The new Canada-U.S. border deal will cost Canadian taxpayers at least this much

The formal analysis (more solid than the one on self-administered citizenship oaths):

Closing the Canada-U.S. border to asylum seekers is projected to cost Canadian taxpayers at least $60 million over 10 years. But that analysis doesn’t include costs for the Mounties to beef up “challenging” enforcement efforts.

In March, Ottawa and Washington expanded a bilateral agreement to turn back irregular migrants trying to cross into the other country for protection, but a cost-benefit analysis has only been recently published in the Canada Gazette.

“It will be challenging for the RCMP to consistently enforce the Regulations given the size and terrain of Canada’s landscape, challenges posed by Indigenous and private lands, as well as the limitations of existing border technology (e.g. sensors, cameras),” said the public notice about the amended Safe Third Country Agreement (STCA).

“Responding to reports of border crossings and intercepting irregular migrants between the ports is resource intensive and risks diverting policing resources.”

The RCMP is responsible for patrolling unofficial border crossings. It will be funded for broader initiatives to replace and modernize ISR equipment (Intelligence, Surveillance, Reconnaissance) and to form a new project team to determine technological and other needs.

But the notice said these expenditures are not treated as incremental, hence not included in the analysis.

“It is acknowledged that investment in these new resources will likely help support … the broader objective of a reduction in irregular migration following implementation of the regulatory amendments,” it said.

The estimated $61.5-million cost in today’s dollar value only covers transition costs, upfront capital costs, and ongoing processing, operations and enforcement costs for the immigration department and Canada Border Service Agency. It includes:

  • $560,000 this year only for communications products, IT costs, updates to program delivery instructions, other administrative materials, and training costs;
  • $1.28 million over the next decade to purchase vehicles to transport migrants, and for acquisition and installation costs for office equipment and renovations to create additional processing spaces such as interview rooms due to more dispersed arrival points for asylum claimants across the border; and
  • $59.61 million over 10 years for ongoing processing, operations and enforcement costs for tasks such as eligibility determinations, investigations, intelligence, reviews, infrastructure oversight, litigation and vehicle maintenance.

As a result of evolving migration routes, officials say there will be additional policing costs in border communities and in popular destination cities to respond to calls, conduct investigations related to irregular migration, and to respond to suspected cases of human smuggling.

The public notice says there will also be potential costs or risks for asylum claimants who choose to game the system.

“Claimants may face increased danger, such as involvement with human smugglers and may be at risk for physical, mental or financial abuse. They may also face risks from exposure to extreme weather conditions if they cross at remote locations or fail to secure access to shelter,” it said.

“This could increase the health and security risks of living in dangerous natural habitats, as well as a possible lack of access to food, water, health care and other basic services.”

Since 2017, Canada has seen a surge of irregular migrants via the U.S., which reached almost 40,000 asylum seekers last year. More than 90 per cent of them came through the world-famous Roxham Road in Quebec, which put pressure on the country’s asylum system and local housing and community services.

Restricting access to asylum throughout the entire border will improve border integrity and support the standardized treatment of all arrivals, regardless of where migrants cross, said the notice, which also cautions against any promised outcomes on the level of irregular migration.

“The impact on asylum volumes is dependent on many factors, including the ability to effectively address border crossings as new irregular routes emerge and the risk that individuals will continue to evade application of the STCA,” it said.

“As such, the extent to which volumes may be reduced is largely unknown and the magnitude of this impact cannot be estimated; therefore, for cost-benefit analysis purposes, the benefits of a reduction in asylum claimants are not quantified or monetized.”

It also noted that no public consultations were undertaken for the changes to the bilateral pact because it would have created a surge of migrants trying to sneak into the country before the new rule took effect.

Source: The new Canada-U.S. border deal will cost Canadian taxpayers at least this much

Paradkar: Dear immigrants: Coming to Canada? Here’s what you’re really in for

While a bit overboard, all too accurate given the various changes to ease business restrictions on temporary worker permits and limits on employment time for international students:

Hello, new immigrants. Most of you are likely coming to Canada in search of a better life and better opportunities than in the lands you leave behind. The good news is that many of you will find a job. Some of you will even be well-paid. But more than a few will find your dreams of stability and comfort seriously challenged.

For those who take on the vast majority of jobs Ontario is looking to fill — in restaurants and in bars, in truck transportation, construction, nursing homes — you’ll first have to survive the savageries of capitalism and xenophobia.

As Canada opens its doors to half a million immigrants annually — about half of whom will land in Ontario — we say welcome, today’s newcomers. But do you know what you’re in for?

Canada has historically benefitted from immigration. Many immigrants, particularly higher skilled ones, have also benefitted by coming here. But this round of gate-opening reveals the truth about Canada’s economic immigration policy. It’s designed in the interest of a stronger economy, which serves, first and foremost, not the majority of immigrants, who will be channelled into unskilled, often temporary jobs, but those at the top.

What Canada wants, but is not saying out loud, is a servant class; a vast army of workers prepared to accept the low-paid jobs no one else wants. And given how the economy is structured along with our poor preparedness to receive these newcomers, it’s clear we want to keep them in that position.

The current immigration push continues a centuries-old tradition of worker exploitation in the Americas. When European settler attempts to enslave Indigenous populations failed for various reasons, indentured servants arrived in the 1600s to care for the vast lands the earliest settlers had got, bought or stole.

