Labour Shortages Costing Canadian Business $38bn Each Year

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The Canadian Federation of Independent Business (CFIB) says Canadian businesses are losing out on up to $38 billion in contracts and sales because of labour shortages plaguing the country.

In its latest report, Small Businesses in Canada Hit Hard: The Big Financial Toll of Labour Shortages, the 97,000-strong organization representing small and medium-sized businesses in Canada claims a lack of workers is hitting business hard – and warns the situation could get even worse in the future.

“Challenging demographics and a failure to truly rise to the moment from governments also mean the current situation could deteriorate further in the future,” notes the CFIB in that report.

In Canada, employers can hire foreign nationals who can gain their permanent residency in the country through Express Entry system’s three federal immigration programs, the Federal Skilled Worker Program (FSW), Federal Skilled Trades Program (FST), and Canada Experience Class Program (CEC),  or a participating provincial immigration program.

Through a network of Provincial Nominee Programs (PNP), almost all of Canada’s 10 provinces and three territories can nominate skilled worker candidates for admission to Canada when they have the specific skills required by local economies.


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Successful candidates who receive a provincial or territorial nomination can then apply for Canadian permanent residence through federal immigration authorities.

Canadian employers can also recruit and hire foreign nationals through the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP).

The Global Talent Stream (GTS), a part of the TFWP, can under normal processing situations lead to the granting of Canadian work permits and processing of visa applications within two weeks.

Despite record-breaking immigration to Canada, though, many employers are still struggling to find workers, one of the reasons Immigration, Refugees and Citizenship Canada (IRCC) has recently upped the immigration targets for the coming years.

Under its newly-released 2024-2026 Immigration Levels Plan, Canada is planning to welcome 485,000 new permanent residents in 2024, 500,000 in 2025 and then hold the line on immigration in 2026 with another 500,000 new permanent residents.


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That’s a total of 1.485 million immigrants to Canada over those three years.

The Forum of Ministers Responsible for Immigration (FMRI) is bullish on boosting immigration to resolve labour challenges throughout the country.

“Immigration is critical to addressing labour shortages, attracting new investment, and supporting Canada’s economic growth,” said FMRI provincial-territorial co-chair Jeremy Harrison, the minister of immigration and career training, in November.

Without Enough Staff, Employers Are Forced To Work Longer Hours Themselves

“Provinces and territories play a key role in ensuring that immigration is responsive to employers’ labour needs and benefits all regions of the country. Several provinces and territories are also taking steps to improve foreign qualification recognition to ensure newcomers can work in occupations aligned with their skills and experience.”

The money lost in potential sales and contracts due to labour shortages is something the CFIB considers to be “ a significant amount that could have been a major boon for small businesses, helping them address staffing issues through investments in automation or the still challenging post-COVID recovery on Main Street.”

In a presentation before a standing committee of the Nova Scotia government, CFIB senior policy analyst Duncan Robertson said business owners are working long hours to compensate for labour shortages that amount to 59 hours a week per business.

“There is no doubt based on our data and the lived experiences of our members that over the last two years, inflation and labour challenges have been at the forefront of most business owners’ realities,” Robertson said.

Indigenous Peoples’ Migration and Mobility Rights Prioritized By Immigration Canada

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Canada has made it a priority to ease Indigenous Peoples’ mobility and migration rights, says Immigration Minister Marc Miller, who was previously Minister of Crown Indigenous Relations for five years.

This is reflected in the section to “advance reconciliation as we welcome newcomers” in IRCC’s recent report on the current state of Canadian immigration. It says that in staying consistent with the United Nations Declaration on the Rights of Indigenous Peoples Act Action Plan 2023–2028, IRCC pursue legislative amendments to the Immigration and Refugee Protection Act, amendments to relevant regulations and revisions to policies.

These will be aimed at addressing complex border crossing and migration challenges faced by Indigenous Peoples divided by Canada’s international borders, including options to amend Canada’s right of entry provision, and work and study permit requirements.

“Our aim to improve services won’t only stop with newcomers,” said Miller to reporters. “We’re also addressing border crossings for Indigenous Peoples in Canada.”

These proposed exemptions from post-colonial immigration rules could be of benefit to several First Nations, Metis and Inuit peoples who are currently bound to regular border rules and restrictions, despite having engaged in a years-long battle to be able to travel freely across an ancestral land that now spans parts of Canada, Greenland, Russia, and the US.


