Canada is known as one of the most developed countries globally and is a popular choice among international students. However, the country is presently dealing with a discussion about difficulties related to housing and employment. People are questioning whether the high number of immigrants is a contributing factor, or if there are other reasons behind these issues.
This article will explore the reasons of Canada’s housing and employment problem and look at a number of potential contributing variables. Furthermore, our objective is to offer a thorough comprehension and valuable perspectives on the continuous discussion surrounding these difficulties.
The Ongoing Debate: Canada’s Housing and Job Challenges
Alright, Let’s get started! Canada is usually seen as one of the most developed countries in the world. But right now, it’s going through some tough times – just like any other country does. Challenges are part of life for every nation. So, why is Canada getting a lot of attention in 2023? We’re going to explore what’s going on and why people are talking about it this year.
Challenges in the Canadian Job Market
In Canada, the job market has been influenced by various factors. From challenges posed by COVID-19 to a high number of immigrants, it is necessary to understand these influences when navigating job challenges.
The Impact of COVID-19 on Canada’s Job Market
Canada’s job market, which was booming before the pandemic, suffered after COVID-19 struck. Everything was going well before COVID, but the virus created a global recession that hit several countries, including Canada. Countries were forced to close businesses in order to contain the COVID-19 outbreak, which resulted in a large loss of jobs and a shift to remote labor.
Comparing the employment rate to its pre-pandemic peak, it fell to historically low levels. From 2009 to 2019, Canada experienced a consistent decrease in unemployment, reaching an all-time low of 5.7% in 2019. Just before the pandemic in 2020, the unemployment rate was at 5.5%.
While Canada managed to recover some jobs as businesses reopened, the government also took a number of other steps to boost the labour market. Despite these efforts, the job market is still in the process of improvement to restore its previous level of strength following the pandemic’s distractions.
The Impact of High Immigration on Canada’s Job Market
The second and primary reason of the current scenario is a rapid increase in immigration, which has created a significant problem for Canada’s job market. Due to its reputable educational system and welcoming culture, the nation has become more attractive to international students throughout time, drawing people from all over the world. More and more international students are choosing Canada to study and are staying to work there with permission.
As the labor market attempts to recover after COVID-19, the arrival of lots of immigrants has made things more difficult and worsened the problems.
Looking at the numbers from the past ten years makes it clearer. In 2014, Canada let in 258,400 immigrants. Now, in 2023 the number is around 9,00,ooo. Can you imagine? It’s like tripling in a decade.
The impact of a large number of international students is particularly noticeable in Ontario. Every year, the majority of students in Canada choose Ontario as their destination, which makes it extremely difficult for recent immigrants to find a work. In December 2023, employment in Ontario declined by approximately 44,000 (-0.6%), affecting both full-time and part-time positions.
But but but…. don’t lose hope. The positive update for 2023 is that there was only a small difference in employment in October, with an increase of 18,000 jobs (0.1%). This follows a rise of 64,000 jobs (0.3%) in September and 40,000 jobs (0.2%) in August. However, the unemployment rate went up by 0.2 percentage points, reaching 5.7% in October. This is the fourth increase in the last six months of 2023.
In October, jobs increased in Alberta, Saskatchewan, Nova Scotia, and New Brunswick, but declined in Quebec.
Another positive updates for both locals and immigrants in 2024 are:
-The important news everyone was waiting for is that Canada is now aiming to stabilize growth and reduce the number of new international student permits to around 360,000 for 2024. This is a significant relief for the job market.
-A survey commissioned by Express Employment Professionals reveals that almost half of Canadian companies are planning to hire more people in the first half of 2024.
Challenges in Canadian Housing Prices
Let’s now explore one of the most talked-about topics in Canada, both among citizens and in the parliament: the housing crisis, prices that are rising, and interest rates.
Due to the factors discussed that have impacted the job market in Canada, in 2023, approximately 33% of Canadians (source) aged 15 and older were living in households that found it challenging or very challenging to meet their financial needs, including transportation, housing, food, clothing, and other essential expenses.
In 2023, if you were living in a rented home, it was more common to have money difficulties than if you lived in a home owned by someone in your family, whether they had a mortgage or not.
High mortgage rates continued to have an impact on the new home market. According to the Canada Mortgage and Housing Corporation, the number of unsold single-family residences (such as row houses, detached, and semi-detached houses ) in the nation increased by 48.5% in October of 2022 (source).
At the beginning of 2022, the five-year mortgage rate increased by approximately 250 basis points to 5.8%, the highest since December 2008. (source)
Renting is becoming more popular in Ontario and across Canada as instead of buying a property. Renters account for almost 25% of the population in Ontario and nearly half of all households in Toronto.
The primary reason for this growth is that more young people are opting to rent, mainly as a result of a large number of overseas students. Incomes for renters are often lower than those of home owners. All tiers of government should concentrate on lowering housing costs as rental costs continue to rise, particularly for those with lower incomes.
All over Ontario, rents have increased during the past 20 years, but particularly after 2011.
Over half (55%) of employers mentioned that their workers requested a salary increase in the last year due to the rising expenses of daily life.
In Canadian politics, housing affordability has been a major problem, with the Conservatives blaming the Liberals for having high mortgage and rent costs. The Conservative leader accused Trudeau and the federal NDP of creating a “housing hell.”
Now, let’s see the positive news on housing…..
“We’re working on a plan that will bring together the measures we’ve already announced and the new ones we plan to announce. This will give Canadians a clear view of our complete renewed approach,” Fraser said in an interview with The Canadian Press.
It appears that rates will soon return to their previous lower levels following an 18-month campaign by the Bank of Canada that saw the nation’s main rate rise to a two-decade high of five percent.
However, it was all in the past, and the government is still addressing the problem. In 2024, Canada is planning to reduce the numbers of international students due to housing shortages, which will impact the housing shortage and rent prices. The government has also allocated quotas of visas to states and plans to follow a strict plan from now on to avoid facing the same challenges in the future.
The plan will expand on the housing policies recently announced by the Liberals. It’s expected that there will be more home sales in the first quarter of 2024. This is because borrowing rates are expected to decrease, the job market is strong, and there’s a release of accumulated demand.
By Way of Conclusion
There have been both scary and positive aspects to navigating Canada’s complex housing and job market. As we reflect on these issues, let’s remain positive that effective solutions will be found, opening the door to a brighter future for the people in Canada.
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