*NEW* Canada's GDP grew by 1.1% between the 4th quarter of 2022 and 2023, while its population grew by 3.2%. That means GDP per capita is now falling at 2% annually (roughly the difference). Zero economic growth in more than 6 years.
If Canada’s foreign student program is about attracting and retaining the world’s “top talent,” why is there a moratorium on admissions of foreign PhD students in my faculty while admissions at strip-mall career colleges in my province are surging?
*NEW* Canada's non-permanent resident population now exceeds 2.5 million. We have a runaway train. The federal government has lost control of the system. Hard truth.
*NEW* Canada's GDP per capita was higher in the 2nd quarter of 2018 than it was in the 2nd quarter of 2023. Five years with no economic growth. Stunning. Absolutely stunning.
*NEW* Update of provincial excess mortality estimates. Interesting to think about how the differences here line up with public opinion on how well provincial governments have managed the COVID-19 pandemic.
I moved to 🇨🇦 when I was 7. Within the first year I learned to speak English, had pals born in Jamaica and India, and was playing hockey. When I was 30 I got a PhD and at 45 I got 6 months of chemotherapy and radiation, which saved my life. And both were free! I ♥️ this country.
The Foreign Student Program has shifted its objective from attracting and retaining top talent that boosts the population's average human capital to maximizing tuition revenues of postsecondary institutions, commissions of student recruiters, and low-wage labour for businesses.
Another way to look at the international student visa data. Here's the 100 schools that received the most int'l student visas from Jan 2022 - Apr 2023, with U15 universities highlighted in blue.
Big shoutout to
@mikalskuterud
who gave me a much cleaner version of the data file.
In December 2017 I was diagnosed w/ stage4 non-Hodgkin's. Within 36 hours I was admitted to
@pmcancercentre
to begin 6-month chemotherapy/radiation regimen. Treatments saved my life but wrecked my immune system. Got first vaccine dose today. Feeling grateful for modern science.🙏
I vividly remember visiting Buffalo in the 1980s and thinking “my god, this place is poor.” I was in Buffalo 4 weeks ago and in Winnipeg 2 weeks ago. I had the exact same thought in one of those places, and it wasn’t in Buffalo.
The fact that "labour shortages" continue to dominate Canada's economic narrative tells you everything you need to know about corporate Canada's political power in this country.
Conestoga College’s foreign students are paying for: 1) work rights, 2) PR status, 3) education.
End off-campus work rights during studies + return to single PR pathway through CRS, and see what happens to Conestoga’s foreign applications.
(source: )
Is the CERB disincentivizing work? From what I'm seeing, and I've been looking hard, the answer's a strong "no". While job search was exceptionally low in March-May, the share of jobless workers seeking new jobs has now reached levels comparable to what we saw in 2008/09 crisis.
It's time that someone ask
@R_Boissonnault
about these data.
Here's the % of Labour Market Impact Assessment (LMIA) applications for temporary foreign workers that have been approved under the Liberals' watch.
1/4
Here are the addresses of some McDonald's restaurants that have received LMIA approvals since 2021. Can someone explain to me why there aren't domestic workers in these communities who could fill these jobs?
"When it comes to certain types of jobs, there’s just not a domestic population here at home that can fill them."
Our SVP Matthew Holmes joins the "It's Political" podcast w/
@althiaraj
to talk about the role of temporary foreign workers in 🇨🇦's economy.
Statcan report released today suggests 19% of *all* study permit holders in 2019 were *not* enrolled in any postsecondary schooling.
The line between Canada's International Student and Temporary Foreign Worker Programs is fuzzier than you think.
👉
Canada struggles to attract young people into the skilled trades b/c they understand it doesn't pay well. How flooding these labour markets with temporary foreign workers is a progressive solution is beyond me. The mind boggles.
As we say wow! Imagine if the price of admission was to enter the building trades…and then leverage this new work force to build housing? Instead of looking for blame, how about we focus on building a solution to the housing crisis? And as always start by ending homelessness.
If you care about Canada's historic and exceptional national consensus on immigration, this should worry you, a lot. The stony silence of Ottawa's opposition benches and Canada's labour leaders is deafening.
