Author Archives: CICS Immigration Team

Rate of Self-Employment Decreases for Sons of Immigrants, Increases for Daughters -Study

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Self-employment rates of Canadian-born sons of immigrant parents are lower than that of their fathers, while those of Canadian-born daughters of immigrants are higher than that of their mothers' generation. (Eric Ward)

A study on intergenerational changes in self-employment rates among immigrant parents and their children finds that the Canadian-born sons of immigrant parents are less likely to be self-employed than their fathers, and are likely to choose self-employment for different reasons, while the Canadian-born daughters of immigrant parents are more likely to be self-employed than their mothers.

According to the Statistics Canada study, 12 percent of Canadian-born sons of immigrant parents aged 25 to 44 were self-employed in 2006, while 14 percent of immigrant fathers were self-employed at the same age in 1981. For Canadian-born daughters of immigrant parents, the self-employment rate increased to 7 percent, from 6 percent for their immigrant mothers in 1981.

The factors “pushing” individuals into self-employment differed between second generation and first generation men as well.

Among immigrant fathers in 1981, the main motivation for choosing self-employment was lack of employment opportunities, while among their Canadian born sons in 2006, there was a higher likelihood that expectations of greater earnings motivated them to choose self-employment.

The study finds that the generational decline in self-employment rates among the Canadian-born sons of immigrant parents is due to a larger trend in the typical life course events of Canadian men. Canadian men aged 25 to 44 have less work experience, are less likely to be married and have fewer children than their fathers when they were at their age.

Conference Board of Canada says Canada Needs More Investment to Utilize Skilled Work Force

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More investment into capital equipment like industrial robots is needed to boost productivity according to an Op-Ed by the Conference Board of Canada (KUKA Roboter GmbH, Bachmann)

A new Op-Ed by the Conference Board of Canada, a non-partisan Canadian economic think tank, makes the case that Canada’s tepid productivity growth over the last three decades is due to an insufficient expansion of physical capital.

The report lauds the quality of Canada’s labour force:

Canada can boast one of the top workforces in the world. Compared with many other developed countries, Canada has a very high proportion of college- and university-educated workers in the labour force. Only Finland surpassed Canada in the Conference Board’s How Canada Performs analysis in Education and Skills– our best showing across six socio-economic categories.

And argues that Canada’s workers, while well-educated and capable, have not been given the “machinery and equipment, technology, and infrastructure” needed to maximize their productivity.

It notes that the ratio of physical capital to human capital decreased dramatically from the mid 1980s onward, and this corresponded with a slow down in productivity growth -from 2.8 percent per year in the 1962 to 1984 period, to just 1.2 percent per year in the 1984 to 2010 period.

The report gives several reasons for the decrease in investment in physical capital:

  • A weakening Canadian dollar in the 1990s and early 2000s, which made foreign-made capital equipment more expensive for Canadian companies
  • The introduction of the capital tax, a tax on the value of a company’s taxable capital, in 1985
  • Trade barriers like tariffs between Canada and other countries
  • Insufficient investment in Canada’s public infrastructure
  • A weak venture capital market which has prevented a greater number of successful firms from being launched in Canada

The authors note that there have been improvements in all of these areas in recent years, with a stronger Canadian dollar since 2003, the elimination of the capital tax in 2006, large investments by the federal government into infrastructure projects since 1999, the elimination of tariffs on machinery and equipment in 2009, and recent inter-provincial agreements to reduce domestic trade barriers, like the TILMA between BC and Alberta.

They say these improvements have resulted in strong growth in capital investment since 2005, including a 25 percent increase in the last two years.

The report recommends more work to develop the venture capital market, improve advanced education, and reduce trade barriers, as well as increasing infrastructure investment, to enhance future productivity.

UBC President Urges Canada to Work to Attract Asian Students

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UBC's Okanagan campus. The number of international students in Canadian universities has doubled in the last decade. (Cyprien Lomas)

A new report commissioned by the influential Canadian Council of Chief Executives says Canada must succeed in attracting Asian international students and building links to Asian academic institutions.

The report by the president of the University of British Columbia, Stephen Toope, says that emerging Asian economies like China and India are making significant investments in building academic links to the rest of the world, and that Canada must do the same and work to attract Asian students and researchers while promoting study abroad programs for Canadian students to build institutional partnerships.

