Engines of Growth BCC report: Immigration

Appears largely influenced by Skuterud and Worswick, appropriate, and an apparent ongoing distancing from the Century Initiative and others that have focussed more on population growth than productivity, although have also been pivoting:

2. Canada needs a talent strategy that includes high-skilled immigration

It has been observed by economists that humans are unique among species in their ability to create new knowledge, and it is this accumulation of knowledge that propels economic growth.

Education and talent are the cornerstones of economic growth because they foster innovation, increase productivity and enhance a country’s competitive edge. A well-educated and skilled workforce drives technological advancements. Investments in education and talent development create a knowledgeable labour force capable of sustaining and accelerating economic development, ensuring long-term prosperity and resilience in a global economy.

Advanced technology development is a highly competitive and future-oriented endeavor. Two prominent international examples of success in this area are the U.S. Defense Advanced Research Projects Agency (DARPA) and the German Fraunhofer-Gesellschaft. These organizations encourage firms in essential sectors to establish long-term technology objectives through clearly defined roadmaps that outline their vision and strategic plans for critical technological advancements.

Achieving these goals relies on world-leading R&D talent capable of pioneering solutions
to significant industrial challenges. This necessitates a comprehensive talent strategy focused on STEM (science, technology, engineering and math) fields, including the creation and expansion of advanced industrial skills training programs and postgraduate excellence programs in research-intensive universities.

Currently, Canada’s immigration policy appears to be overly concentrated on meeting the labour market’s immediate needs, particularly by addressing acute shortages in low-skilled and low-wage occupations that have arisen since the pandemic in sectors such as accommodation and food services. The current federal immigration strategy has increased the labour supply in Canada, but it has been ledby a significant surge in temporary residents.

Historically, the Canadian immigration system has worked well by using a points-based mechanism through the Express Entry system to evaluate applicants, prioritizing those with higher education, work experience, language skills, and other factors that contribute to their potential economic contributions. This economic focus ensures that the system prioritizes skilled workers, professionals, and entrepreneurs, allowing newcomers to contribute positively to the labour market and economy.

A recommendation from a recent RBC report is on point:

“The federal government needs to update immigration policies to focus more strategically on immigrant outcomes and the long-term structural needs of the labour market, while keeping in mind the infrastructure capacity to accommodate newcomers. Addressing this will be key to maintaining economic prosperity over the long run, and Canada’s high quality of life.”

To enhance economic growth, it is essential to implement a robust immigration policy.

Economic immigration drives innovation and entrepreneurship, contributing significantly to economic dynamism. A well-structured immigration policy is vital for fostering a more dynamic and technology-driven economy.

Recommendation 17: Design immigration policies to prioritize long-term economic growth over short- term labour needs. This strategy will sustain the supply of high-skilled talent essential for productivity growth.

Source: Engines of Growth BCC report: Immigration