ECON 318 Lecture 91: Econ 318_F2016_Chapter_091_Canadian Immigration_The Economic Factor
12 Nov 2016
School
Department
Course
Professor
ECON 318: Canadian Economic Policy & Institutions 2016-2017
Notes for Lecture -- 091
CANADIAN IMMIGRATION: THE ECONOMIC FACTOR
Background material
Green, A. & Green. D., “The Economic Goals of Canada’s Immigration Policy, Past and Present”, July
1996, Discussion Paper 96-18, University of British Columbia, http://www.econ.ubc.ca/dp9618gr.pdf
Research on Immigration and Integration into the Metropolis, www.riim.metropolis.net
Immigration, Refugees and Citizenship Canada, “Annual Report to Parliament on Immigration, 2015”
http://www.cic.gc.ca/english/resources/publications/annual-report-2015/
Citizenship and Immigration Canada, “Canada Facts and Figures, 2014”
http://www.cic.gc.ca/english/resources/statistics/facts2014/index.asp
Guillemette Y. and W. Robson. “No Elixir of Youth: Immigration cannot keep Canada Young”, C. D. Howe
Institute, September 2006, http://www.cdhowe.ca/
Beach, C. “Employment-based permanent immigration: examining the value of a skills-based points system.”
Presentation to US Senate Committee on Health, Education, Labor and Pensions, Sept. 2006.
Immigration, Refugees and Citizenship Canada, “Quarterly Administrative Data Release, 2015-Q4”
http://www.cic.gc.ca/english/resources/statistics/data-release/2015-Q4/index.asp
Introduction
Canada, as well as our southern neighbour, the United States, were not only built by immigrants in
the relatively recent past, they continue to constitute the biggest arrival zone in the world for them.
Immigration is a defining feature of Canada’s development as a nation and its path to the future.
Much of what Canada stands for today has been built on and shaped by immigrants of the past, and
newcomers will continue to significantly contribute to Canada’s economic prosperity in the future
At the present time the annual flow of immigrants to Canada – a quarter of a million people on
average – makes up more than two thirds of the country's population growth rate.
Some provinces, Quebec included, have such a low natural rate of reproduction that, were it
not for immigrants, the population would be falling significantly.
It is expected that, within the next decade, all labour force growth will come from immigration,
which presents opportunities as well as challenges
Responsibility for overseeing the flow of immigration lies with the Department of Immigration,
Refugees and Citizenship Canada (IRCC). IRCC aims at
recruiting the best and the brightest people to meet the current and emerging demands of the
Canadian labour market,
while also reaching out to help those most in need,
and successfully help in integrating all newcomers on arrival in Canada
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Evolution of the Immigration Policy – The Early days
Green & Green trace Canada’s immigration policy from 1870.
Historically, our immigration legislation has given great powers to the cabinet of the day and this power
has been exercised to the full in the period since the late 19th century.
Immigration policy has struggled with striking a balance between
the long term interests of the economy – having a larger population which could settle the land in
the early days, and one which might help to smooth uneven demographics in the modern era, and
the short term interests – having fewer immigrants in periods of recession or high unemployment.
In this context, it should be clear that the decision to maintaining high levels of immigration in the early
1990s, during a deep recession, was a decision in favor of Canada’s perceived longer-term interests.
However, immigration swells and troughs do not affect all interest groups equally.
In the early days the interests of landowners and the owners of capital were served by the influx of
workers. Indeed in 1925 the federal government commissioned the railway companies to embark on
the task of securing suitable immigrants for the west. Since the railways had been given large land
grants, which they were able to sell/give to settlers, it was clearly in the companies’ interests to have
more settlers. In addition such settlers would grow more crops that in turn would require the services
of the railways to bring the grains to market.
At the same time, large influxes of labour could drive down wages and thereby not be in the interest
of the existing workers.
In addition to this set of three stakeholders, there are also the interests of existing migrants and the
government itself. Earlier immigrants generally favored rules permitting them to sponsor their
immediate families, yet at the same time their interests as workers would not be well-served by the
addition of large increments to the labour force.
Historical Highlights
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1870-1913
The period 1870-1913 saw the settlement of the west
High levels of investment and economic growth.
Immigration was part of a set of national policies that included the construction of transcontinental
railways, and
The protection and a land policy aimed at inducing immigrants to settle in the west, all with a view to
tying Canada together.
The 1910 Act
The goal of immigration prior to WWI was to secure farmers and farm workers primarily from English-
speaking countries, or northern Europe. The focus on the source of migrants at that time was clearly stated in
the 1910 Act:
“The Governor in Council may prohibit ... the landing of immigrants belonging to any race
deemed unsuited to the climate or requirements of Canada, or of immigrants of any specified class,
occupation or character.”
1919-1931
In 1919 further regulations were put in place.
These required prospective immigrants to pass a literacy test, to have a valid passport, and added the
word ‘nationality’ to ‘race’ in the previous paragraph. English-speaking and northern European
countries were still favored, and farmers and farm workers were the hoped-for immigrants.
Interestingly, the railways recruited in central and eastern Europe, despite the government’s
preference for migrants from west and north Europe – an example among many of the inconsistencies
characterizing our actions in relation to immigrants.
1931-1946
After 6 decades of active recruitment abroad, Canada essentially closed her doors to immigrants with
the depression of the 1930s and the Second World War.
The only real exceptions to this were immigrants from the UK and the US.
1946-1960
Canada essentially restored her policy of seeking immigrants from specific countries in order to
expand her population and further settle parts of the west. Green and Green quote Prime Minister
Mackenzie-King’s 1947 address to the House of Commons:
“Canada is perfectly within her rights in selecting the persons whom we regard as desirable future
citizens. It is not a fundamental right of any alien to enter Canada. …..Large-scale immigration
from the Orient would change the fundamental composition of the Canadian population (!).
Document Summary
Econ 318: canadian economic policy & institutions 2016-2017. D. , the economic goals of canada"s immigration policy, past and present , july. 1996, discussion paper 96-18, university of british columbia, http://www. econ. ubc. ca/dp9618gr. pdf. Research on immigration and integration into the metropolis, www. riim. metropolis. net. Immigration, refugees and citizenship canada, annual report to parliament on immigration, 2015 http://www. cic. gc. ca/english/resources/publications/annual-report-2015/ Citizenship and immigration canada, canada facts and figures, 2014 http://www. cic. gc. ca/english/resources/statistics/facts2014/index. asp. No elixir of youth: immigration cannot keep canada young , c. d. howe. Beach, c. employment-based permanent immigration: examining the value of a skills-based points system. Presentation to us senate committee on health, education, labor and pensions, sept. 2006. Immigration, refugees and citizenship canada, quarterly administrative data release, 2015-q4 http://www. cic. gc. ca/english/resources/statistics/data-release/2015-q4/index. asp. Canada, as well as our southern neighbour, the united states, were not only built by immigrants in the relatively recent past, they continue to constitute the biggest arrival zone in the world for them.