*NEW* Canada's non-permanent resident population now exceeds 2.5 million. We have a runaway train. The federal government has lost control of the system. Hard truth.
The strategy of positioning immigration as a binary policy choice is unambiguously to pigeonhole critics of the government as anti-immigration. This does absolutely *nothing* to get us closer to solutions but only enflames the politics. Troubling.
MASSIVE thank you to the world's cancer researchers. You're my heroes. Five years ago today, I finished 6 months of chemo/radiation therapy to treat stage-4 non-Hodgkin's lymphoma. Grateful for every bonus day.
#FuckCancer
Is the CERB disincentivizing work? 310K Canadian workers began new jobs between mid-June and mid-July this year. 42% of these jobs paid below $2000, which is *identical* to the equivalent number in summer 2019 and only 1 percentage point lower than in summer 2018.
#cdnecon
“Although implementing a cap on international students may seem to provide temporary relief, it could have adverse effects on our communities, including exacerbating current labour shortages.”
Wait! It’s a de facto temporary foreign worker program?
If you don't think runaway foreign student admissions in Canadian colleges is the consequence of fed policies, you've got your head in the sand.
Combined with waiving off-campus work hours, this has a huge impact on demand for study visas.
(source: )
Women with preschool-age children have experienced the biggest losses in total working hours as the result of the COVID-19 lock-down. Critical to address childcare when we begin to turn the corner.
#cdnecon
Falsely positioning critics of LPC immigration policies as "blaming immigrants" or wanting to "stop immigration" has a singular objective - to pigeonhole, divide, and make an economic issue a cultural war. That's dangerous. Very dangerous. I'll call it out every time.
Square footage of housing per person in 🇨🇦 is higher than it’s ever been, yet we’re in a “housing crisis.” Maybe the problem isn’t a shortage of housing. Maybe the main problem is a *highly* unequal distribution.
Tony's right -- explosion in Canada's non-permanent resident population wasn't part of its grand plan. Liberals' expansion of PR pathways for lower skilled migrants is *the* ultimate cause of the current dysfunction. 1/
*NEW* Took some work to construct this, but this is a huge Canada-US difference that I'm not seeing any attention to. 🇺🇸 rate remains stuck more than 1 percentage point below its pre-pandemic rate while 🇨🇦 rate has now more than fully recovered.
The doctor's claim here is alarming, to say the least. Anyone able to reconcile her "through the roof" claim with PHO's data? May I suggest we all have a responsibility to be *absolutely* clear about what exactly we're measuring when influencing public fears.
Dan, academic economists who’ve been studying 🇨🇦immigration for decades have concerns based on evidence. Their blame isn’t directed at immigrants, who are likely the folks feeling the brunt of growing pains; it’s directed at naive government policy. Happy to share a reading list.
The silence of Canada's labour movement on the expansion of the low-wage stream of Canada's Temporary Foreign Worker Program is deafening.
What explains it? Simple. The low-skill workers who are adversely affected are no longer who Canada's unions represent.
Hey progressives! Labour shortages are NOT a problem. Real wages of workers in this country are falling fast. You're being hoodwinked. Time to wake up!
Your regular reminder that real wages in Canada's low-skill jobs are *falling* at the same time as we're told labour shortages are what's holding Canada's economy back.
*THREAD 🧵* If your inclination in hearing about Canada's "labour shortage crisis" is to ask "where did all the workers go?" you've got the wrong economic model in your head. Canada’s labour force is, in fact, now bigger than it’s ever been! 1/
“The only way to feel confident about future living standards is to avoid looking at the data.”
(I don’t know David or Jock, but if anyone does, please let them know they knocked it out the park with this one.)
Tying international students to the housing crisis is reckless. Feelings of economic uncertainty alongside xenophobic sentiments can become explosive, and very difficult to walk back. Wish governments and journalists would be more careful.
What problem's this policy solving? If these places have genuine labour shortages, why aren't good wages enough to attract immigrants? And if they're sufficiently unattractive to make good wages ineffective, why do we think new immigrants will stay?
Canadian policymakers stand to learn much from Australia's 2010 experience in stemming an explosion in foreign student visas in its college sector. How'd they do it? Sector-wide cap? No. Solution was shutting down PR pathways for lower skilled migrants.
