Economics of Canadian Immigration: Part 1 with Mikal Skuterud
Nov 1, 2024
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In this discussion, Mikal Skuterud, a University of Waterloo professor and seasoned consultant on Canadian immigration economics, shares his keen insights. He critiques the government's handling of temporary foreign workers and the implications of recent shifts in immigration policy. Skuterud emphasizes the importance of balancing temporary and permanent immigration to avoid economic pitfalls. He also highlights how current policies may exacerbate labor shortages and public service strains, calling for clearer, coherent immigration strategies to enhance Canada’s economic resilience.
The podcast critiques Canada's temporary foreign worker program, highlighting its unintended consequences such as wage suppression for low-income workers.
Professor Skuderud emphasizes the need for a balanced approach to immigration that considers both economic impacts and humanitarian perspectives.
The discussion underscores the importance of defining immigration success beyond GDP figures to include social equity and community resilience.
Deep dives
The Canadian Immigration System: Sustainable and Fair
The podcast delves into the complexities of Canada's immigration system, emphasizing the necessity for a sustainable and fair approach, particularly regarding economic immigration. Professor Michael Skuderud, an expert in this field, expresses concerns over the recent trends in temporary foreign worker programs, arguing that these expansions have often led to unintended consequences such as wage suppression for low-income workers. He critiques the government's overcorrection in reducing permanent immigration levels, asserting that while changes were necessary to address temporary immigration, a more balanced approach is essential for long-term sustainability. Ultimately, the conversation points toward a need for a more nuanced dialogue around these immigration policies that considers both economic impacts and humanitarian perspectives.
Rethinking the Necessity of Immigration for Economic Growth
Skuderud challenges the common narrative that immigration is essential for Canada's economic prosperity, arguing that the term 'necessary' implies a dependency that oversimplifies the economic realities. He highlights that while immigration can enhance a nation's economic potential, it is not the sole factor in economic growth, which must be carefully evaluated in terms of its effects on per capita GDP. This perspective encourages policymakers to focus on the quality and integration of immigrants rather than merely increasing numbers. The podcast suggests that a well-managed immigration strategy could yield benefits without the assumption that more immigration directly correlates with better economic outcomes.
Sustainability of Temporary Immigration Programs
The discussion underscores the unsustainable nature of Canada's temporary foreign worker program, accentuating the 'two-step immigration system' where many temporary residents expect eventual permanent residency. Skuderud notes that the growth of non-permanent residents has outpaced the capacity for transitioning them to permanent status, leading to potential oversupply and increased competition for resources. This situation provokes questions about the preparedness of services such as healthcare and housing to accommodate growing populations. The concerns voiced highlight the need for a coherent policy that ensures the transition from temporary to permanent residency is manageable and sustainable.
Inequality and Economic Growth in Immigration Policy
A central theme revolves around the perceived trade-offs in immigration policy, particularly regarding economic growth and societal well-being. Skuderud contends that while enhancing per capita GDP might benefit overall economic statistics, it could simultaneously increase inequality within the population. He draws a stark contrast between highly skilled immigrants who contribute significantly to GDP and low-skilled workers who address essential services, suggesting that relying solely on economic growth metrics can obscure the broader social implications. The dialogue emphasizes the importance of defining success in immigration beyond GDP figures to encompass social equity and community resilience.
The Political Landscape and Future of Immigration Policy
The podcast concludes with insights into the political implications of immigration policy, notably how diverging views within government impact policymaking. There is a concern regarding the backlash against immigration, with calls for regularization of undocumented workers being met with political resistance. This tension raises the question of how to balance public perception with the need for fair immigration practices that recognize the contributions of long-term residents. Skuderud urges a more evidence-based approach to immigration policy that prioritizes stability and long-term planning while addressing immediate labor market needs without succumbing to political pressures.
On these two episodes of Uncommons, Nate does a deeper dive on the economics of Canadian immigration policies, including a look at the unsustainable rise in temporary immigration levels, recent government action to correct those levels, and what is almost certainly an over correction to the permanent resident levels.
In part one, Nate’s joined by University of Waterloo labour economics professor Mikal Skuterud.
Professor Skuterud has written extensively on the economics of Canadian immigration, he’s been consulted by different Ministers, and he’s been a vocal critic of the government’s management of the immigration file, especially with respect to temporary foreign workers.
In part two, Nate is joined by Lisa Lalande, the CEO of Century Initiative, a group that advocates for policies to strengthen Canada’s long-term economic prospects, including by growing our overall population to 100 million people by 2100.
Ms. Lalande argues for strong but smartly managed immigration to ensure Canada’s economy remains competitive and resilient in the long-term, and she makes the case that Canada must build housing and improve healthcare to accommodate smart growth as well as our non-economic goals.
In some ways, the guests are sharply at odds with one another. But in others, there is alignment: that Canada needed to tackle temporary immigration levels, but has caused further unnecessary challenges by reducing permanent immigration levels.Youtube:
This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit www.uncommons.ca
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