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“The imposition of the Canada-US border has been, in the eyes of First Nations, destructive of family, cultural, governance and other connections with US Tribes which are of great importance to their identity as well as to their cultural survival,” read an independent report by Ottawa from 2017.

“The normal flow of family and cultural practices as well as of governmental and membership alliances has been disrupted by current immigration rules.”

Canada – unlike its Southern neighbor – does not recognize the Jay’s Treaty, which allows American Indians to move across borders freely. Indigenous people with Indian status (50% American Indian blood) can thus freely travel from Canada to the US to work, live, and study, but not vice versa.

The problem with mobility is even more exacerbated for the Inuit, who are not recognized as Indian. Respondent to this, the Inuit Tapiriit Kanatami has submitted suggestions to change the wording of the immigration act from “Indians” to “Indigenous Peoples.”


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It further recommends a special “Indigenous Peoples’ Class” so that Indigenous people who are not Canadians can work and live within their homeland in Canada, reported the Toronto Star.

IRCC’s report acknowledged the historic systemic racism and discrimination faced by Indigenous Peoples by saying that it will respond to the Truth and Reconciliation Commission’s Call to Action 93 by reflecting and more accurate and inclusive history of Indigenous Peoples to newcomers to Canada.

This will include information about the Treaty and the history of Canada’s residential schools.

What To Do Before You Arrive In Canada As An International Student

International students coming to study in Canada no longer need to go through the lengthy but temporary processes to protect public health which were implemented earlier during the COVID-19 pandemic.

Although the coronavirus which causes this respiratory illness is still present in Canada, the situation has come under control enough for Ottawa to lift as of Oct. 1, 2022 its public health and travel measures put in place to curb the spread of the illness.

These included:

  • submitting public health information through the ArriveCAN app or website;
  • providing proof of vaccination;
  • undergoing pre- or on-arrival testing;
  • carrying out COVID-19-related quarantine or isolation, and;
  • monitoring and reporting signs or symptoms of COVID-19 upon arriving to Canada.

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Transport Canada also removed COVID-19 travel requirements on the same day, which means travellers no longer need to:

  • undergo health checks for travel on air and rail, or;
  • wear masks on planes and trains.

“Thanks largely to Canadians who have rolled up their sleeves to get vaccinated, we have reached the point where we can safely lift the sanitary measures at the border,” said then-Health Minister Jean-Yves Duclos late last year.

“However, we expect COVID-19 and other respiratory viruses will continue to circulate over the cold months, so I encourage everyone to stay up-to-date with their COVID-19 vaccination, including booster doses and exercise individual public health measures.”

Canada does not require that international students come within a set time frame before beginning  their studies and only advises them to allow for a reasonable amount of time to prepare ahead of starting school.

International students are not allowed to work on or off campus until they do begin their studies in Canada.

Any international students who want to change schools must also be aware that to do so they must submit a new study permit application with a new letter of acceptance and pay all the fees for the new application.

First Step To Studying In Canada Is To Find The Right School And Program

When an international student starts thinking about studying in Canada, the first step is to find a world-class school or program by doing research on those schools and programs which are right for him or her.

“Consider where you’d like to live in Canada’s provinces and territories,” advises EduCanada, the official federal government source about studying in Canada for international students and researchers.

“Across the country, you can choose from small, welcoming rural communities and large vibrant cities.”

EduCanada’s search tool allows international students to get information about colleges and universities but these students can also learn about elementary schools, high schools, and language schools by contacting them directly.


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“If you want to study in Canada, the good news is that tuition fees are generally less expensive than in other major anglophone destinations like the United States, United Kingdom and Australia,” notes QS Top Universities.

EduCanada also provides an online tool to help international students calculate the tuition and living costs based on the program in which they are enrolled.

“You can use our search tool to search and compare tuition and living costs for different college and university programs across Canada,” notes EduCanada.

“Depending on where you choose to study, your costs will be different. To help prepare your budget, use the search tool to get cost estimates for:

  • food;
  • housing;
  • transportation, and;
  • health insurance.”

EduCanada Tool Helps International Students Get Scholarships

In addition to any financial assistance from mom and dad, friends and other family members, the cost of studying in Canada can be offset through scholarship, fellowships and grants as well as by working during one’s studies.

EduCanada offers a way for international students to be able to find those scholarships.