Then came chattel slavery, itself created because the elite capitalists realized free labour by commodifying humans kidnapped from afar was more profitable than cheap wage labour.

When, some 200 years later, Britain abolished slavery in most of its colonies in the 1830s, this continent experienced a “labour shortage,” like the one today. That led to Britain importing indentured or bonded labour from colonies such as India, particularly on its plantation islands.

Then, as today, “labour shortage” didn’t mean there was a lack of human bodies to do jobs that build societies. Nor did it mean there was a lack of skills to do them. Then, as today, it meant something about the shifting dynamics of demand and supply.

A higher demand for labour shifts power toward workers, who agitate for better wages and working conditions. Flooding the market with a supply of workers swings that shift in power back to the owning class.

Today’s immigration push comes with baked-in economic disenfranchisement. Temporary work in precarious jobs leaves workers vulnerable to abusive working conditions.

Much like the West Indian Domestic Scheme of the 1950s and ’60s, when Canada sought Black Caribbeans to be domestic workers, the floodgates are opening today through initiatives such as the Temporary Youth Worker Program and the Federal Skilled Trades program, and via colleges and universities, which are taking increasing numbers of international students.

According to Statistics Canada, a vast majority of Ontario’s job vacancies right now — 60 per cent — require a high school graduation or less, many needing less than one year of experience.

The Federal Skilled Trades program doesn’t require candidates to have secondary education but it will prioritize those with a certificate or diploma or degree. That means many economic migrants will be overqualified for the jobs being asked of them, but they will come, perhaps hoping they’re at least getting a foot in the door.

Once in, however, these immigrants will have been slotted into the jobs Canadians won’t do for the wages being offered.

The overt racists and xenophobes also grease the wheels of this exploitative system.

If employers see labour as robotic capital-making units, xenophobes, easily made insecure by “outsiders,” keep immigrants bracing for attacks on their very existence, leaving them grateful for the crumbs, told their deplorable circumstances are a result of their not working hard enough or their supposed inferiority.

The economy is structurally built to see full employment — everyone having a job — as a problem.

A seventh straight month of job gains and near-record-low unemployment of five per cent is leading economists to predict that the Bank of Canada might well raise already high interest rates in coming months to “cool the economy” and inflation.

In this way of thinking, rising wages for, say, an average grocery worker in Canada, who earned $18.97 per hour in 2022 is a threat to the economy. But grocery magnate Galen Weston earning $5,679 an hour is not.

This thinking is why employers freely blamed programs such as Canada Emergency Response Benefit — that offered about $500 a week to those who lost income due to COVID — for “spoiling” workers.

Far better to call a person earning $500 a week, and not wanting to work for less than that bare minimum, lazy than pay them higher wages.

Perhaps the new immigrants coming in to rescue our economy, including those who have to remain jobless in service of this country, might be thanked in other ways? Maybe they’ll be housed relatively easily? Not have to worry about finding good schools for their children? Or have a safety net should they fall ill?

No such luck. Provincial parsimoniousness has already extended to defunding education, defunding health care and not building enough or affordable houses on land already earmarked for homes.

Politicians and their owning class friends are eyeing for-profit education and for-profit health care once the current systems are squeezed to the point of hopelessness. Large developers, quite coincidentally, bought precisely those thousands of acres of environmentally sensitive and protected Greenbelt land that Ontario’s premier opened up to build housing.

Yes, developers will need construction workers willing to work for less than a decent wage, if they hope to pad their profits. Instability in foreign lands fostering desperation can be a wonderful boon.The very rich benefit mightily from boosted immigration in other ways, too. More people means more consumers and buying food is non-negotiable. Ka-ching, that sound of cascading coins, is an inadequate metaphor to capture the surge in sums of money for people like Weston, whose family’s net worth is about $8 billion US.

We — as a nation — either need to be better prepared to receive newcomers or, failing that, be honest and say: Welcome, newcomers — welcome to your new life of multi-dimensional suffering.

Source: Dear immigrants: Coming to Canada? Here’s what you’re really in for

Leuprecht: Closing Roxham Road loophole a benefit to all migrants

Of note:

To stem the surge in irregular migration at Roxham Road, the U.S. and Canada recently extended their Safe Third Country Agreement (STCA), to apply between ports of entry as well. Under the renegotiated STCA migrants must apply to a Canadian agency before crossing from the U.S. into Canada, and vice versa.

Both countries can now turn back asylum seekers attempting to cross irregularly or without authorization. This “new deal” is good news for migrants and for the continent overall. In lieu of border disorder, it affirms three fundamental principles of a sustainable migratory system: the orderly processing of documented migrants, due process and the rule of law, as well as the efficient and effective use of scarce public resources.

Migrant advocates often argue that borders should be open: Whoever shows up at a border should be allowed to cross and lodge a claim. But who shows up is not random. Rather, Darwinian survival-of-the-fittest is fundamentally incompatible with a principled approach to the protection of refugees and asylum seekers. Instead of unequal access for those who can afford to pay, the STCA is an important step toward levelling the playing field for all vulnerable people in genuine need of protection.