In May 2014,
@JustinTrudeau
argued that "the Temporary Foreign Worker Program needs to be scaled back dramatically over time" because it "drives down wages and displaces Canadian workers." 1/5
"These students do not travel thousands of kilometres to study hotel management at a small college for the academic thrill. They make the journey for the chance of getting permanent residency."
"Surging immigration isn’t a cause of the housing crisis, but a result of it. And if the number of immigrants coming to the West falls, it will take economies down with it." Excellent commentary on the dynamic between housing, immigration and the economy:
Need an example of how Corporate Canada is coddled thereby undermining productivity and growth rates in per capita GDP? Look no further than the low-wage stream of the Temporary Foreign Worker Program. cc:
@jthorpe11
The next time someone asks you what went wrong with Canada's immigration system, point them to Keller's column in today's Globe. And when they ask you how it can be fixed, point them to the same place. 👇
A decade ago I watched governments and postsecondary institutions depart on the foreign student train to riches. Soon joining them were student recruiters, landlords, immigration consultants, and banks. The train's now crashed and everyone's pointing fingers at who's to blame. 1/
“We usually see maybe 200 or 300 people but today we're all surprised to see this high number. Everyone is looking for a job.”
Canada’s runaway foreign student program has become its guest worker program.
Two facts:
1) Unionized government employees in 🇨🇦 earn average higher wages than non-unionized private sector employees of similar age, education, and job tenure.
2) Their wage advantage has been dwindling since 2010, and especially since 2020.
Want to know what happens to the price in a competitive market when there's a genuine shortage?
Look to Canada's housing markets, not its low-skill labour markets.
How "labour shortages" continue to be seen as a first-order economic problem in this country is stupefying.
It became apparent when
@SeanFraserMP
was Immigration Minister that one of two things must be true. 1) He genuinely doesn’t understand how markets work; or 2) he’s betting that many Canadians don’t understand. Unsure which one troubles me more.
I think the new housing minister,
@SeanFraserMP
, is officially a bust with this new talking point that the federal government has no desire to reduce the price of housing.
Organized labour and LPC were up in arms when the Harper government allowed the Temporary Foreign Worker Program to grow to record levels in 2014.
That growth pales in comparison to what we're seeing now and *nobody* is ringing alarm bells.
Why?
4/4
In May 2014,
@JustinTrudeau
argued that the Harper government should "tighten the LMIA approval process to ensure that only businesses with legitimate needs are able to access the program." (👉)
Here's what's happened to LMIA approvals under his watch. 👇
There you have it. The single academic economist on Morneau's Advisory Council on Economic Growth did not support the Council's 2016 recommendation on heightened immigration rates. 👇 cc:
@CharlieHBuckley
@mikalskuterud
@CharlieHBuckley
I saw no reason then, and I see no reason now, to think that increases in immigration can be the central plank of a growth strategy, at least not the kind of growth we should care about. I fought that fight on the Council and lost.
"🇨🇦's population growth will likely slow from its current frantic pace ... but not by all that much. Barring a vast improvement in productivity, 🇨🇦’s per-capita GDP – and our standard of living – appear headed for an outright decline."
Reminds me of the bankrupt son who told his dad "the problem's not my spending" (his choice); "it's my income" (his constraint).
The fed's choice is immigration (they unilaterally set levels). Their constraint is the housing stock (overwhelmingly determined by cities).
Tight labor markets can increase labor productivity because companies find ways to generate more output per hour when they're paying more wage $$ per hour
One of the bigger users of the Low-Wage Stream of Canada's Temporary Foreign Worker Program is Northland Properties, owner of Denny's Restaurants. Here are their approved positions in recent years.
And here are some (there are more) of Canada's Tim Hortons restaurants relying on the Low-Wage Stream of the Temporary Foreign Worker Program to meet their labour needs.
*NEW* Here is today's update of Ontario hospitalizations.
Note that we're now seeing *declining* numbers exactly two weeks after the *reopening* of Ontario's schools.
Not everyone predicted this but a few (noticeably quieter) voices did.
