Canada’s Immigrations Levels Begin To Recover From Pandemic Lows

Ottawa, May 12, 2021 — Canada’s immigration levels are beginning to recover after the number of foreign entrants into the country was severely cut back during the pandemic, according to new research from Signal49 Research.

Permanent resident admissions dropped substantially during the first six months of the pandemic, but processing capacity improved over 2020. Between March and December 2020, permanent resident admissions decreased by 56 per cent compared with equivalent months in 2019.

In the first six months of the pandemic, admissions were concentrated in the economic class, while refugee admissions dropped by 72 per cent and family class admissions by 63 per cent. Both refugee and family class admissions, however, increased in the latter part of 2020. As a result, by the end of 2020, the composition of permanent resident admissions was approaching its pre-pandemic distribution.

“The improvement we’re seeing in permanent resident admissions is encouraging and good news for the economy,” says Iain Reeve, Associate Director of Immigration Research at Signal49 Research. “Immigration helps stimulate the economy, and with deliberate policy choices regarding settlement services and credential recognition, these economic impacts can be enhanced as we emerge from the global pandemic.”

The federal government in Ottawa has reacted to the pandemic by increasing planned immigration levels to account for lower landings in 2020. Signal49 Research modelling shows that the government’s plan is economically sound and high levels of immigration could lead to 44 per cent higher GDP growth, a 15 per cent higher working-age people per retiree ratio, and $50 billion more in public revenues by 2036-2040.

These benefits come from the fact that immigrants invest in Canada, are a source of labour and workplace talent, and provide demand for goods and services. Additional measures that Ottawa can take to make the most of immigration coming out of the pandemic include the following:

Compared with previous permanent residents, the Covid-19 cohort is more likely to have Canadian work experience or education. Recent Express Entry draws suggest the number of immigrants with Canadian experience will only increase in 2021. Admissions into Canada has remained relatively high in the Temporary Foreign Worker Program throughout the pandemic, particularly among agricultural workers. This highlights the importance of this work to the Canadian economy.

About the report: 
The report is available to media for editorial purposes and our team of economists are accessible for comment and interviews; please email [email protected] for inquiries and to access the report.