Neither domestic nor international law offer an internationally accepted definition of “migrant.” To the contrary, the careless and indiscriminate use of the term ignores the democratic socio-political process that defines a non-citizen’s status, which determines conditions of admissibility that distinguish undocumented migrants from economic immigrants, refugees and asylum seekers. States have legal and moral obligations to immigrants and refugees, and to consider asylum claims. Under domestic and international law, these obligations differ by such criteria as human vulnerabilities, labour needs and other material and ethical considerations.

Public perception of queue jumping at Roxham Road challenges the legitimacy of a well-administered migration policy that is fair for the most vulnerable and grounded in the rule of law. Irregular migration puts at risk the integrity, sustainability and legitimacy of the social contract on which the domestic migratory regime is based. Such a contract preserves the integrity of a state’s borders and the successful political and economic socialization and integration of migrants, as well as social justice and the collective benefit of migration in fostering prosperity.

These are the three cornerstones for the legal regime that admitted a record one million newcomers (immigrants and non-permanent residents) to Canada in 2022. However, polls show that the impression that government is no longer able or committed to the orderly management of the state’s borders causes popular support for legal migration to decline and risks stoking nativist populism that calls into question the sustainability of the entire migratory system.

With population expected to grow by 2.5 billion in the Global South over the next 25 years, that system is coming under massive strain. The number of people who strive for asylum or refugee status in the Global North vastly exceeds the fiscal and social capacity of receiving countries. The current refugee system sprung up after the Second World War in an acknowledgement that certain people deserve temporary protection. Evidence in Canada and the U.S. shows that many asylum seekers today are not seeking temporary protection: their intent is to immigrate.

In a world where travel is relatively cheap and easy, refugee and asylum provisions have become a back door for economic immigrants who would not otherwise be admissible, and who do not qualify under exemptions that would allow them to lodge a claim at an official port of entry. In 2022, for example, 40,000 people crossed into Canada irregularly from New York at Roxham Road, whose location has made it a semi-unofficial port of irregular entry. Yet, almost half had entered the U.S. legally. At Roxham Road, 40 per cent who cross end up having their claims denied. Although the rate is above average, even failed claimants are unlikely to be removed.

For all intents and purposes, many are economic migrants. Claimants originate in countries marred by conflict, corruption and dire economic conditions: Central America, Venezuela, Cuba, Haiti. Sophisticated human smuggling networks, which fall under the UN Convention on Transnational Organized Crime, prey on their misery. Yet, it is not illegal for someone to avail of the services of a smuggler or even to commit identity fraud for the purposes of making an asylum claim. In fact, the UN Office on Drugs and Crime estimates the vast majority of people who try to make it to North America engage the services of human smugglers and what is now a $10-billion-a-year industry.

The STCA discourages irregular (asylum) or illegal entry (human smuggling) at Roxham Road. Claimants who fall under an exemption can still register their claims at Lacolle, Que., which is the closest point of entry. The only “new” element is that on either side of the border claims have to be registered at a formal port of entry. The renewed STCA manifests the open border paradox: co-operative bilateral and binational governance and border management is actually essential to advance mutual security, prosperity and democracy, while mitigating the exploitation of vulnerable migrants.

To be sure, the STCA is no silver bullet. Its effectiveness hinges on co-ordinated enforcement at and beyond the border, Canada stepping up to take a bilateral and trilateral approach with Mexico and the United States to help relieve despair at the U.S.-Mexico border, far-reaching reforms to the UN Convention on Refugees and to the U.S. asylum system, as well as greater access to legal migration pathways in the Global North, where jobs are aplenty and demand for unskilled labour is high.

Victims in need of protection should have equal opportunity to lodge their claim, offshore, while people on the move should lodge a claim in the first country where it is safe for them to do so. Instead of ideological turf wars over the STCA by critics intent on stigmatizing inequalities between the U.S. and Canadian systems, comprehensive reform of the North American and global migration systems is in order if such tragedies as the detention centre fire in Ciudad Juárez, Mexico, that killed 40 last month, and the eight migrants who drowned in the St. Lawrence River two weeks ago, are to be prevented.

Special to National Post

Christian Leuprecht is Professor at the Royal Military College of Canada and Queen’s University, and a senior fellow at the Macdonald-Laurier Institute. Guadalupe Correa-Cabrera is Professor in the Schar School of Policy and Government at George Mason University. 

Source: Opinion: Closing Roxham Road loophole a benefit to all migrants

COVID-19 Immigration Effects – February 2023 update

Latest monthly update. Of particular interest, percentage of TR2PR of permanent resident admissions is over 60 percent in both January and February. Not sure whether this reflects a conscious decision to address housing availability and affordability concerns, given TRs already in Canada, or not.

Yalnizyan: Allowing undocumented immigrants to stay and work in Canada — permanently — would benefit us all

Rather than another piecemeal change to immigration policy, the government needs to move from the narrow Permanent Residents focus of annual planning and expand that to include targets (i.e., caps) on temporary workers and students and align a global permanent and temporary resident immigration plan with housing, healthcare and infrastructure capacity.

Not convinced that the economic benefits will be as strong as Armine suggests and we would be largely increasing the numbers of lower-paid and lower-skilled, rather than the higher-skilled needed to improve productivity.

