Canada is experiencing a job shortage, especially for newcomers, due to its rapidly growing population. This issue is linked to an increase in the number of people living in the country, including immigrants and temporary workers. Here’s a closer look at why Canada is running out of jobs and why unemployment is on the rise.
Why is Canada Facing a Job Shortage?
Canada’s population has grown by 3.2% over the past year, including new immigrants and temporary workers. This is the second consecutive year that Canada has added more than a million people to its population. The rapid population growth has led to an imbalance between the number of available jobs and the number of people looking for work.
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Derek Holt, an economist from the Bank of Nova Scotia, notes that Canada’s immigration policies have led to more people arriving than the job market and infrastructure can handle. This situation has led to increased unemployment among newcomers as there are not enough jobs to accommodate the growing labor force.
According to Statistics Canada, the unemployment rate has risen from 0.2% to 6.6%. Despite an increase of over 82,000 people joining the workforce last month, only 22,100 new jobs were created. This discrepancy highlights the struggle of keeping up with the growing labor force.
Senior Economist Brendon Bernard of Indeed points out that the current unemployment rate of 6.6% is troubling. He explains that the job market is not expanding fast enough to keep up with the increasing number of job seekers. Youth unemployment is particularly high as young people are often more affected by a slowdown in hiring compared to older, more established workers.
The Canadian government, under Prime Minister Justin Trudeau, is facing pressure to address this issue. Some reports suggest that the government may take actions such as deporting some new immigrants to manage the job market and infrastructure better.
In summary, Canada’s job shortage is largely driven by rapid population growth outpacing the economy’s ability to generate enough jobs. This has led to higher unemployment rates, particularly affecting newcomers and young adults.