Toope recommends ten steps to position Canada as the premier destination for Asian students and researchers and partner of choice for Asian academic institutions:

1. A cohesive international education strategy- creating a unified national strategy that incorporates and coordinates the activities of different governmental and non-governmental parties to more effectively promote Canadian academic institutions.

2. Build the Canadian brand- a collaborative approach by Canadian universities, the Canadian private sector, and local, provincial and federal governments, to promote the Canadian brand abroad to prospective international students, researchers and institutional partners.

3. Targeted recruitment of Asian students and researchers- initiating a recruitment campaign to attract Asian students and researchers, particularly in India and China, in order to cement Canada’s position as a premier destination for studying abroad.

To attract top talent, adding to the retinue of scholarships offered by Canadian universities and governments, and expanding existing scholarship programs like the Vanier Canada Graduate Scholarships and Banting Postdoctoral Fellowships.

4. Two-way short term mobility- increasing the number and scale of study-abroad programs for Canadian students to give young Canadians international experience and to promote an image in foreign countries of Canada as a country that is globally minded and committed to future educational advancement.

5. Develop key institutional partnerships- building meaningful academic links to Asian institutions that demonstrate to foreign countries that Canada is committed to becoming their partner, and not just their recruiter.

6. Internationalize curricula in Canada- in order to internationalize Canadian students, introduce more Asian content into Canadian educational curricula, “from kindergarten to university”.

7. Leadership from the private sector- partnerships between different levels of government and the private sector to fund educational initiatives like study-abroad programs and to provide internships for international students studying in Canada.

8. Invest in international research collaboration at scale- creating a large, federally funded, global research fund, that is allocated competitively by granting councils, to fund international research collaboration that increases participation by Canadian students and faculty in international research projects.

9. Knowledge exports- Continued collaboration by Canadian universities in “curriculum development, pedagogy, research and mentoring university administrations” with Asian universities looking to develop their academic offerings, in order to build on Canada’s reputation as a provider of high quality education and to expand the knowledge export industry.

10. Leverage international alumni networks- use international alumni of Canadian universities in marketing campaigns to promote Canada and its academic institutions abroad.

The report argues that Canada must broaden academic connections to Asia because it increases the country’s cultural and economic links to rapidly developing Asian economies which will become increasingly important to Canada’s future economic well being.

Toope points out that international students also have a positive economic impact through the $6.5 billion they spend each year on tuition, accommodations and other expenses.

Toope says that thanks to recent immigration policy changes that make it easier for international students to receive work permits and permanent residence in Canada after graduating, many international students are choosing to stay in Canada after completing their studies, where they contribute their skills to the Canadian labour market.

Vancouver Sees 12 Percent Drop in Housing Prices in July from Same Time Last Year

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Year on year home prices declined 12 percent in Vancouver in July

Vancouver, one of the most popular Canadian housing markets for the country’s immigrants, saw the average value of real estate purchases in July drop 12 percent from the same period last year, according to data collected by Bloomberg News.

The city’s real estate prices have boomed in recent years due in large part to foreign investment from China and home purchases by Chinese immigrants, who are the city’s largest foreign born ethnic group.

With a cooling Chinese economy and Vancouver home prices that have risen to become the highest in Canada though, many this year have been warning that Vancouver’s real estate market is in a bubble.

Toronto also saw a slow down in its real estate market, although it was much more moderate, with year on year home purchase volume decreasing by 1.5 percent in July.

Guinean Deported In Spousal Sponsorship Case Marries New Canadian Woman

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Soumah, who was deported back to the West African country of Guinea this year, is appealing the deportation order based on the results of a new paternity test that his lawyer says shows he did not lie about not having a dependent (CIA)

A Guinean man who was deported from Canada after his Canadian wife and sponsor for permanent residence alleged that he lied to her about a child he had fathered and walked out on her three weeks after arriving in Canada has married another Canadian woman, it has emerged.

Lainie Towell married Fode Mohamed Soumah, a native of Guinea and ten years her junior, and sponsored him for immigration to Canada in 2007. Soon afterward, Towell learned in a phone call from a mutual friend in Guinea that Soumah had fathered a child with a 15 year old girl in his home country. She also discovered emails that Soumah had sent to his friends that led her to believe that Soumah was the baby’s father.