It would also be helpful to have more accurate numbers on the number of undocumented, including visa overstays as the US regularly does as the figures cited by advocates have never been rigorously substantiated (CBSA should be able to collect information on visa overstays):

Want higher pay? A bigger economy with more household purchasing power? More revenues for public programs? Less exploitation of people at work and in society?

It’s all possible. Everyone can win, but the argument is counterintuitive, and may challenge your notions about fairness, process, and who gets to be Canadian. Stay with me on this.

The problem

Canada has long issued permits for people to temporarily come work and study in Canada, but the recent growth in this practice is staggering. By the end of 2022, in the name of fast-tracking solutions to labour shortages for business, the number of temporary foreign workers increased by 50 per cent compared to 2021, to almost 800,000 people.

In less than a generation, there has been an 8.5-fold increase in the numbers we permit to temporarily come work and study here, to 1.6 million in 2022 from 189,000 such residents in 2000. There was no public debate if this was good policy.

Colleges and universities now rely on the high fees they can charge international students, and we now take for granted the endless army of permanently temporary workers who chop and clean in restaurant kitchens, erect and renovate buildings, clean at night and care for your loved ones during the day.

We don’t know what share of temporary residents come here hoping to stay, but the complex maze of rules and conditions — requiring multiple applications and precise timing — guarantees some people will find no pathways to permanence, and others will run out of time trying.

Some leave, some are deported, and some live among us without official status. That opens the door to all sorts of bad economic outcomes. In 2007, the RCMP said between 200,000 and 500,000 were undocumented. It’s surely higher today, given how we’re expanding the inflows. That’s bad for them, and it’s bad for us. 

The fix

The solution is a regularization program for those who have simply overstayed time-stamps on their authorized entries, or whose official authorization is about to run out, with either no path to permanence or a tortured one, at best.

We need them, and they want to be here. Let them stay. Permanently.

Let me show you what this could mean for just one person.

Meet Sam

Sam (I have changed his name to protect his identity), came to Canada from India in the spring of 2019 as a bright and hopeful 17-year-old international student, legally permitted to study and work here.

His parents borrowed the first instalment of $8,500 for his $25,000-a-year, two-year business degree at a southern Ontario college. He worked part-time at a gas station, where he made $900 a month, covering his rent ($550), food and bus fare, but not much else. He, too, had to borrow money to cover the costs of education. 

When COVID hit, he was worried he’d fail because online learning was such a disorganized disaster, so his boss suggested he switch immigration status from international student to temporary foreign worker. The boss introduced him to an immigration “specialist” who charged $3,500 to prepare a Labour Market Impact Assessment, $2,500 for a work permit, and a $1,000 fee.

The specialist bungled the application process, leaving Sam in legal limbo after almost a year of waiting. Meanwhile, he was working 50 hours a week, for cash. It was half the minimum wage. He knew what his rights were, but could not enforce them.

Desperate to avoid deportation, he applied for a temporary work permit through the International Mobility Program. Another year, another negative result because of filing mistakes, another $3,000.

Sam was exploited by everyone: the post-secondary system, his employer, the immigration specialist. He is terrified of staying. He’s terrified of going.

As an undocumented worker, he can only find cash jobs that are dirty, dangerous and difficult. Returning to India would mean he would never earn enough to repay his loans.

I met Sam through the Migrant Workers Alliance for Change, whose ambitious and strategic advocacy on this issue has built pressure on the federal government to make good on its promise to deal with a problem of its own making. A move is expected soon.

That could mean a lot of things. All involve better economic outcomes. How much better? 

By the numbers

According to a 2021 study by the Center for American Progress, regularizing the undocumented in the United States could add $1.7 trillion in GDP over the next 10 years and 439,000 jobs over and above the work done under the table by the roughly five million undocumented workers in the U.S.

(Canada is a country more reliant on newcomers than the U.S.; and while I was unable to find such analysis here, similar dynamics apply, on a smaller scale.)

It is estimated these workers would see about $4,000 more a year in the first five years after becoming a permanent resident (a 10 per cent increase), and $14,000 more annually in the next five years (a 32 per cent increase).

That’s because regularization permits workers to find better jobs, better opportunities, and the chance to openly use their skills. Status also gives people access to education and health care, and protection by labour standards lessens workplace injuries and illness.

Then there’s the payoff: better-paid workers and those no longer in the underground cash economy pay more sales taxes, property taxes (embedded in rents), and income taxes, supporting more public goods.

Regularization = better jobs + stronger public services + more economic resilience. It’s beautiful math. 

Win-win-win … when?

Regularization is a common practice in Europe, but it hasn’t happened in Canada since 1973. 

When Pierre Trudeau regularized almost 40,000 people, 60 per cent were undocumented residents, but 40 per cent were those seeking transition from temporary to permanent status, mostly international students and visitors.

It was a legacy move, securing decades of newcomer support for Liberals, but it was not an obvious thing to do. In 1973, unemployment was rising due to the first global oil price shock.

David Moffette, professor of immigration policy at the University of Ottawa, underscored a surprising fact: “Nobody politicized the issue. Nobody said, ‘Don’t let these people in.’ There was no trace of opposition to the program.” The reality was that these people were already living and working here. Nobody wanted a growing population of the undocumented in Canada. We’re at a similar moment.

