Migrant influx stunts Canadian wages

Last month, the Canadian Government announced a plan to import 1.2 million migrants in just three years:

Immigration Minister Marco Mendicino unveiled what he called an “ambitious” three-year immigration plan today that set targets for bringing skilled workers, family members and refugees into Canada.

Canada aims to bring 401,000 new permanent residents in 2021, 411,000 in 2022 and 421,000 in 2023.

The numbers — which represent an increase of about 50,000 for each year — aim to compensate for the shortfall this year due to the pandemic and represent about one per cent of Canada’s population…

“Put simply, we need more workers, and immigration is the way to get there,” [Immigration Minister Marco Mendicino] said…

The breakdown of next year’s plan includes:

  • 232,000 immigrants in the economic class.
  • 103,500 in the family class.
  • 59,500 refugees and protected persons.
  • 5,500 on humanitarian and compassionate grounds.

The declaration came after Canada’s immigration intake fell to only 184,000 new permanent residents in 2020.

Hilariously, the Financial Post reports that the “influx of immigrants is stagnating wage growth” in Canada because “with fewer labour shortages acting as leverage, workers are scoring tiny wage increases that leave them poorer after inflation is factored in”:

Canada, unlike the U.S., quickly started welcoming foreign workers and students again after a brief pandemic halt in what is part of a years-old, pro-immigration policy that’s provided its economy with a much more work-ready labour force.

In the five years through 2020, about 1.9 million newcomers came to the country, up from 1.2 million the previous five years…

Companies have been filling job postings at a breakneck clip, pushing payrolls back above pre-pandemic levels and allowing them to ramp output back up. But workers, with fewer labour shortages acting as leverage, are scoring tiny wage increases — currently running at 2 per cent on average — that leave them poorer after inflation of almost 5 per cent is factored in…

In the U.S., which has orchestrated a sharp drop in immigration, the labour-market dilemma is the inverse: Workers are scoring the biggest pay hikes in decades — nearly matching soaring inflation…

In Ottawa, the bet for Justin Trudeau’s government is that the formula of more immigration and more job creation will help quell inflationary pressures…

Anyone still claiming that mass immigration has no impact on wages is either a paid industry shill or stupid. Canada is engaging in basic supply-side economics here: flooding the market with people to keep wage pressures from building. What’s hard to understand?

Canada’s biggest housing markets are also already among the most expensive in the world, which will be made worse by its mass immigration program.

Funneling hundreds of thousands of migrants into these cities will obviously drive up demand for housing, exacerbating Canada’s housing affordability problem to the detriment of young Canadians. It will similarly crush-load infrastructure and worsen congestion, reducing livability and placing more strain on Canada’s natural environment.

The Nordic countries of Denmark, Sweden, Finland and Norway provide a sensible model of growth. These nation’s are considered by many to be among the best run and happiest nations of the world that enjoy high productivity and high living standards. Moreover, they achieved this status without resorting to high immigration-fueled population growth:

Canada (and Australia) should emulate these nations instead of resorting to unsustainable ponzi-led growth.

Unconventional Economist
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Comments

  1. Readers are directed to boy-wonder Andrew Charlton’s puff piece on today’s Costello NineFax. He admits Australian voters don’t want Big Australia Mark II. But, of course, the poor dears can safely be ignored, because trusty LibLab will be targeting “young employable skilled and single” migrants who “power our economy forward”. You just need to give a person an economics degree and pay them a lot of money at Accenture and they will gladly write this patronising nonsense.

    • “young employable skilled and single” migrants who “power our economy forward”. odd way to say young and vulnerable migrants who will be bullied into working for nothing. but hey all these ‘economists’ have always seemed like they are on a different planet

  2. Totes BeWokeMEMBER

    https://www.smh.com.au/national/border-reopening-a-chance-to-reset-immigration-program-20211125-p59c07.html

    …”Andrew Charlton is a managing director at Accenture, adjunct professor at Macquarie University and co-director of the e61 Institute for economic research. He was an economic adviser to Labor prime minister Kevin Rudd”…

    MSM forcing immigration down our throats more than ever.

    Apparently mass immigration doesn’t harm wages. According to an ex Rudd adviser.

    Rudd, Labor, LNP, MSM. All the same thing. Enemies of Australia.

  3. It’s getting harder and harder to not assume that Australia is just another franchise of an unannounced pan-national neoliberal organisation. The lockstep and synchronised actions of the various governments ( Canada, UK, Australia, NZ etc ) are even upheld by our respective opposition parties. There’s no voting our way out of it all. Democracy is an illusion.

    • Totes BeWokeMEMBER

      Great comment. Yep, they’re all in on it.

      Check out Insiders Jim Chalmers interview last Sunday. He’s asked a question, adjusts a hidden ear piece, then clarifies what “he meant” in his previous answer.

      Labor, LNP, MSM, all sing the same song.

      • Fabian AlderseyMEMBER

        I don’t know whether or not he got “instructions” in his ear piece. Maybe, maybe not. I looked at the video. I know for myself, a lot of ear pieces don’t fit neatly and stay locked in place in my ears, so I’m constantly touching them. To me, touching an ear piece doesn’t mean that there’s any audio coming through.

  4. Is “THE’ theme in the Commonwealth countries where euphemistically ‘job-seeking migrants’ are required to fill the ‘skill shortages’- is an easy sell to the apathetic citizens of NZ, CA and OZ.
    What’s required to keep these vintage economic engines roaring instead of the current ‘fish nibbling’ they are exhibiting, is another serve of mortgage holders and tenants. All that juicy ‘equity’ that has been created’ in the last few will now be relied upon to drive the ‘investor’ (LandLord) class and do they have ever have ‘class’. The ‘lords’ and ‘barons’ sit just below the kings/queens and rightly above the knights / vassals as we merrily return to feudalism.
    How it’s going in Canada- https://www.greaterfool.ca

  5. Meh, Prime Minister Closseau is a woke joke like Queen Jacinda across the pond. They’ll cry crocodile tears for lack of affordable housing and stagnant wages but then do the bidding of big business and make sure they don’t do anything to possibly be seen as racist. Pansy Albo will be the same if he makes it to the Lodge.

  6. Display NameMEMBER

    It is impressive that a country like Sweden, population 10M, can make cars and a jet like the Grippen. What do we make in Australia? Lots of household debt, maybe add in TimTams.

  7. We know what the end game is, no immigration of working age, then ditch JobSeeker, and all those Australian ‘welfare wastrels’ can be forced to travel, take suboptimal or non award pay and conditions; eugenics really isn’t it?

    If one does not focus upon the present or recent past, the more credible OECD population data, parses out temporary churn over, which inflates Australian data (thanks to the UNPD’s NOM); then you see the reality of declines in permanent working age population who are expected to pay tax in support of increasing retirees/pensioners.

    Careful to not support a radical right libertarian trap to stop immigration, that does nothing to improve employees wages or conditions, justifies crashing JobSeeker, then the real Kamikaze mission will be to nobble not just super or the SCG, but age pensions too…. with much authoritarianism in the background to deal with resistance…..