News This Week: Canada Must Ramp Up Immigration to Fill Labor Market Gaps

Top Canada Immigration News For This Week:

Here are some of the biggest stories from Canadian immigration.

Canada Needs More Foreign Workers

  • Canada urgently requires more immigration in the short term to bolster its working-age population, according to Desjardin's recent Economic Viewpoint report.
  • The study highlights how the current pace of both permanent and non-permanent immigration effectively tackles the country's labor market shortages.
  • Remarkably, the influx of newcomers has contributed to a decline in job vacancies from over one million in early 2022 to 800,000 in April 2023.
  • This trend corresponds with an impressively stable seasonally-adjusted unemployment rate of 1.3 percent, significantly below the pre-pandemic average of 2.2 percent.

Spousal TRV Now Take 30 Days

  • Temporary Resident Visas (TRVs) for spousal applicants are now processed within 30 days by Immigration Refugees and Citizenship Canada (IRCC).
  • The faster processing time and higher approval rate for spousal TRVs mark a remarkable step forward in facilitating family reunification and enhancing the immigration process for aspiring permanent residents in Canada.

Scotiabank & Nova Credit Improve Credit Access For Immigrants

  • Scotiabank partners with Nova Credit to ease credit access for Canadian immigrants.
  • The collaboration allows newcomers to access foreign credit reports when applying for Scotiabank products, aiding in establishing a credit history in Canada.
  • Benefits include better lending rates, higher credit limits, and improved mortgage terms, addressing challenges like opening bank accounts, obtaining loans, and securing insurance.
  • Access to overseas credit histories provides invaluable insights for financial institutions when assessing credit eligibility, despite limited documentation.

Canada Urgently Requires More Immigration to Bolster Working-Age Population

A recent Economic Viewpoint report by Desjardin has emphasized the need for increased immigration in Canada to sustain and increase the working-age population. The report highlights that the current pace of permanent and non-permanent immigration has been instrumental in addressing labor market shortages across the country.

The groundbreaking report in the esteemed Economic Viewpoint journal has shed light on the paramount significance of meeting Canadian immigration targets to drive unprecedented economic growth and prosperity. Canada urgently requires higher levels of immigration to meet its ambitious 2023 immigration target of 465,000. Just over 209,263 have been invited through Express Entry alone

The impact of immigration on job vacancies is evident, with the number of vacancies experiencing a steady decline from over one million in the first half of 2022 to 800,000 in April 2023, largely attributed to the influx of newcomers. Furthermore, this trend has contributed to the seasonally-adjusted unemployment rate standing at an impressive near-record low of 1.3 percent, considerably lower than the pre-pandemic average of 2.2 percent.

The report emphasized the significant proportion of non-permanent residents among the newcomers, specifically arriving to fulfill specific labor market demands at the request of local employers. This strategic approach has proven fruitful in addressing labor shortages while sustaining a historically low unemployment rate.

It also highlighted the crucial role of immigration in maintaining and potentially increasing long-term GDP growth and GDP per capita. Learn more about Canada’s GDP.

Additionally, it ensures the sustainability of government financing, which is essential for the nation's overall economic stability.

Economic immigrants, constituting the largest proportion of newcomers, exhibit higher real wages than their Canadian counterparts. This makes them more attractive to Canadian employers and contributes to their productivity as a dynamic working-age economic group.

Learn how you can immigrate to Canada.

Spousal Temporary Resident Visas (TRVs) Now Processed in 30 Days with 90% Approval

IRCC has reduced the processing time for Temporary Resident Visas (TRVs) for spousal applicants to 30 days, aiming to facilitate quicker family reunification and smoother settlement in Canada.

The new service standard, announced by Immigration Minister Sean Fraser on May 26 in Vancouver, is particularly beneficial for spousal applicants who have already applied for permanent residency in Canada. Instead of remaining in their home countries during the application process, these applicants can now come to Canada and be with their Canadian or permanent resident partners and dependents while awaiting IRCC's decision.

The Honourable Hedy Fry, Member of Parliament for Vancouver Center, stated:

"Family reunification lies at the heart of building vibrant and inclusive communities. In Vancouver, we know that when families are united, they become stable, put down roots, and begin to build a future."

Minister Fraser highlighted the remarkable approval rate of over 90% for spousal TRVs, which is a testament to the efficacy of IRCC's revamped approach. The increase in approvals can be attributed, in part, to IRCC's utilization of advanced analytics in the initial screening of TRV applications. This cutting-edge technology enables the department to thoroughly assess various factors in applicants' profiles, increasing the likelihood of eligibility for permanent residence and streamlining the approval process.

Minister of Immigration, Refugees and Citizenship Sean Fraser, and Member of Parliament for Vancouver Centre, Hedy Fry, unveiled enhanced measures to fortify family reunification. These measures include:

  • Faster processing times for temporary resident visas (TRVs) for spousal applicants.
  • Introduction of dedicated processing tools for spousal TRV applicants.
  • Extensions for open work permits expiring between August 1 and the end of 2023.

When making the announcement, Fraser stated, “Family reunification through immigration is not only a matter of compassion; it is a fundamental pillar of Canadian society.”

The accelerated processing of spousal TRVs offers tangible benefits for families, significantly reducing the waiting time for reunification. While permanent residence applications through family class sponsorship typically take up to 12 months, the new 30-day processing time for spousal TRVs, combined with IRCC's 60-day service standard for work permits, can potentially shorten the overall waiting period to just three months (90 days). This means sponsored spouses, partners, or dependent children can arrive in Canada promptly and begin working while their permanent resident application is under consideration by IRCC.

Scotiabank Pioneers New Credit Solutions for Immigrants to Canada

Accessing credit can be a daunting challenge for immigrants embarking on a new life in a foreign land. Recognizing this crucial issue, Scotiabank, a prominent Canadian financial institution, has taken a momentous step towards empowering Canadian newcomers by partnering with Nova Credit, the world's leading consumer-permissioned credit bureau and Canada's sole cross-border credit bureau.

This groundbreaking collaboration marks a significant milestone as Scotiabank becomes the first Canadian-based bank to offer prospective immigrant customers the ability to access their foreign credit reports while applying for Scotiabank products.

Through this innovative partnership, immigrant Scotiabank customers access Nova Credit's revolutionary Credit Passport® platform, enabling them to unlock their cross-border credit bureau data. As a result, Scotiabank and other businesses can now make more informed decisions when underwriting loans for newcomers to Canada.

The primary objective of this new credit arrangement is to simplify the process of establishing a credit history in Canada for immigrants. Doing so opens up opportunities for accessing funds with favorable lending rates, higher credit limits, and improved mortgage terms. This development addresses the manifold challenges faced by immigrants in various aspects, such as opening bank accounts, securing housing rentals and vehicle loans, applying for credit cards, purchasing major appliances, obtaining insurance coverage, making international calls, and even enjoying vacations.

One of the most significant advantages of accessing overseas credit histories is the invaluable insights it provides to financial institutions like Scotiabank. Despite limited documentation, these insights into borrowers' financial behavior, repayment patterns, and creditworthiness contribute to a more holistic assessment of credit eligibility.

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