Locking the doors isn’t enough

The recent closing of Roxham Road and all unauthorized entry points to Canada locks the back door; but unauthorized entries (roughly 40,000 people in 2022) have never been the main source of undocumented populations. The vast majority become undocumented by overstaying time-stamps on authorized entries.

The federal government is aware.

Immigration Minister Sean Fraser’s mandate letter requires he build on pilot projects his government created in 2021-22 to regularize the status of some undocumented workers in critical sectors like health care and construction.

The take-up has been underwhelming, with these projects welcoming fewer than 10,000 people into the Canadian family, largely due to highly restrictive rules. Therein lies the clue for what comes next, and it looks a lot like the program of 1973: accept those who are already here — working, studying and contributing to communities across Canada — who want to build their lives here.

As the economy slows, providing permanent resident status to the undocumented and those holding temporary permits would maximize their economic and fiscal contributions.

That’s the business case. 

The humane case is an even easier one to make.

Instead of creating impossible Catch-22 situations for Sam and hundreds of thousands of people just like him, we could unlock his future — and in so doing, ours.

Source: Allowing undocumented immigrants to stay and work in Canada — permanently — would benefit us all

Skuterud: Using immigration to fill vacant, lower-skilled jobs is not sound economic policy

Mikal continues his crusade, rightly, against the flaws of the government’s approach in terms of productivity. Unfortunately, appears governments and business are not listening to these warnings:

Ask a Canadian why the government is increasing immigration and more often than not they will tell you: “to grow our economy.” Ask an economist and you’ll rarely get that answer.

Boosting the economic well-being of a population is indeed a worthwhile objective of immigration, but that requires more than simply making the economy bigger.

India’s economy is 60 per cent bigger than Canada’s and Switzerland’s is 60 per cent smaller. Is India’s economy what we are aiming for? Making the economic pie as big as possible is clearly not the objective. What matters is the size of the average slice when the pie is divided by the population.

The immigration policies that the current Liberal government adopted in 2015 reflected two decades of reforms focused on leveraging immigration to boost GDP per capita, the size of the average slice – a sound economic objective. But this government has shifted the objective to something new.

The government hinted at its objective in March when it rationalized Canada’s surging population – a one million increase last year – as an alleged economic necessity to fill vacant jobs, which if focused on lower skilled jobs is more likely to lower than raise GDP per capita.

Other times, however, the government has been less than transparent. The government’s opacity in what it is trying to achieve leaves us to guess.

Perhaps it is trying to maximize our population to raise our geopolitical influence on the world stage or to keep small towns in the Maritimes from disappearing.

But why then limit our annual immigration target to only 500,000? Why not announce to the world that if you get here, you will be granted permanent residency status on arrival?

That’s because economies have absorptive capacities. When our housing, social infrastructure and business-capital investments do not grow commensurately with our population, there are economic tradeoffs. Usually, the Canadians most adversely affected by these tradeoffs are existing immigrants competing for housing, jobs and social services in the same communities as the newcomers.

Perhaps the objective is humanitarian, that is it’s more about boosting the economic well-being of the newcomers themselves. If that is true, however, then we should target the world’s poorest.

The world’s 20 poorest countries accounted for 8.2 per cent of the world’s population in the 2015-21 period but only 4.8 per cent of Canada’s new immigrants. The share of immigration dedicated to humanitarian objectives in the government’s latest targets is 19.8 per cent in 2023, 18.5 per cent in 2024, and 16.2 per cent in 2025. Humanitarian ideals is clearly not what this government is focused on.

The reality is that the objective of this government’s immigration policies is not the size of the economy, population growth, humanitarianism or GDP per capita.

Leveraging immigration to boost GDP per capita requires attracting the world’s best and brightest to drive innovation, productivity growth and job creation in advanced sectors that are intensive in new technologies, research and development, and STEM skills. That does not seem to be this government’s priority.

The priority of this government appears to be filling existing job slots with workers regardless of the value added of those jobs. The goal is overwhelmingly to support businesses by alleviating the competitive labour market pressures they are facing to increase the wages and productivity of their work forces.

This is evident in the government’s recent decision to reverse regulations introduced by its predecessors in 2014 to curtail business reliance on low-skill temporary foreign workers.

It is also evident in the government’s recent decision to waive all limits on the off-campus work activity of foreign students, whose numbers are exploding and who are heavily engaged in low-wage work.

Most significant, the government is now proposing a reform of its system for selecting candidates for economic-class immigration, known as the “express entry system,” which will target immigrants to fill existing job slots rather than being focused on attracting the world’s top talent.

Debates about immigration policy are contentious precisely because people have different objectives in mind.

The Immigration Department is launching a new initiative that will solicit the views of Canadians on optimal immigration policy. It is hard to believe that this exercise will be any more productive than asking Canadians how they would change the income tax rates they pay.

If we are going to solicit the views of all Canadians, I propose a rule: In making public statements about how Canada should reform its immigration policies, we must all first declare what objective we think the government’s immigration policies should be aiming to achieve and how that objective is best measured.

Mikal Skuterud is a professor of economics at the University of Waterloo and the director of the Canadian Labour Economics Forum.

Source: Using immigration to fill vacant, lower-skilled jobs is not sound economic policy

Douglas Todd: B.C. desperately needs Ottawa to tie immigration levels to housing

More on housing and immigration levels:

Last week, hundreds of B.C. mayors and municipal councillors heard exactly why Ottawa’s failure to do so is causing them grief when it comes to providing adequate infrastructure, particularly affordable housing, but also schools, health-care facilities and daycares.

