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December 15, 2021

How Canadian Government can tackle Labor Market Outcomes

Canada’s immigration system is designed to fill labor shortages, and yet the current system is not keeping up with the demand for essential workers.

One of the reasons is that Canada has a number of immigration pathways for workers in “skilled occupations,” which do not always include jobs that are in-demand. Also, the process for regulated industries, such as nursing, result in fewer qualified workers being able to work in the field that they trained for.Overqualification is also a problem for both immigrants working in essential jobs, and employers.

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Let us look at the summary of some recommendations on how to fix the gaps in essential sectors, and improve outcomes for immigrants.

  • To mitigate overqualification in essential occupations, the study suggests that there should be more pathways to permanent residence for essential workers. Canada should give out more points in the Express Entry system for essential work and secondis to launch an initiatives like the one-time Temporary Residence to Permanent Residence (TR to PR) pathway as previously launchedin the middle of the pandemic
https://youtu.be/vV2jjRaTx2Y
How Canadian Government can tackle Labor Market Outcomes
  • Essential workers often work in more labor-intensive jobs, but the high pay goes to people in high-skilled occupations. To address this, the government need to collaborate with employers and make essential work more attractive with better compensation and benefits.
  • Credential recognition is a long-standing challenge for newcomers, and it is one of the main drivers of overqualification. The credential recognition process is complex, lengthy, and costly. It prevents immigrants from working in jobs they might be otherwise qualified for, such as the qualified nurse who is working as a nurse’s aide.The government needs a coordinated response to this intricate web of challenges that requires close collaboration with employers, regulators, and other relevant bodies.
  • Policymakers need to expand career advancement and mobility pathways in essential jobs. As it is, many essential jobs offer no possibility of career advancement, and it is difficult to switch to other sectors to pursue better employment opportunities, especially for those with visa restrictions, or who work in regulated occupations. This fact also discourages domestic workers from pursuing these careers.

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