Migration, labor mobility and growth in Canada Essay

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Introduction

Canada has achieved a tremendous growth in its economy because of various factors. Analysts on Canadian economy show that the country has made a significant progress as a result of the influx of immigrants and labor mobility in the country. Besides, the Canadian economy has been boosted because of its open policy which few countries in the world uphold.

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Concisely, the Canadian open policy has encouraged different categories of workers to immigrate into the country. The policy has simplified migration of people because it evaluates their level of skills and competency to grant entry. This policy, and others established by the government have allowed workers to either relocate as permanent workers, temporary foreign worker, TFW or as foreign students.

Also, labor mobility contributed to the country’s economic growth and development. Labor mobility designate privileges which a worker is accorded when exploiting new opportunities in line with his/her profession. It allows a worker to go beyond his/her jurisdiction or whenever the opportunity emerges. Labor mobility has granted workers wider field of searching for jobs besides exposing employers to more workers with different skills and competencies.

The author in this paper explores the contribution of immigrants and labor mobility to the economic development of Canada. In achieving this goal, the author outlines the government involvement in supporting labor mobility through policy frameworks. The author notes that migration and labor mobility has contributed to the economic growth of Canada because they have provided wider economic opportunities both for the worker and employer.

Moreover, the author provides a historical and economic justification of migration and explores the Canadian policies contributing to the large influx of immigrants to the country, and the importance of their immigrations to Canada’s economic growth. In summary, migration and labor mobility has facilitated free movement of people, allowed the nation to fill the void created by low birth rates and supported service industries in accessing qualified foreign workers they need.

Labor Mobility and Canada’s Economic Growth

Devoretz (89) shows that annually, about 200,000 Canadians relocate to different jurisdictions to search for employment opportunities; this aspect, Head and John (48) point out that it has assisted the Canadian economy to grow and expand. Besides, it has contributed to recognition of qualifications across the country, and benefited both the employers and employees (Devoretz 91).

Canadian government encourages labor mobility. It has formulated policies such as the Agreement on Internal Trade, AIT to streamline labor mobility practices.

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Head et al (70) point out that this policy, which was signed in 1994 by the territorial and provincial governments and the government of Canada, allows investment, services and people to move freely across Canada. Head and John (49) note that by embracing this provision, AIT permits any qualified person in any Canadian jurisdiction to access similar opportunities in other parts of the country.

The AIT work towards eliminating barriers associated with mobility shift such as residency requirements, differences in employment standards and practices connected to occupational certification, registration and licensing (Head and John, 50).

Labor mobility and the Labor Canadian Labor Markets

AIT has played a key role in Canadian labor market. It has partnered with other professionals and government agencies, which help regulate hundreds of trade and occupations across the country (Head and John 52). The government agencies and professional groups work on a common consensus in regard to the qualifications required to ensure their wider recognition.

Head and John (50) indicate that Canada has over 60 regulated professions, and among them 51 have been synchronized in two or more territories and provinces. Some of the regulated occupations include teaching, architecture, nursing and doctors. Consequently, Devoretz (67) cite that other trades such as plumbing, automobile mechanics and electrical are also regulated through licensing.

Also, other policies such as Forum of Labor Market Ministers support inter-jurisdictional cooperation and consultation on labor markets (Coulombe and Frank 92). This policy is important in supporting inter-jurisdiction understanding on matters such as labor market and forums for achieving mobility goals. Similarly, it has promoted the mobility of highly skilled workers with mobile qualifications.

Devoretz (60) asserts that the Forum of Labor Market Ministers has developed and expanded inter-jurisdictional standards. These standards have increased the quality of labor in Canada. Also, FLMM has aligned the Canadians work requirements with economic structures, and provided the inter-jurisdictional association in order to facilitate participatory structures through labor force development boards.

The impact of labor mobility to the Canadian economy has been significant. Devoretz (63) cites increase in labor demand for the production goods and services and reduction of administrative barriers in people as the contribution of FLMM. These developments have increased the capacity of organizations to meet labor requirements, and workers to find employment opportunities across the borders.

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Migration and Canadian Labor Markets

Canada is a country with higher rate of immigration in the world. It is among the countries in the western world that promote widespread immigration. In response to global migrations, the Canadian government has devised immigration policies, which favor its economic growth and expansion (Head et al 69).

These policies have enabled the country access the appropriate number of immigrant workers with the right skills. Similarly, the country has developed more strategic and responsive immigration structures that support fast tracking of people with the skills needed by employers and aggressively marketing Canada globally. This is done with an aim of making people view Canada as a place of skilled immigrants.