Delegates to the Union of B.C. Municipalities convention heard the country’s record population growth last year of one million was 96 per cent from offshore arrivals. Forty per cent of those newcomers were permanent residents and 60 per cent were temporary residents, especially foreign students.

The flood of foreign nationals is creating unprecedented demand for homes, which is pushing up rents and housing prices, which are among the highest in the world in cities like Vancouver and Toronto.

While people in Canada who already own homes, or serve as landlords, are benefiting, the rest are having to struggle with price-to-household income ratios that have soared since 2005 to among the worst in the Western world.

Chris Friesen, a national leader in providing settlement services for immigrants and refugees, told delegates it’s taking far too long for Ottawa to do the obvious and co-ordinate its migration policy with housing and other taxpayer-funded services.

Last year, British Columbia, which has almost no control over migration, took in 60,000 new permanent residents and 140,000 temporary residents, said Friesen, the longtime CEO of the Immigrant Services Society of B.C.

“And at the end of the day everybody is looking for a home,” said Friesen. Despite Kahlon’s recent efforts, Friesen criticized the way the NDP government in 2018 launched a 30-point housing strategy “and nowhere in that plan is there mention of immigrants, temporary residents or refugees.”

Friesen said service providers are increasingly talking about how the country’s “absorptive capacity” for newcomers is stretched. It’s not only affecting newcomers, he said, but Canadian-born residents, too.

A Statistics Canada report by Annik Gougeon and Oualid Moussouni showed immigrants bought 78 per cent of the homes purchased in Richmond in 2018, and more than 65 per cent of the dwellings bought in Surrey and Burnaby. Newcomers bought more than 40 per cent of homes in Vancouver, North Vancouver and New Westminster in 2018.

Dan Hiebert, professor emeritus of geography at the University of B.C., told the delegates that Canada would have to immediately build 1.36 million more houses and apartments just to reach the average homes-to-population ratios of the OECD, a club of well-off nations.

And to achieve “affordability” in the housing market, the Canada Mortgage and Housing Corporation has estimated the country would need to build 3.5 million extra housing units in the next seven years. Currently, only about 280,000 units are built each year.

The proportion of Metro Vancouver housing owned or rented by recent newcomers has doubled since 2016, according to census data. Growth rates are rocketing.

Permanent and non-permanent residents who arrived in the past five years alone now account for 14 per cent of Metro Vancouver’s population, eight per cent of all homeowners and 25 per cent of all renters.

Canada has not seen such high immigration rates since 1912, when 400,000 newcomers arrived, said Hiebert. Ottawa is now aiming for 500,000 new permanent residents each year. And that does not include hundreds of thousands of guest workers, plus the record 800,000 foreign nationals in the country on study visas.

Years ago, Hiebert referred to how Canada’s immigration policy is, in effect, Canada’s housing policy. Without knowing its origins, many UBCM attendees repeated the phrase frequently.

Hiebert suggested Canada’s dilemma is that arguably there might not be enough people to fill the country’s labour market, but there are too many for Canada’s housing market.

The vice-president of the Vancouver Board of Trade, David van Hemmen, said B.C. businesses are having difficulty attracting talent because of the alarming cost of housing. Some businesses, he said, are moving operations to Alberta or Washington state, to avoid B.C.’s daunting land costs.

While panelists and delegates consistently said the country should welcome newcomers, some civic officials who went to the microphones remarked on how Ottawa’s migration targets are “aggressive.”

Carling Helander, a provincial government immigration policy specialist who sat on the panel in lieu of Municipal Affairs Minister Anne Kang, acknowledged B.C.’s quest for new workers to address labour shortages creates a “circular loop” that tends to hike housing costs.=

A recent Gallup poll revealed 75 million people around the world want to move to Canada, the delegates heard. In addition, an Angus Reid Institute poll found newcomers are enthusiastic about getting into the housing market.

While 59 per cent of Canadian-born residents said “it’s important to own a home to feel like a real Canadian,” that figure jumps to 75 per cent among recent immigrants. While the individual earnings of recent immigrants are below average, Hiebert said household incomes are higher than most because more people tend to inhabit the same dwelling.

Friesen cited how the Liberal government’s humanitarian approach to asylum seekers from war-ravaged Ukraine exemplifies the absence of co-ordination between federal migration policy and local housing needs.

More than 175,000 asylum seekers from Ukraine have already landed in Canada, said Friesen. But 850,000 more have applied for refugee status. It’s just been announced they will have to forfeit their refugee application if they don’t get to Canada by March, 2024. All this, Friesen said, is being done without housing co-ordination.

The ISS of B.C. already has 13 full-time staff devoted to finding houses for asylum seekers and other newcomers, said Friesen. “Over 60 per cent of them land in Surrey in basement suites.”

Similar to B.C.’s housing minister, Friesen said this country badly needs a 10-year population growth strategy that matches arrivals with housing.