Here are the rates ... 1/2
Worth noting that Canadian academic economists who study Canadian immigration have been drawing attention to these absorptive capacity issues since 2016. Ignoring the tradeoffs doesn’t make them go away.
14 year-old son has a close friend who’s a Pakistani immigrant. They were discussing if going anywhere this summer. Son said grandparents’ cottage. Friend told him he thought “cottages” were a religious place for white people because only white people say they’re going there.
The average wage of Canada's low-skill workers, after adjusting for inflation, was *lower* in June 2023 than it was in June 2019.
Good if you employ low-skill workers. Not so good if you are one. 1/4
Century Initiative advocates for responsible population growth – not growth at all costs. Our Scorecard is designed as a roadmap to help policymakers navigate Canada’s aging population to secure our long-term prosperity. Check it out here:
Canada's real GDP per capita has now fallen for two consecutive quarters. Is that a per capita recession? It was lower in the 4th quarter of 2022 than in the 4th quarter of 2018. Not good.
If healthcare was bought and sold in competitive markets, the effects of heightened population growth would be playing out in prices, like housing, instead of longer queues.
'No one wants to spend 20 hours waiting': Canada's doctors say our ERs are in crisis
In a statement, the Canadian Medical Association is calling upon the country's ministers of health to swiftly act to ease long wait times in emergency departments.
This is blatant dishonesty. The government is surely aware that job vacancies in this country have been in decline since May 2022.
👉
Total number of job vacancies:
May 2022: 1,036,755
May 2023: 781,000
That's a 25% reduction in only 12 months.
IRCC approved 469,887 study permits between January 2021 and April 2022. 9.4% went to foreign students at private career colleges (PCCs). Here's the 25 PCCs with the most approved study permits and the % of applications to those schools that were refused. h/t
@smeurrens
Here is
@statcan
's 2019 forecast of future growth in Canada's non-permanent resident population. We reached 2.5 million on October 1, 2023. (source: )
I appreciate the intention but when demand increases in a market where supply adjusts sluggishly ("is price inelastic") prices go up. Is demand or supply to blame? That's as silly as asking if the right or left blade of the scissors was responsible for cutting the paper.
Please take some time to read. The question isn't whether Canada needs immigrants; it is how to do immigration in a way that achieves objectives while maintaining strong public support. To do that, we need to be more honest about the challenges.
2021: Feds begin to carve out exemptions in skilled immigrant selection system (Express Entry) to appease lobbyists.
2023: System unravels as non-permanent resident population explodes with applicants lured by new carveouts.
2024: Feds blame provinces.
See a parallel here?
Tough to reconcile real estate developers' (and immigration advocates') claims of construction labour shortages with absence of real wage growth among these workers over the past decade.
The overriding story of COVID-19 for me is that the economic burden of the pandemic and shutdowns has fallen overwhelmingly on Canada's lowest paid and most vulnerable workers. If you're looking for a story, that's it.
#cdnecon
#cdnpoli
I'm watching Denmark closely.
1. Similar fully vax rate
2. 8-week lead in (ongoing) case surge
3. Hospitalizations showing signs of leveling off
4. Death rate now less than half of Canadian rate in Jan2021 and falling for past 4 weeks
Lots of downsides to the pandemic, but being stuck at my desk for a year certainly boosted my production. Found out this morning I won an Outstanding Performance Award from
@UWaterloo
for 2020. Feeling energized now.
Ben is right - the 5% target is a big deal for 2024-2026 population growth rates. Still a question of how best to do it but kudos to
@MarcMillerVM
for making the tough decision. If you care about immigrants and protecting public support for immigration, it’s the right one.
Taking heat on this.
Guys, do the math. NPRs are currently ADDING 800k annually to population growth. IF the feds do what they say (big if, I know) it means that cohort will be SUBTRACTING nearly 150k annually for the next 3 years. That is an insane delta
If you care about the how Canada's jobs recovery compares to the U.S., this is the chart you should be paying attention to. Despite claims to the contrary, there is no evidence (to date) that our recovery is lagging the U.S..
#cdnecon
#cdnpoli
Polite, indeed. The show’s producer emailed me and my coauthors in advance asking for questions on immigration to pose to the PM. We offered two hard balls. Neither was asked.