Fall Economic Statement: Immigration key to Canada’s economic recovery

Kareem El-Assal
Published: November 30, 2020

On November 30, Canada's finance minister Chrystia Freeland unveiled an update on how the Canadian government will continue to support the economy amid the coronavirus pandemic.

Each fall, Canada's finance minister provides an overview of the country's economic and fiscal situation. The 2020 version of this update is of added importance in light of COVID-19.

Following a huge decline in economic activity and jobs at the start of the pandemic, Canada began to enjoy a recovery over the summer months. However, coronavirus case levels have spiked at a concerning rate in recent months, resulting in a fresh round of lockdowns in certain parts of the country, such as in Toronto.

Earlier this year, Canada's finance department said the country would run a deficit of over $340 billion to support the economy during the coronavirus pandemic. In today's update, the department revised this figure to over $381 billion.

Canada has rolled out a variety of exceptional measures throughout 2020 to support the economy and jobs as it seeks to mitigate the damage caused by the pandemic. Such measures include the Canada Emergency Response Benefit (CERB), which was income assistance to workers affected by COVID-19, as well as measures such as rent and wage assistance to employers.

Get a free Canadian immigration assessment

Today's Fall Economic Statement notes that COVID-19 has significantly reduced permanent and temporary resident arrivals to Canada. It projects that Canada's population growth will fall to around 1 per cent this year compared with 1.4 per cent in each of 2018 and 2019. Weaker immigration levels is hurting Canada's labour force and economic growth.

To underscore the importance of immigration to Canada's economy, the Statement observes that immigration supported half of the average of the country's real GDP growth between 2016 and 2019.

Canada is already preparing its post-COVID-19 immigration plans so that it can utilize the skills and talents of newcomers after the pandemic to support a recovery in economic growth and jobs.

In late-October, Canada's immigration minister Marco Mendicino tabled the most ambitious immigration plan in Canadian history. Under the 2021-2023 Immigration Levels Plan, Canada will aim to welcome over 400,000 new permanent residents each year.

Today's Statement points out that the federal government will provide Immigration, Refugees and Citizenship Canada (IRCC) with $72 million to modernize its Global Case Management System into a digital platform and away from the "current cumbersome paper-based system."

The purpose of this investment is to "contribute to Canada's world-class immigration system through enhanced client service, operational efficiency and program integrity, ensuring a higher level of service and internal capacity to bring the skills and talents of new Canadians to our communities."

Overall, the Statement outlines that the Canadian government will commit a total of $750 million between 2021 and 2026 to supporting higher immigration levels.

Another big part of Canada's Immigration Levels Plan entails increasing the number of skilled workers welcomed under Express Entry. In recent weeks, IRCC has held its largest Express Entry draws ever, issuing 5,000 permanent residence invitations in each draw. IRCC may hold an Express Entry draw for the third consecutive week in the coming days.

Express Entry is among five major Canadian immigration stories to watch to conclude 2020.

Get a free Canadian immigration assessment

© 2020 CIC News All Rights Reserved

Share this article
Share your voice
Did you find this article helpful?
Thank you for your feedback.
Subscribe to our newsletter
Did you find this article helpful?
Please provide a response
Thank you for your helpful feedback
Please contact us if you would like to share additional feedback, have a question, or would like Canadian immigration assistance.
  • Do you need Canadian immigration assistance? Contact the Contact Cohen Immigration Law firm by completing our form
  • Send us your feedback or your non-legal assistance questions by emailing us at media@canadavisa.com
Related articles
IRCC’s application backlog shows steady increase over the summer
A picture of a sign saying "welcome to Canada"
Express Entry: 1,613 candidates invited in draw for PNP candidates
Rural road with fall foliage
October 2024: State of the Express Entry pool
A group of people walking through a popular square in Canada.
Ontario increases minimum wage. Is it enough to live on as a newcomer?
Queens park in the fall, Toronto
Top Stories
IRCC’s application backlog shows steady increase over the summer
New Brunswick Critical Worker Pilot: Who are the employers and what positions do they hire for?
Express Entry: 1,613 candidates invited in draw for PNP candidates
Join our free newsletter. Get Canada's top immigration stories delivered to your inbox.
Subscribe
More in Express Entry
Express Entry: 1,613 candidates invited in draw for PNP candidates
Rural road with fall foliage
October 2024: State of the Express Entry pool
A group of people walking through a popular square in Canada.
How many ITAs has Canada issued through Express Entry this year vs. last year?
A view of a mountain through fall leaves.
IRCC issues 4,000 ITAs to Canadian Experience Class candidates in latest Express Entry draw
A view of a river in Canada during a summer day, with kayaks and canoes making their way through.
Link copied to clipboard