Strategic responses have been sought through sustaining structural and institutional reforms. Reforms in these areas have ignited migration of skilled workers in the country. Head et al (67) denote substantial reform which the government as Temporary foreign Worker, TFW, and valuing international students among others as the key elements promoting Canadian economic growth.

In regard to TFW, the Canadian immigration policy knows that a person having sufficient skills is vital for Canadian businesses to compete and succeed globally. Thus, this aspect has made Canadian employers to look for foreign workers across the borders to achieve this goal.

Similarly, the Canadian government values international students. Foreign students undertaking their studies in Canadian institutions of higher learning develop ties with the Canadian labor market through working off- campus. Once they complete their studies, they are allowed to look for work in Canadian companies. Coulombe and Frank (92) cite that international students inject over $ 6.5 billion in the Canadian economy annually.

Migration and its potential to Canadian Economy

Migration and labor mobility is marked by distinctive features in terms of gender and culture, skill set and geographical ties. It can be both temporal and permanent. Head et al (74) shows that immigration influences an economy in a number of ways, which can be either, be positive or negative.

This is because the high influx of immigrants increases labor supply, which tends to reduce domestic pay and wages among domestic workers. Thus, the scale of the impact on employment depends in the resilience of the domestic market. If domestic wages are vibrant, then, the impact on employment may be significant. However, if the domestic wages are elastic, then, the impact on employment is likely to be smaller (Coulombe and Frank, 90). Thus, Canadian has attracted immigrants because of its elasticity in domestic wage.

Consequently, the Canadian government does not tolerate the economic peril of population turn down. In this regard, various organizations such as the DRI-McGraw Hill have supported the country’s immigration policy. Though they consider the country’s policies reduces immigration levels, and contributes to short-term costs, in the long run, they view immigration has an essential tool for boosting economic output and employment in the country.

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Similarly, the Economic Council of Canada notes that immigration in the country should be encouraged and supported. In one of its findings, it indicated that the immigrants contributed significantly to the economic development of the country. Similarly, the Royal Bank of Canada in 1995 reported that the Canadian government should strengthen the country’s immigration rate from 30 percent rate to 400,000 per year (Coulombe and 92). This is in order to promote the county’s per Capita income and sustain economic growth.

Personal Perspective

I reckon that immigration and labor mobility is instrumental in reshaping Canada’s economy. Labor mobility helps reduce immigration which results in a number of economic benefits to a host country.

One such benefit a country accrues from these practices is the increase in labor supply. I concur with Coulombe and Frank (88) that a country experience labor increase because labor mobility allows more workers to enter the country’s economy; this increases the overall labor supply. The increase accompanied by a fixed labor market lead to decrease in wage rates.

Also, labor mobility influences a worker in various ways. First, it provides the worker with a prospect of improving his/her financial situation. This happens when a worker is allowed to move freely or train for a new job. If this happens, a worker feels happy and transmits the same in enhancing productivity. Secondly, labor mobility is a driver for the general economic growth of a country. This is in terms of how the economy embraces technology and competitive advantage.

Besides, the restrictions confined to workers in regard on how they move around, either occupationally or geographically inhibit growth by making it more challenging for industries to hire the right workers.

Conclusion

Migration and labor mobility is essential for any economy in the world. It allows people to search for employment opportunities and lead a better life. Consequently, when governments place fewer restrictions on where people move and what occupations are fit for them, they find it easy to apply for any occupation in which they have the right skill and interest.

Also, businesses gain productivity and improve the welfare of its employees through aspects such as training, motivation and welfare programs among others. Through such practices, a country is assured of economic growth besides promoting the welfare of its citizens.

Works Cited

Coulombe, Serge, Frank Lee. “Convergence across Canadian Provinces, 1961 to 1991″Canadian. Journal-of-Economics; 28(4a) (1995): 80- 98.

Devoretz, Don. Canadian Human Capital Transfers: The United States and Beyond, Toronto: Howe Institute, 1998. Print

Head, Keith; John Ries and Don Wagner. Immigrants and the Trade of Province, RIIM Working Paper 98-21, Vancouver, 1998.

Head, Keith and John Ries, Immigration and Trade Creation: Econometric Evidence from Canada, Canadian Journal of Economics (1998): 47-62. Print

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IvyPanda. (2019) 'Migration, labor mobility and growth in Canada'. 23 September.

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IvyPanda. 2019. "Migration, labor mobility and growth in Canada." September 23, 2019. https://ivypanda.com/essays/migration-labor-mobility-and-growth-in-canada/.

1. IvyPanda. "Migration, labor mobility and growth in Canada." September 23, 2019. https://ivypanda.com/essays/migration-labor-mobility-and-growth-in-canada/.


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