Source: Douglas Todd: B.C. desperately needs Ottawa to tie immigration levels to housing

Canada’s housing and immigration policies are at odds

More commentary on the disconnect between immigration and housing (and other infrastructure and services):

Housing affordability has metastasized from a Toronto and Vancouver problem to a national crisis. Double-digit rent increases have hit traditionally more affordable communities coast to coast, and the cost of home ownership remains persistently high amid rising interest rates. One of the main reasons for the lack of affordability, according to our recent report, is the misalignment between Canada’s different levels of government.

Over all, Canada’s system of decentralized federalism has served us well. Allowing different levels of government to make decisions that suit their own contexts is usually the right approach when it comes to program delivery. A century ago, Louis Brandeis, then a justice on the U.S. Supreme Court, famously referred to states as “laboratories” for policy experimentation. This holds true for Canadian provinces, and on the whole, the structure is healthy for a medium-sized country spread out over the world’s second-largest land mass.

Many factors have contributed to eroding housing affordability, but the fundamental problem is a growing mismatch between supply and demand. While residential construction in Canada has plateaued, falling well short of historical highs, our population is growing faster than that of any other G7 nation.

Canada’s population growth averaged 422,000 additional inhabitants per year (July to July) between 2012 and 2022, compared with 335,000 annually over the previous decade. This trend is accelerating, with net growth of more than 500,000 inhabitants in three of the past five years, including a record 703,404 between 2021 and 2022.

Meanwhile, housing completions have stagnated over the past five decades. Between 2012 and 2022, an average of 195,000 homes were built annually, down from 199,000 annually the decade before – and 229,000 annually during the 1970s, Canada’s home-building highpoint.

Which brings us back to Canada’s system of governance. Population growth is controlled in large part by the federal government, and home building primarily by provincial and local governments.

Since the early 1990s, immigration has replaced net births (births minus deaths) as Canada’s primary driver of population growth. Unlike birth rates, which governments can only indirectly influence, immigration numbers are determined by government policy. For example, Canada’s most recent Immigration Levels Plan aims to add 465,000 new permanent residents in 2023, then 485,000 in 2024, and 500,000 in 2025 – the highest immigration levels ever.

Provincial and local governments, meantime, are tasked with planning for and approving enough housing to keep up with this record population growth. They do so through a series of land-use and growth plans, starting at the provincial or regional level and ending with local plans and bylaws governing how much building is permitted to happen, and where.

In short, the federal government (and, to varying extents, provinces) wield a formidable lever over housing demand, while provinces and municipalities largely control the housing supply. Unfortunately, these two sets of policy levers – immigration policy versus growth planning – are essentially set in isolation of one another.

Immigration levels plans, which are updated every year, are partly informed by a series of federal-provincial/territorial agreements. However, none of the current agreements even mention the word “housing,” focusing instead on concerns such as labour market needs and language requirements. These are important considerations, but newcomers also need places to live.

Meanwhile, provincial and local growth planning takes years to implement and update. For example, the Ontario government updated its 2006 growth plan for the region surrounding Toronto in 2019, and again in 2020, giving municipalities until 2022 to adjust their local plans accordingly. However, municipal plans can take years to translate into updated zoning bylaws, if at all, and since there is no strict enforcement of growth plans’ housing targets, they amount to a best guess as to how communities might grow.

Further, the length of time it takes to create and execute local plans means their population growth assumptions are often outdated before or during their implementation. While immigration levels plans are updated annually, major provincial directives – such as Ontario’s 2022 target of getting 1.5 million homes built over the next decade – are already a step behind.

Federal, provincial and municipal policy makers all need to get on the same page. Canada’s housing shortage won’t end until immigration policies start reflecting the reality of our housing markets, or until land-use and growth planning accurately reflects population growth. Without better co-ordination, the housing crisis will likely get worse.

Steve Lafleur and Josef Filipowicz are policy analysts who research housing and taxation. This article is part of a project they undertook with the Macdonald-Laurier Institute.

Source: Canada’s housing and immigration policies are at odds

ICYMI – Keller: Why the Trudeau government was right to close Roxham Road

Good commentary pointing out the reality of trade-offs and the unreality of “open borders” and permanent residence for all:

If you’ve been dreaming of a guilt-free, morally pure, no-hard-choices solution to the problem of irregular border crossers into Canada, illegal border crossings in the United States, overwhelmed refugee determination systems in both countries and people smuggling in all directions, I offer you this simple answer: open borders.

Under open borders, anyone who wanted to move to Canada could. Simple as that. If 10 million immigrants wanted to come to Canada this year, then 10 million would.

There’d be no more refugee claimants sent back to the United States under the Safe Third Country Agreement. Anyone would be free to enter Canada, work as soon as they arrived, remain as long as they liked and become a citizen. There would be no need for an Immigration and Refugee Board to determine who is or isn’t a genuine legal refugee; there’d be no need for refugee claims at all. We would also get rid of Canada’s immigration points system, which gives priority to people with advanced educations and in-demand skills. We’d admit everyone, and give priority to no one.

There would be no annual immigration targets, such as this year’s target of 465,000 immigrants, including 266,000 economic immigrants, 78,000 spouses and children, 28,500 parents and grandparents and more than 92,000 refugees and compassionate cases. Under open borders, Canada would not select immigrants, and “no one is illegal” would not be a slogan. It would be the law.

While you ponder that, I should make it clear that I don’t think an open border is right for Canada. But unless you do, there’s no way to design an immigration system that doesn’t involve choices – sometimes hard and unpleasant ones – about who gets in and who doesn’t. There’s no avoiding it.

