Economic Gridlock on the Path to Population Growth
Atlantic Canada’s economy is looking to recover and grow but is meeting roadblocks because Canada’s immigration system is currently overwhelmed. The backlog of applications has now eclipsed 2.4 million and is expected to continue to increase with more than 250,000 pouring in last month alone. All while our unemployment rate has fallen to 5.2% in a labour market that continues to tighten. An increased level of immigration and a low jobless rate are usually good news and signs of an economy which is growing and ready to take off. However, with the long processing times and backlogs we are seeing throughout the country, it has created a recipe for economic gridlock.
Businesses are unable to find the talent they need domestically and do not have reliable access to workers that are hoping to arrive internationally. Immigration, Refugees, and Citizenship Canada (IRCC) has been tasked with welcoming a record breaking 1.2 million permanent residents over a three-year span while maintaining current programs and creating new programs to assist refugees. They simply do not have the resources to process the increased volume of applications.
Business investment is also taking a hit. Last week, visa backlogs were cited as a primary reason for many delegates missing the Collision 2022 tech conference in Toronto which prompted entrepreneurs at the conference to state that they would be taking their business to other jurisdictions. They’re not alone in this. Businesses cannot grow or reliably invest in jurisdictions where they cannot find the talent that they need—a critical component to Atlantic Canada’s future economic prosperity.
Canada’s immigration system is overcomplicated by regulations, and government has set targets that the public service does not have the resources to meet. It is frustrating for employers and the applicants that are looking to arrive here to begin the next chapter of their lives. It may be time for an overhaul of our immigration system that focuses on both efficiency and simplicity. Canada’s goals to grow our population and support our workforce and businesses are commendable, but the combination of regulatory burden and lack of resources are too much to overcome. Taking steps to remove bureaucratic red tape to allow employers to have access to the workers they need will be essential to pandemic recovery and economic growth for Atlantic Canada.
On the path to population growth, now is the time for government to address the massive backlog and allocate the appropriate resources to ensure an efficient system that meets the needs of immigrants and the businesses wishing to employ them. Government has shown that during times of crisis that it cut through bureaucratic entanglements to make programs work and for an economy ready to recover from two years of lockdowns and uncertainty, it should show that political will once again.
Brandon Ellis is the senior policy manager at the Atlantic Chamber of Commerce, a nationally accredited business association representing the network of 90 chambers, 34 corporate partners, and more than 16,000 businesses in Atlantic Canada.