By Shaheryar Mian
Opinion.
Immigration is often a hot-button topic, but the federal government’s decision to pursue a high-growth strategy, alongside the hundreds of thousands of international students who are being enticed to come to Canada and then left in dire circumstances, has contributed to recent headlines. Add to that the housing crisis, something that can be keenly felt in Burlington, and it’s clear that we have some challenges ahead for Canada.
Canada welcomed 437,180 immigrants in 2022 (StatCan). According to a recent Bloomberg report: (i) Canada experienced the fastest growth in its population since 1957, rising 2.9% for the 12-month period ending July 1, 2023; and (ii) Non-permanent residents in Canada grew by 46%, which represents the largest jump in the country’s history (source: Bloomberg). Justin Trudeau’s minority government is transforming Canada’s social infrastructure at a staggering pace. The central question I intend to address in this article is: Are these numbers sustainable for a country that desperately needs significant investment and progress in its housing, infrastructure, healthcare, and education system?
Across the country, Canadians are suffering with an unprecedented rise in the cost of living and a lack of housing affordability. Immigration being the antecedent of economic progress, Canada finds itself in a formidable predicament of balancing the interests of its citizens while ensuring a growing population. This briefing provides facts, figures, opinions, and analysis for you to form a view about Canada’s immigration policy.
Canada welcomed over 800,000 students in 2022, of whom Ontario welcomed 411,985 (source: PIE News). The 800,000 intake represents an increase of 33% over the previous year. Students bring skilled labour to the country; they also make use of the country’s infrastructure as it relates to healthcare, roads, and housing. Universities in provinces like Ontario have fundamentally reshaped their student bodies with a rising populace of international students who are charged exorbitant tuition fees of circa $36,100 on average per year for an undergraduate degree (EduCanada), versus an Ontario resident who will pay $7,920 per year for the same degree (Statista). While universities have consistently grown their student bodies along with their endowments, they have contributed very little to some of the pressing problems Canadian provinces face with a rising population — case in point: housing! In fact, there is no federal requirement nor regulation for universities or colleges to ensure adequate housing for their student body. Should universities and colleges pitch in to alleviate the cost of living and housing crisis that overshadows Canada?
The province of Ontario welcomed 184,725 new permanent residents in 2022 (Immigration). Then, of course, there are the 411,985 international students, as mentioned above (PIE News). Permanent residents coupled with students represent nearly 600,000 newcomers in Ontario alone (a staggering 596,710 to be exact). Ontario’s population reached 15,500,632 on April 1, 2023 (Ontario.ca). And: 596,710 divided by 15,500,632 = 3.84%. Staggering, eh!
Make no mistake, international students contributed more than $20 billion to the Canadian economy and supported more than 218,000 jobs in 2018 alone (University Affairs) — those figures are even higher as of 2023. Recruiting international students to study in Canada is a major business with Canadian universities purportedly paying up to 20% of the student’s tuition fee as a “success fee” to immigration consultants/agents. With exorbitant rents and a lack of housing availability, students are living in diabolical conditions and working as gig economy workers to make a living while being robbed of the chance to become part of the skilled workforce of Canada they aspire to be. The system is rigged to benefit Canadian universities without proper oversight or regulatory framework.
A startling Globe and Mail investigation uncovered the murky world of recruitment consultants who exploited international students by luring them into accepting expensive programs at colleges and universities with a promise of a well-paid job upon graduation. The reality, however, was very different: many students ended up working at fast food chains beyond their legal 20-hour limit/week so they could afford to pay for rent and food, coincidentally diminishing their chances of securing employment in their chosen profession. The Globe and Mail pointed to a supposed loophole exploited by immigration consultants to place international students in expensive college programs. Students found themselves working odd jobs to pay their way through school to ultimately secure permanent residency status without achieving the economic promise they signed up for (Globe and Mail). This does not sound like the Canada I grew up in. I attended the University of Toronto, and subsequently McGill for my undergraduate studies, and in the early 2000s, these universities also welcomed students from around the world who didn’t struggle like students in 2023 in finding housing due to a lack of affordability and availability.
According to CIBC, Canada underestimated its non-permanent resident count by nearly 1 million between 2017 and 2022 (Bloomberg). Nearly 750,000 non-permanent residents overstayed their visas during this period in Canada. The non-permanent resident category includes students. What this means is that a great majority of students will actually end up settling in Canada, so the immigration number alone is not accurate when you refer to “newcomers” in provinces like Ontario. The underestimation of this category of residents in Canada points to the current government’s lack of oversight and control. Canada needs to grow its population at a steady pace, but the country must implement a responsible immigration policy that ensures that skilled workers are moving into the country and that our infrastructure can properly support newcomers as well as current residents.
Is the Canadian dream at risk? With one of the world’s greatest land masses, a strong rule of law, a healthy economy, free healthcare, and high educational standards, the economic promise and a chance to start afresh is the Canadian dream. But to some analysts, the reality is very different. For the first time, “Canadians suspect their children will be poorer than they are,“ said a 2023 National Post headline The negative sentiment is compounded by a rising number of young Canadians and recent immigrants “wishing they weren’t Canadian” (National Post). A 2022 Fraser Institute study found that Canadians are waiting longer than ever to see a doctor with a median wait time of 27.4 weeks (after a family doctor referral, through consultation with a specialist, and until the ultimate treatment or surgery) — that figure was 9.3 weeks in 1993 (National Post).