The Immigration and Refugee Board agreed with Towell and ordered Soumah deported in 2009 for not having declared his dependent to Towell during his application for permanent residence. In February 2012, after three years of appeals, Soumah was deported from Canada.

The new development in this story is Soumah’s marriage to another Canadian woman, Cassandre Blier, who he met 16 months after his marriage with Towell ended.

Blier and Soumah filed a lawsuit on July 23rd seeking to ban the publication of Towell’s book about the events, How to Catch an African Chicken: A Canadian Woman’s Outrageous but True Story of Marriage Fraud. A Superior Court of Québec justice ordered the sale and marketing of the book halted for 30 days to prevent potential damage to Soumah’s reputation.

The lawyer representing the married couple in the suit, Denis Roumestan, says that a paternity test proves with 100 percent certainty that Soumah is not the father of the child. He also said that Soumah is appealing the deportation order in light of the paternity test.

Towell is not backing down, insisting her book is an accurate account of events, and says she feels sorry for Soumah’s new wife and believes she is a victim.

Statistics Show Bogus Asylum Seekers Racking Up Health Care Costs

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George Dumont hospital in Moncton. The Canadian government spends approximately $20 million a year on health care for asylum seekers. (Stu Pendousmat)

Immigration Canada released statistics on health care spending for refugee claimants yesterday to bolster its case that the recent scaling back of free health care for asylum seekers was necessary.

The statistics show that refugee claimants from Mexico, Hungary, Columbia, the United States and Jamaica, all countries that do not have a record of human rights abuse and persecution, received millions of dollars worth of Canadian health care services for free through the Interim Federal Health Program (IFHP), and proportionally more than asylum seekers from any other country.

Immigration Canada’s data shows that health care costs for 8,819 Mexican asylum seekers came to $7 million last year, for 6,749 Hungarians to $4.4 million, for 4,583 Columbians to $2.6 million, for 3,790 Americans to over $1.4 million and for 809 Jaimaican asylum seekers to $808,000.

Almost all of the claimants from these countries end up not attending their refugee hearings, withdrawing their refugee application, or having their claim rejected by the Immigration and Refugee Board (IRB) of Canada.

Immigration Minister Jason Kenney said that this made it necessary to reduce the range of free health care services provided to asylum seekers to prevent abuse of Canada’s refugee system.

“That does underscore the reasons why we’ve reformed the Interim Federal Health Program. There’s no doubt that it has been a draw factor for many false asylum claims,” commented Mr. Kenney.

Under changes to Canada’s Refugees System with the enactment of Bill C-31 on June 11th, free pharmaceutical, vision and dental care for refugee claimants was eliminated, which supporters of the cuts argue is fair as none of these services are available to Canadian citizens through Medicare.

The extent of the abuse of the Interim Federal Health Program was highlighted by Minister Kenney as he cited interviews Canada Border Service agents have conducted with some Hungarian asylum seekers when they were withdrawing their applications for refugee status, in which the claimants admitted that they had come to Canada to receive free dental care for their children, and now that they had gotten it, there was no reason to stay.

Immigration Canada Launches Online Consultations to Improve Federal Investor Program

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The federal government is launching online consultations today to get feedback from the public on how to improve the federal Immigrant Investor Program.

Citizenship and Immigration Canada (CIC) today launched an online consultation campaign to solicit input from the Canadian public on ways to modify the federal Immigrant Investor Program (IIP) to increase the benefit it provides to the country.

“We can no longer be a passive player in the global competition for talent and investment. That is why we need to review our immigration programs to create dynamic opportunities that enable immigrants’ investments to directly benefit the Canadian economy,” said Immigration Minister Jason Kenney in a statement put out today.

Acceptance of new applications under the federal IIP was temporarily suspended on July 1st to give the federal government time to revamp the program to address shortcomings it had according to the Immigration Ministry.

One change that CIC has signalled it is considering is requiring immigrant investors to make an active investment in the Canadian economy. The current investment requirement for applicants under the IIP is to provide an interest-free loan of $800,000 to a province or territory for five years, which CIC representatives have argued is too passive and does not contribute enough to the Canadian economy.

The online consultations are open to the public until September 4th 2012, and CIC says it is planning to re-open the investor program in the beginning of the 2013.

