Canada’s rapid population growth has led to a shortage of jobs for newcomers. Newcomers are not able to get employment because of the increasing population rate of the country. Canada’s economy has introduced one new job for every 6 workers in the country. At the start of the year, the number of jobs was more than the number of workers in the country. But later, in August a surge in labor growth force was observed. 

Derek Holt, an economist with the Bank of Nova Scotia has stated in a report that “Canada overshot on immigration with too much too fast relative to the ability of the country’s job market and infrastructure to absorb so much. Unfortunately, this risk backfiring now and making it into a political issue because of how badly Ottawa has mismanaged immigration and housing files.”

Why Unemployment rate has increased in Canada?

Canada’s population has increased by 3.2% in the last year. This population included foreign students and temporary workers. This is the second year of Canada adding more than a million people in the country. This has forced Justin Trudeau’s government to take action and deport the new immigrants.

A news outlet of Canada stated, “Canada’s unemployment story is less about job losses and more about population growth. Immigration is rising much faster than the country’s economic capacity to create jobs, leading to much higher unemployment for new immigrants and young adults competing for similar roles.”

According to the Statistics Canada report, Canada’s unemployment rate has risen from 0.2% to 6.6%. More than 82,000 people joined the country’s labour force last month, but the net employment increased to just 22,100.

Senior Economist Brendon Bernard’s View: 

A Senior Economist of Indeed, Brendon Bernard has said that Canada’s unemployment rate has reached “worrying levels”. He said, “The story really is that the job numbers aren’t keeping up with that soaring size of the labour force and it’s resulting in a weaker employment situation. That 6.6 percent that we’re now at, it’s trending in the wrong direction. We’ve gone from low to normal and now starting to approach worrying levels.”

“Youth unemployment is way up more than other age groups because they’re the group that’s most vulnerable to the slowdown in hiring, while people in their middle ages generally have more stable employment,” Bernard added.