Among the most notable scholarship and fellowship programs are:

  • the Canada-ASEAN Scholarships and Educational Exchanges for Development (SEED) for students;
  • the Canada-China Scholars’ Exchange Program;
  • the Emerging Leaders in the Americas Program;
  • the Study in Canada Scholarships;
  • the Banting Postdoctoral Fellowships;
  • the Organization of American States Academic Scholarship Program, and;
  • the Vanier Canada Graduate Scholarships.

Many students also work while pursuing their studies in Canada and then apply for a Post-Graduate Work Permit (PGWP) which allows them to remain and work in the country upon graduation and pick up valuable experience which counts towards any application they might make for permanent residence in Canada.

Once an international student has decided to come to Canada for his or her studies, the next step is to apply to a school.

“When applying to your chosen school, be sure to provide accurate information and the requested documents,” advises EduCanada.

“Your school will tell you which documents you need and the next steps to follow. Keep in mind that the application fee will vary for each institution. Be sure to apply well in advance.”

Schools in Canada will check the international student’s credentials and qualifications and ask him or her to provide documents, including their:

  • report cards;
  • transcripts, and;
  • academic credentials.

Passports Will Be Requested By IRCC When The Study Permit Is Approved

When a college or university or other school sends the international student his or her letter of acceptance, you will then need to get a study permit from Immigration, Refugees and Citizenship Canada (IRCC). That process can sometimes be completed more quickly by applying through the Student Direct Stream (SDS).

Since the start of December this year, the IRCC has a new version of its study permit application form which must be used by anyone applying through their secure IRCC account.

“Generally, you must apply for a study permit before you come to Canada,” notes the IRCC’s website.

“Some people can apply for a study permit from within Canada. In some cases, you can apply when you arrive in Canada at the port of entry. Make sure you understand which option is available to you.”

The documents an international student needs to apply for a study permit include not only a letter of acceptance from the Designated Learning Institution (DLI) they will be attending but as many of the documents needed for a complete application as possible.

“We won’t be able to finalize your study permit until you’ve submitted a complete application,” notes the IRCC.

In the even that any documents are missing due to COVID-19, the IRCC will require a letter of explanation.

“If you plan to study in Quebec, you must provide a valid attestation of issuance of your Quebec Acceptance Certificate (CAQ),” notes the IRCC.

Canadian immigration officials will ask the international student to send them his or her passport once the study permit application is approved. The IRCC sends that passport back to the international student with the study permit along with a letter of introduction.

“When you travel to Canada, bring this letter with you and show it at the Canada Border Services officer. If you have been approved, the officer will then give you your study permit,” advises EduCanada.

Ahead of arriving in Canada, international students should also arrange for the housing needs and find out what kind of travel and health insurance they will need.

“Canadian students often choose to live on campus during their first year of post-secondary education. As an international student, this option may appeal to you, too. It’s a great way to meet friends and connect with other students,” advises EduCanada.

Getting The Right Health Insurance Vital For International Students

“If you’re sending your child to Canada for high school or an exchange program, they’ll likely stay with a Canadian family as part of a homestay program. Some private high schools in Canada offer dormitory housing to allow students to live, eat and sleep at the school.”

A very important part of any international student’s preparations should be ensuring they have the health insurance they will need in Canada as it can be very distressing to be sick in a foreign country and not know where to go for healthcare or how to pay for it.

“Provinces and territories that offer free health care to international students may require a period of residency in Canada before you are granted free health coverage,” notes EduCanada.

“As an international student, you need to determine whether your province or territory extends healthcare coverage to you. If so, you’ll be able to access doctors and hospitals in that province or territory. This kind of health insurance does not cover dentists, chiropractors, physiotherapy and other similar services.”

There are provinces in Canada, though, where international students cannot count on any free healthcare coverage. In those places, they must buy private medical insurance.

“In Ontario, for example, all international students must have health coverage provided by University Health Insurance Plan,” notes EduCanada.

Travel health insurance is somewhat different from basic health insurance and is generally useful for those who intend to spend less than a year in Canada and live in different parts of the country.

Once those preparations are done, it’s time for an international student to book his or her flight, find out about baggage limits and customs rules – and be sure to bring a small amount of Canadian or U.S. cash with them. They can also download the ArriveCan mobile app on their phones for a faster boarding experience.

“Make sure you have all documents you need to bring with you, such as: the letter of acceptance from your school; medical and immunization records, and; any documents your school asks you to bring,” advises EduCanada.