Canada Housing Market

Canada’s Immigration Minister, Marc Miller, recently announced a strategy aimed at reducing the number of temporary residents in the country. The government’s goal is to lower the percentage of temporary residents from 6.2% in 2023 to 5% by 2027 by converting many of them into permanent residents. “We are looking at ways to ensure our immigration system supports our economic needs but also maintains a fair chance for those seeking to make Canada their home,” stated Minister Miller during discussions with provincial and territorial counterparts.

This policy shift comes in response to the significant increase in temporary residents, which rose from 337,460 in 2018 to 605,851 in 2022, highlighting concerns about Canada’s rapid population growth and its impact on housing and employment. Minister Miller noted the delicate balance needed, saying, “While the influx of temporary residents has influenced our housing market, transforming them into permanent residents could stabilize these effects and enrich our communities. However, it doesn’t automatically entitle everyone to remain in Canada.”

The government plans to adjust immigration policies by capping international student admissions and speeding up the processing of asylum claims to manage population growth more sustainably. “We are moving toward a more controlled and responsive immigration system,” Miller explained. The discussions also include reducing reliance on temporary work permits, which have been a staple in the Canadian labor market. Mikal Skuterud, a labor economist from the University of Waterloo, stressed the importance of a reliable pathway to permanent residency, “The allure of permanent residency has drawn many lower-skilled workers to Canada. A predictable pathway to permanent residency is essential for addressing this influx and ensuring it aligns with our economic goals.”

These discussions are expected to continue over the summer, with new immigration targets set to be finalized and published in the fall. Minister Miller added, “This is about building a sustainable future for all Canadians and those who wish to become Canadians, ensuring our policies reflect the values and needs of our country.” This strategy aims to not only manage population growth but also address labor shortages and control wage inflation by regulating the flow of temporary workers into the Canadian workforce.

Source: One way to decrease temporary residents is to make them permanent, ministers suggest | CBC News