Group Suing Government Over Wipe-Out of 280,000 FSW Application Backlog Making One Last Try in Court

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A group of immigration-hopefuls whose applications for permanent residence in Canada were wiped out by legislation passed by parliament on June 29th are asking a federal court judge to order CIC to process their applications on 'humanitarian and compassionate' grounds. (Montrealais)

A group of approximately 900 people whose applications for permanent residence in Canada were closed after the federal government wiped out the back-log of 280,000 Federal Skilled Worker program applications are making one last attempt in court to force the federal government to process their applications.

The group had previously scored a victory when a federal court justice ruled that the federal government must assess their applications due to the legal obligation it had to process applications in a timely manner once it had filed them. Soon after the ruling, Bill C-38, legislation which includes a legal provision that wipes out the back-log of applications that were filed before February 27th 2008, was passed, which the federal government argues invalidates the court ruling.

The lawyers representing Citizenship and Immigration Canada (CIC) stated that the federal government would process the applications of 165 of the litigants whose files were not among the 280,000 applications in the backlog, but that the applications of the remaining litigants would not be processed as they were eliminated by Bill C-38 when it was passed on June 29th.

The group’s lawyer, Tim Leahy, is making a final effort to save the group’s applications and asking the presiding judge to order CIC to process the group’s applications on ‘humanitarian and compassionate’ grounds.

Canada’s Real Wage Growth Stagnant For Last 30 Years -Report

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Average hourly wages increased by only three dollars from 1981 to 2011 after adjusting for inflation

A report published last month as part of Statistics Canada’s Economic Insights series finds that average real wage rates increased by only 14 percent in Canada from 1981 to 2011.

According to the report, real hourly wages, meaning hourly wages after adjusting for inflation, increased from approximately $20.70 in 1981, to $23.70 in 2011, a $3 wage gain in 30 years. Median real hourly wage growth was even more meager, increasing by approximately $2, to $20.90, between 1981 and 2011 -a 10.6 percent increase over three decades.

Different rates of wage growth were observed in the earlier and latter halves of the last 30 years, with average real hourly wages rising by only 4 percent in the 17 year period from 1981 to 1998.

After deep spending cuts by the federal government in the mid-1990s, which brought total government spending levels down from 53 percent of GDP in 1992, to 43 percent of GDP in 1998, the rate accelerated, with wages increasing 10 percent in the 13 year period from 1998 to 2011.

Much of the developed world has experienced wage stagnation over the last four decades. Explanations for the slow down include:

  • the break-down of the Bretton-Woods system, which pegged the world’s currencies to gold, in 1971, and the subsequent increase in monetary inflation, resulting in nominal wage hikes not keeping up with inflation
  • globalization and corporate outsourcing to low wage countries
  • an ‘innovation saturation’ as economies mature
  • the entrance of women into the work force increasing the supply of labour
  • an increase in government spending levels diverting economic output from private sector investments

Nominal wages in Canada increased by 1.1 percent in 2011, substantially less than last year’s annual inflation rate of 3.2 percent.

Crime Rate in Canada at 40 Year Low, Still Above 1962 Levels

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Canada's crime rate is now at a 40 year low, after eight consecutive years of declines in the incidence of police-reported crime (UNODC)

Statistics Canada reported this week that the incidence of police reported crime declined 6 percent in 2011 from the previous year, and is now at the lowest level it has been since 1972.

The Crime Severity Index, which measures the severity of crime, also fell 6 percent, while the Violent Crime Severity Index, which measures the severity of only violent crimes, dropped 4 percent, continuing a two decade long downward trend in crime rate metrics.

Canada’s crime rate was 3,000 incidents per 100,000 residents in 1962, but then rapidly increased through the 1960s and 70s. The increase in the crime rate slowed in the 1980s and finally reached its peak in 1991, before beginning its 20 year decline to the present.

The current rate of 6,000 incidences of crime per 100,000 residents is 40 percent lower than the 1991 peak, but still double the rate in 1962, a fact that the federal Public Safety Minister, Vic Toews, stressed on his Twitter account after announcing the milestone.

“Rate is still 208% above 1962 levels, more work for our gov’t to do,” Toews tweeted.

The Statistics Canada report showed Manitoba and Saskatchewan with the highest Crime Severity Index among the provinces, and Ontario the lowest.

Much of the violent crime in Manitoba and Saskatchewan is concentrated in the provinces’ sizable native communities which have been racked by high rates of alcoholism and violence for decades.