Meanwhile, the Trudeau government set a firm target of welcoming 500,000 newcomers to the country by 2025. Pierre Poilievre, the leader of the opposition, questioned the effectiveness of the immigration system called out former immigration minister Sean Fraser for neglecting refugee claimants who ended up sleeping on Toronto’s streets, and also referenced the growing number of international students relying on food banks and dying by suicide.
A further blow to Minister Fraser’s record is the exploitation of international students by dodgy immigration consultants who exploited Canada’s vulnerable student visa application system by creating forged acceptance letters that duped international students into entering Canada to study, while paying hefty fees — only to ultimately face deportation (CBC). Sean Fraser is now serving as Canada’s housing minister after Trudeau’s recent cabinet shuffle. Housing availability and affordability is a major issue for Canadians, but is Sean Fraser the right man for the job?
There is no doubt that Canada needs newcomers and skilled workers to fill the gaps to propel the country’s economy; but equally, the country’s immigration system needs to ensure it is achieving exactly that. Ultimately what we need in Canada is responsible immigration that helps us create a skilled workforce and productive members of society who are supported by our housing, healthcare, and transportation infrastructure.
While the reasons for the housing crisis are complex, last year, banks began sounding the alarm around housing and the current immigration strategy: TD Bank warned that “continuing with a high-growth immigration strategy could widen the housing shortfall by about a half-million units within just two years”; National Bank amplified TD’s warning by stating that “the federal government’s decision to open the immigration floodgates during the most aggressive monetary tightening cycle in a generation has created a record imbalance between housing and demand”; BMO chimed in by stating that immigration flows to help labour supply added to the housing demand that the government is desperately trying to meet.
None of this is to say that the immigrants themselves are to blame. Surely, the federal government ought to take the blame for colossally failing to ensure that Canadian provinces were equipped with sufficient infrastructure to support the rising number of newcomers.
Concluding remarks
I have been quizzing friends and colleagues about Canada’s socioeconomic framework. It is fascinating that in a world riddled with news, information, and data, we can easily get lost in the details. In the background, Canada is silently going through a seismic socioeconomic shift. Never in the country’s history has such change ensued at such a staggering scale and pace. If we rely on our governments to work in the background without proper checks and balances, we will find ourselves in an unforeseen crisis. Governments must be held accountable for their actions and called out for inaction and negligence that cost Canadian taxpayers their livelihoods. Canada is handsomely meeting its immigration numbers, but not the achievement of a highly skilled workforce it desires. Indeed, a February Statistics Canada report noted that 15% of Canadian immigrants left within 20 years of arriving here. The country lags behind its G7 peers in terms of productivity, with the Bank of Canada sounding the alarm for the low productivity’s impact on higher inflation.
This is a problem: please pay attention.
Please note that this briefing contains paraphrased summaries and attributes the original content to the news sources. Readers are encouraged to visit the links to access the full article in its original form for a thorough and complete view. You may need to subscribe to the news agency and source for access. Photo Credit: (New Canadians). This blog entry aggregates news and research articles, and may contain thoughts and summaries by the author that may be inaccurate, false, or out of date.
Sources:
Aulakh, S., and Kelley, M. Mar. 17, 2023. Dozens of students who could be kicked out of Canada say they were duped by immigration agents in India. CBC, The Fifth Estate. Url: https://www.cbc.ca/news/canada/international-students-immigration-cbsa-ircc-india-1.6782999#:~:text=Featured%20VideoThe%20federal%20immigration,fit%20together%20one%20by%20one. (accessed April 25, 2024).
Bérard-Chagnon, J., Hallman, S., Dionne, M.-A., Tang, J., and St-Jean, B. 2024. Emigration of immigrants: Results from the longitudinal immigration database. Statistics Canada. Demographic Documents, Catalogue no. 91F0015M, ISSN 1205-996X, ISBN 978-0-660-69324-8. Url: https://www150.statcan.gc.ca/n1/en/pub/91f0015m/91f0015m2024002-eng.pdf?st=QkjqYXW- (accessed April 25, 2024).
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Shaheryar Mian is a Burlington-based real estate entrepreneur and philanthropist. Shaheryar started his career in banking in London, England, after graduating from McGill University in 2005. After spending five years in financial services, Shaheryar moved to New York to work in management consulting and subsequently started his own real estate and hospitality company. Shaheryar has been a resident of Burlington for over a decade and has been a fixture of the Burlington business, social, and philanthropic community. Shaheryar’s family business brought immense growth to Burlington’s Appleby Line by building housing through two major building projects, and paving the way for hundreds of jobs in the Burlington retail, healthcare, and restaurant industry. Shaheryar also sits on the boards of the Burlington Chamber of Commerce, and CrimeStoppers Halton, two roles that serve as an important touchpoint for him in the Burlington community.
As part of Shaheryar’s philanthropic efforts, he has helped raise millions of dollars for hospitals, and as well helped raise money for Habitat for Humanity. Shaheryar pursued his graduate studies at Harvard, and Oxford University, and is a CFA charterholder. Shaheryar is currently pursuing his nomination for the federal Conservative party, in the riding of Burlington.
