the amendments were finally announced on November 28. Immigration remains a key priority for Canada, but now has a slightly stronger focus on economic immigration. Citizenship, Immigration and Multiculturalism Canada (CIMC) Minister Jason Kenney recently announced the details of the Canadian Government’s new Action Plan for Faster Immigration, which sets new regulations for the Federal Skilled Worker program of Canadian immigration. “We expect new federal skilled worker applicants, including those with arranged employment, to receive a decision within six to twelve months compared with up to six years under the old system,” said Minister Kenney.

Immigrants stuck in low-paying jobs: Study

by IANS

Professionals and degree-holders seeking immigration to Canada, beware! The number of degree-holder immigrants, including doctors and engineers, stuck in jobs with low education requirements, such as clerks, truck and cab drivers and salespeople, has risen steadily since the last recession of early 1990s, says a new study by Statistics Canada. Employment problems for new immigrants will only get worse as Canada enters recession, experts warn. The study titled “Immigrants’ Education and Required Job Skills” covered the period from 1991 to 2006. It found that in 2006, established immigrants - those who had lived in Canada for between 11 and 15 years - had more difficulty finding jobs as per their educational qualifications than they did in 1991. During this 15-year period, it said, the proportion of qualified immigrants stuck in jobs needing low educational qualifications rose steadily. In 1991, according to the study, about 12 percent male immigrants with a university degree had jobs with low educational requirements. By 2006, this proportion rose to 21 percent.

Foreign-Born Population at a 75 Year High

The most recent Statistics Canada report focuses on “immigration, citizenship, language, mobility and migration” in Canada, based on the 2006 census. It paints a picture of an increasingly diverse Canadian society and highlights the important contribution of immigrants to Canada’s growth and development. Canada’s foreign-born population grew four times as fast as the Canadian born population over the past five years, now accounting for one out of every five Canadian residents. Since the last census in 2001, over 1.11 million immigrants have settled in Canada, an increase of 13.6 per cent. Not in 75 years has the foreign-born population been so high. In 2006, nearly two thirds of these newcomers were from Asia and the Middle East, marking the first year that the foreign-born population from Asia and the Middle East exceeded that from Europe. European-born immigrants, who made up the bulk of immigrants 35 years ago, accounted for only 16 per cent in 2006.

Canada is the Most Welcoming Country

by Albert Smith

Immigrants and temporary migrants have become increasingly important to Canada’s population growth and its economy. Canadians are grateful to the contributions of foreign workers, and have established a vast network of settlement services to help newcomers feel at home. A recent HSBC survey has given Canada the top spot when it comes to friendliness and welcoming newcomers by the locals. According to the HSBC Bank International’s Expat Explorer Survey, people who relocate to Canada have comparatively easy time making friends with locals, joining local community group and learning a new language. In fact, 95 percent of people surveyed said that they have made friends with locals in Canada. A close second spot was acquired by Germany with 92 percent, followed by Australia with 91 percent. The study surveyed 2,155 Expats in 48 countries and measured the relative friendliness of the countries based on four categories: number of respondents who joined the community groups, number of respondents who joined local groups, percentage who bought property, and respondents’ ability to befriend locals.

Record numbers expected in 2009

by Gareth McConnell

A further 240,000−265,000 new permanent residents are expected to move to Canada next year. The number has been boosted by the increase in the number of provincial nominees to 26,000 and a slight increase in economic migrants (156,000). The numbers of economic migrants coming to live in Canada will be boosted by the Action Plan for Faster Immigration, introduced by Jason Kenney, minister for citizenship, immigration and multiculturalism Canada (CIMC), earlier in 2008. This new set of regulations were intended to increase the speed with which people can be accepted by Canada immigration under the Federal Skilled Worker Program.