Technology-Enabled Immigration: Improving Canadian Productivity

Canada’s lagging productivity is once again taking centre stage. Collectively, it seems we simply can’t make any progress tackling this important economic indicator despite years of evidence that we’re falling further behind, which has knock-on socio-economic effects that could reverberate for years to come. 

Unfortunately, one potential part of the solution seems to be falling out of favour even though it’s as historied in Canada as the problem itself. 

Immigration should remain a top priority for our nation if we’re going to address our productivity trajectory, but recently, it’s a theme that’s fueled more cynicism than optimism.

Yet we must find a way to incorporate immigration into the solution because, without it, our future looks bleak from a labour fulfillment perspective. In fact, just this spring, Bank of Canada senior deputy governor Carolyn Rogers cited “a failure to properly integrate skilled immigrants into the Canadian workforce” as a contributing factor to Canada’s poor productivity.

This is exactly the crux of the issue. Immigration can play a significant role in improving productivity and with it Canadian prosperity, providing a new model emerges that leverages technology to help focus this renewable human resource for a better future. 

The Ongoing Saga of Canada’s Lagging Productivity 

Solving this is unquestionably multifaceted. Canada’s large geography presents transportation challenges. Our higher number of small businesses and lower investments in machinery, research and development, and other tools to improve competitiveness have all contributed to our productivity woes. 

This has correspondingly resulted in a decline in living standards that should be of wide concern. According to the Centre for Productivity and Prosperity – Walter J. Somers Foundation, Canada had a much higher per capita standard of living than other major Western economies at $3,000 in 1981 (adjusted for inflation and currency fluctuations). However, by 2021, it had fallen precipitously and was $5,000 below that same average. The gap is forecasted to fall even further to $18,000 by 2060. 

But it’s not just investment in innovation that can slay the productivity dragon; we also have a human capital challenge.  

Falling Fertility Rates and the Booming Silver Tsunami 

Simply put, we don’t make babies like we used to. 

We can opine on the causes, but here are the facts. Earlier this year, Statistics Canada reported that the Canadian fertility rate hit its lowest level since the agency began collecting data more than 100 years ago. 

Recent data shows a more extreme outcome: The national birth rate fell to 1.33 children per woman in 2022, well below the replacement level of roughly 2.1. Our declining fertility is a trend decades in the making.  

Then there is the compounding impact of retiring baby boomers, the last of whom will turn 65 years old by 2030. This cohort’s exit from the workforce is already creating significant labour supply pressures. The construction industry alone expects 156,000 workers to retire by 2027, and nearly one in six family doctors in Canada is 65 years old or older. We see the same trends in manufacturing, hospitality, and other sectors of the economy, too. 

Labour shortages are productivity killers, and when productivity erodes, so does our prosperity and economic well-being. 

Immigration 2.0 and a Path to Greater Prosperity for Everyone

Immigration has been seen by many as a panacea and historically, Canada has instituted favourable policy. Most recently, the federal government has committed to adding 1.5 million newcomers by 2026. And just as a reminder, this policy isn’t necessarily a partisan issue. Brian Mulroney’s Conservative government increased immigration by more than 150% at the end of his tenure in 1993. 

Problem solved? Not quite.

Adjusting population growth through immigration is only partly the answer. Attracting the right talent and helping them integrate is just as important. 

If study permits are any indication, we’re failing here too. From 2018 to 2023, only 6% of study permits went to foreign students for health sciences, medicine or biological and biomedical sciences programs, while trades and vocational training programs accounted for 1.25%. Greater care is needed to align educational outputs with the opportunities that lie ahead.  

However, it’s not all doom and gloom. It is possible to build on the goodwill Canada is internationally recognized for, with respect to its friendliness towards welcoming newcomers. To do so, we must take a closer look at the experience from their perspective and make sweeping changes leveraging technology to help introduce efficiencies common to other sectors.  

How to Better Support Immigrants

As a starting point, immigration services must evolve. There’s been little change since my parents came to Canada roughly 30 years ago. The application process is overly reliant on endless amounts of paperwork, which is time-consuming and confusing, with little indication of one’s progress along the way. Nations that make improvements here will find it easier to attract the best and brightest from countries around the world.  

And that’s just the pre-landing experience. 

There’s extremely little support for newcomers after they arrive. It’s a challenge to find a place to live and get a phone, bank account, and insurance. Just think about all the services needed to live comfortably and securely. These post-landing services are critical for integration, and yet they aren’t offered, and newcomers are leaving as a result.  

According to the Institute for Canadian Citizenship, the proportion of permanent residents who take up Canadian citizenship within ten years of arrival dropped by a staggering 40% between 2001 and 2021. We can’t let this retention issue fester. 

Arrival on our shores is but half the journey; an entirely new one commences once here. We shouldn’t expect immigrants to navigate a new system with language and cultural barriers in place.  Let’s make it easier for them to find their way. 

We also must focus on attracting the right newcomers to Canada, with suitable employment prospects that leverage their education and talent where it is needed most. Otherwise, job mismatching, regional favouritism and a general “not as advertised” experience for immigrants will continue to be the norm. 

Technology-Enabled Immigration

Here, technology can be deployed to introduce vast efficiencies. Predictive technology simplifies cumbersome application processes. Artificial intelligence algorithms help employers pinpoint candidates based on existing needs. Job application video biographies virtually shorten distances between continents, and video conferencing technology offers many advantages, including interview and job training, ongoing education and connecting newcomers to share experiences, thereby limiting loneliness. 

Working with our employer network and leveraging the technologies listed above, CanPR has successfully helped thousands of new Canadians arrive and thrive here in Canada, with jobs that would have otherwise remained vacant but now benefit from an immigrant’s expertise. And we’re expanding our efforts internationally because we know there’s amazing talent that’s willing to relocate for new opportunities. 

We’re also beta-testing artificial intelligence to answer immigration inquiries and enhance form filling and completion. There isn’t a solution on the market that can manage these complex tasks and do so quickly and accurately, but these developments are quickly taking shape. 

I have high hopes for Canada and believe we can make the necessary changes to increase productivity and, thereby, continue to see our nation prosper. It’s all possible by extending the warm welcome we’re already known for so newcomers can settle into their new environment and contribute to the places they work and the communities where they live.