Canada Needs High Level of Immigration to Tackle Labor Shortage

Posted by Visa Experts on November 22nd, 2022

According to a new study by Statistics Canada, Canada’s economy and labor market is highly dependent on skilled immigrants. The study has revealed that modest and sustained levels of immigration will not be enough to tackle long-term labor needs in Canada as the country deals with the aging population. Thousands of foreign workers annually migrate to Canada using various immigration streams. The Express Entry is the most popular pathway that uses the Canada immigration points calculator system to select eligible applicants for Canadian immigration.

Key highlights of the study

  • Canada’s labor market needs more workers as economic activities resume post-pandemic

 Employment rates among core-aged men and women (25 to 54 years) are above their pre-pandemic baselines. The youth   employment rate in the country has fully recovered.

 The national unemployment rate fell to a record low of 5.2% in April. Among core-aged workers, the rate was 4.3%.

 More recent core-aged immigrants are working now than before the pandemic.

  • Every four businesses out of ten reported labor shortages at the beginning of 2022, while some experienced challenges in recruiting skilled employees.
  • Canada needs high levels of immigration over the next few years to address labor market imbalances.
  • Modest, sustained increases in immigration levels will not fully offset the longer-term impacts of an aging population but are critical for alleviating the effects of aging on the labor market over time.

Canada has record-high job vacancies


According to Statistics Canada, currently, Canada has a record high level of job vacancies of 957 500, an increase of 2.7% from the last quarter. Healthcare, social assistance, and construction sectors have the highest job vacancy rate. The number of vacancies in health care and social service increased by 5% from the last quarter. The shortage of workers in the health care industry has intensified by the Covid-19 pandemic.

On the other hand, job vacancies continue to rise in the construction sector, with 81 500 positions waiting to be filled.

Moreover, manufacturing and retail trade sectors also experience high vacancies, with 87 400 in manufacturing and 114 600 in the retail industry.

With so many job vacancies, we urge Canadian immigration hopefuls to find out their Canada PR points and become part of Canada’s growing economy.

Immigrants are an Important Source of Labor Supply

As Canada continue to face severe labor shortage, many businesses and employers struggle to find qualified applicants to fill the job position. To tackle this issue, leading Canadian employers have urged the government to invite more skilled immigrants to fill these jobs.

Recently, Canada’s immigration minister also announced a range of measures to ensure Canada can recruit and retain skilled workers needed to boost the economy. Extending the post-graduation work permits and restarting express entry draws are part of these measures.

In February 2022, the government also increased immigration targets to help Canada’s growing economy.

The survey findings highlighted the need for more immigrants in the Canadian economy. Immigrants are critical to sustaining the economic development initiatives in Canada and keeping it strong.

Let us help you under the Canada PR point system. Call us today at 8595338595 or drop a mail at for a free evaluation of your profile and learn about your visa options.

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Joined: March 7th, 2019
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