2010 ALLIES Learning Exchange: Don Drummond - Changing Face of the Canadian Workplace

THE RISING IMPORTANCE OF IMMIGRANTS Don Drummond, Economic Advisor May 6, 2010

TD Economics provides analysis of economic performance and the implications for investors. The analysis covers the globe, with emphasis on Canada, the United States, Europe and Asia. Contact Information Phone: 416 982 8065 Email: td.economics@td.com

LABOUR FORCE GROWTH TO SLOW

PRODUCTIVITY GROWTH IN CANADA HAS BEEN ABYSMAL IN THE LAST HALF DECADE

POTENTIAL GDP IS IN LONG RUN DECLINE

DIRE PREDICTIONS OF SKILLED LABOUR SHORTAGES
NO : demand and supply will adjust
But: takes time and money
Wages will rise
Capital substituted for labour
Production shifted to other markets
Recruitment from non-traditional pools (more training)
Retention of older workers
Better use of under-represented workers
If all else fails, growth will be slower

IMMIGRATION BECOMING INCREASINGLY IMPORTANT IMMIGRATION

CONCENTRATING IN URBAN CENTERS IMMIGRATION

BUT LABOUR MARKET OUTCOMES ARE VERY POOR IMMIGRATION

MORE IMMIGRANTS WORK PART-TIME INVOLUNTARILY IMMIGRATION

…OR ARE HIRED ON A TEMPORARY BASIS IMMIGRATION

AND THE EARNINGS GAP HAS BEEN GROWING IMMIGRATION

EVEN WORSE FOR THOSE WITH UNIVERSITY DEGREES IMMIGRATION

IMPORTANT NON-WAGE BENEFITS ARE LOWER FOR IMMIGRANTS IMMIGRATION

THUS, LOW INCOME RATES AMONG IMMIGRANTS HAVE RISEN IMMIGRATION

LOW INCOME OUTCOMES RISING SHARPLY RELATIVE TO CANADIAN-BORN CITIZENS IMMIGRATION

MANY IMMIGRANTS WELL EDUCATED IMMIGRATION

BUT THEIR SKILLS ARE UNDERUTILIZED IMMIGRATION

ESPECIALLY IN SOME HIGH-VALUE PROFESSIONS IMMIGRATION

LARGELY A FUNCTION OF HOME COUNTRY IMMIGRATION

EARLIER GENERATIONS COULD HOPE TO CLOSE THE GAP, NEW IMMIGRANTS MAY OR MAY NOT IMMIGRATION

IMMIGRANT SOURCE COUNTRIES HAVE CHANGED OVER TIME IMMIGRATION

LANGUAGE APPEARS TO BE A DOMINANT PROBLEM IMMIGRATION

SPECIFICALLY REGARDING ENTRANCE INTO THE WORKFORCE IMMIGRATION

EVIDENT IN THE PRESENCE OF NON-OFFICIAL LANGUAGES IMMIGRATION

LITERACY PLAYS A MAJOR ROLE IN ADAPTING TO THE WORKPLACE IMMIGRATION

… AND IS STRONGLY CORRELATED WITH PERSONAL INCOME IMMIGRATION

INCIDENCE OF LOW INCOME IS HIGHEST AMONG IMMIGRANT CHILDREN IMMIGRATION

CHILDREN OF IMMIGRANTS HAVE HIGH EDUCATIONAL OUTCOMES IMMIGRATION

RECOMMENDATIONS FROM THE AUDITOR GENERAL
The composition of immigration targets within the “Economic Class” should be clearly defined over a multi-year period to ensure the needs of Canada’s labour market are satisfied
In an effort to reduce inventories of Federal Skilled Worker applications, changes were made to the application process without sufficient policy analysis:
How was the list of 38 eligible occupations compiled?
It is not clear that these changes to the eligibility criteria have made a substantive difference in reducing the number of applications.

ECONOMIC IMPLICATIONS
Raising employment & incomes among aboriginals and immigrants is a high priority
Canadian corporations cannot afford to underutilize the nation’s diverse talent pool
Language and literacy programs will be key, specifically for employers
Foreign experience/credential recognition is a necessity

TD Economics
www.td.com/economics
This report is provided by TD Economics for customers of TD Bank Financial Group. It is for information purposes only and may not be appropriate for other purposes. The report does not provide material information about the business and affairs of TD Bank Financial Group and the members of TD Economics are not spokespersons for TD Bank Financial Group with respect to its business and affairs. The information contained in this report has been drawn from sources believed to be reliable, but is not guaranteed to be accurate or complete. The report contains economic analysis and views, including about future economic and financial markets performance. These are based on certain assumptions and other factors, and are subject to inherent risks and uncertainties. The actual outcome may be materially different. The Toronto-Dominion Bank and its affiliates and related entities that comprise TD Bank Financial Group are not liable for any errors or omissions in the information, analysis or views contained in this report, or for any loss or damage suffered.

2010 ALLIES Learning Exchange: Don Drummond - Changing Face of the Canadian Workplace

by Maytree on Jun 11, 2010

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2010 ALLIES Learning Exchange: Don Drummond - Changing Face of the Canadian Workplace — Presentation Transcript