Should Canada limit immigration during a recession?

By Jason Buckland, Sympatico / MSN Finance

There’s a hotly-contested issue surrounding this recession that hasn’t seemed to draw much media attention, subsequently gliding a bit under the social radar.

And it’s a two-pronged matter, really: what impact is immigration having on the struggling Canadian economy, and – because of the downturn – should the federal government now tighten the valve that lets those from foreign countries inside the border?

The matter appears to have divided Canadians into two fairly radicalized groupings. One thinks we need to focus on helping native Canucks find work instead of giving a fresh group of immigrants a crack at those jobs. The other suggests new immigrants can help boost the economy by offering more federal tax revenue to work with.

Let’s take a look at the defence for both cases:

Against Recession-Time Immigration

According to the Toronto Star, data implies many who came to Canada during the recession of the early 1990s, when PM Brian Mulroney left immigration levels untouched, had trouble finding work and “never recovered from chronic unemployment and underemployment.” In 1993, the same year 256,703 people arrived from all over the world, Canada’s unemployment rate shot to 11.4%, the highest level in decades. If we don’t drastically reduce the number of immigrants arriving in 2009 while the economy wheezes, they will only strain Canada’s resources and flood unemployment lines and welfare services. Not only that, but immigrants unable to find work are more likely to take jobs from Canadians for lower pay, driving down long-term labour wages as a result.

For Recession-Time Immigration

The belief here, the Star details, is that immigration is always a benefit simply by virtue of population growth. Consider a case study of Markham, Ont., one of Toronto’s ever-growing metropolis boroughs: mainly based on the entry of immigrants, the town’s population grew 80% – from 145,000 in 1991 to 261,600 in 2006 – in just 15 years. That rise has led to “rapid residential and commercial development … (and is) attracting big corporations such as IBM and soon-to-come Honda Canada.” Immigrants, by cultural practice, are also more inclined to become home-owners that will support the crumbling housing market by consistently paying down their mortgage. More focus should be put on preventing talented workers from bolting Canada for opportunities abroad than preventing immigrants from coming into our country – especially if they could now be required to master one of the nation’s languages before they can enter.

Whatever avenue Stephen Harper’s government decides to pursue on immigration policy, this isn’t a problem limited to Canada. Barack Obama’s administration is facing a similar controversy in the U.S., having an even tougher time addressing the issue because of the massive to-do list currently facing Congress.

Related posts:

1. In Canada: Recession will be painful, but short
2. Canada will avoid recession
3. Canada's Immigration Policy Hurting Newcomers and Economy
4. Controversial immigration reforms – getting more difficult to immigrate
5. Recession slowed immigration: OECD