Many Canadians are uncomfortable with the closing of the Roxham Road-sized loophole in the Canada-U.S. Safe Third Country Agreement. I believe the government made the right move, but the discomfort of the critics is not without reason – real people are affected, and not in pleasant ways.

However, unless you go all the way to open borders, every approach to immigration and refugee policy involves at least some people who want to come to Canada being denied entry. It’s inevitable.

The Roxham Road loophole was not a principled response to any of that. A Canadian family hoping to bring in their grandparents still had to apply from overseas and wait in a queue. Ditto regular immigrants from overseas. Same story for refugee claimants from Syria or Afghanistan in a refugee camp.

But if you were from a country where U.S. visa rules are loose enough, and you had enough cash for a plane ticket, you could fly to the United States and then slide into Canada’s refugee-determination system at Roxham Road. Or if you were able to get to Mexico, make it across the U.S. border and then head north, you could similarly jump the queue and make your claim directly on Canadian soil.

But every successful refugee claim at Roxham Road was quietly but effectively reducing the number of spots available to people in refugee camps an ocean away.

What’s more, unless our policy is that everyone who claims asylum gets asylum, we need some sort of legal process to figure out who is a refugee and who isn’t. Canada has such a system and, after detailed investigations that tend to last for years, it finds that many refugee claimants are not refugees, and orders them deported. That’s what happened to one of the families that recently died trying to illegally cross from Canada into the United States though Akwesasne Mohawk territory.

And then there’s the underpinning of our entire immigration strategy. The Trudeau government aims to raise immigration to 500,000 permanent residents a year by 2025 – roughly double the level under the Harper and Chrétien governments. That move was justified in 2016 by the government’s Advisory Council on Economic Growth as a plan for, well, economic growth. A higher population, said the council, would expand the economy, but only if new immigrants are more productive than average Canadians will each slice of pie grow faster than the number of forks. If immigrants are less productive than Canadians, the number of forks will grow faster than the pie.

“An increase in overall economic output (GDP) is a positive thing for Canada,” wrote the council, “but only if the expansion translates to a rise in living standards for the average Canadian (GDP per capita). This goal can be achieved by focusing the recommended increase in immigration flows among educated and highly skilled workers, and those with specialized skill sets lacking in Canada.”

In other words, Canada’s immigration policy is not just about having more Canadians, but more educated, skilled and productive Canadians. To do that, newcomer immigrants have to be mostly young, educated and skilled. One big knock against the Liberal government is that while many new immigrants meet the criteria, too many do not. Immigration can raise everyone’s living standards, but only if we’re selective about who we let in, and who we do not.

To govern is to choose. There’s no getting around it. Nowhere is that more true than at the border.

Source: Why the Trudeau government was right to close Roxham Road

How welcoming are communities to immigrants? Researchers …

Useful initiative but the test will be in the degree to which it is used and how it effects change.

Ironic, to say the least, that the first indicator pertains to housing where the welcome falls flat:

How welcoming are communities across Canada to immigrants and refugees who come here seeking to build new lives? A group of researchers have designed a new tool they say can help measure this, as well as a second tool they hope will help communities identify ways of addressing the obstacles that prevent immigrants from succeeding.

The initiative is being led by Western University professor Victoria Esses, who researches immigration policy. It was launched by Pathways to Prosperity, an alliance of university, community and government partners that works to ease integration into Canadian society for immigrants and minorities.

The measuring tool consists of a list of 19 characteristics, such as housing, employment and anti-racism initiatives – all of which the researchers say are key factors in creating a welcoming community. The tool provides a set of indicators for each characteristic, to help communities measure how welcoming they are.

At a time when Canada is admitting record-high numbers of immigrants, keeping track of these things is crucial, Prof. Esses said. For new arrivals, finding affordable housing, employment, schools, social services and health care can be daunting. When immigrants don’t feel welcome in a community, they often leave.

“If we don’t know how welcoming those communities are, and if they’re not retaining newcomers, then the program bringing in that many people is going to fail,” she said.

Last year, the federal government announced it was increasing its immigration targets for the next three years. It is now aiming to admit almost 1.5 million new permanent residents to Canada by the end of 2025 in order to respond to significant labour shortages and an aging population. The boost is also intended to attract newcomers to rural communities.

Prof. Esses said the measuring tool is particularly important for small- and medium-sized communities, because they historically have not absorbed a great deal of immigrants. Now, many are working to attract and retain them.

In addition to affordable housing, employment and social services, another important thing for communities to address is anti-immigrant discrimination, Prof. Esses said.

She added that it will be important for communities to measure their progress over time, determine how well immigrants are faring and put in place new strategies and structures to address any gaps that are identified. “A really important piece of this is that some of this measurement will be a baseline,” she said.

The second tool – the one for addressing gaps – will include best practices based on evidence, she said. If a community discovers it has gaps, the kit will provide potential solutions.

“I support the government’s program of bringing in many immigrants in the next few years. I think that’s great,” Prof. Esses said. “But I think this piece of welcoming communities is crucial, and I can’t emphasize enough that those two really go hand in hand.”

Source: How welcoming are communities to immigrants? Researchers …

Toolkit Link: Welcoming Communities Toolkit