Canada's $11 Billion Opportunity

‘The Diversity Advantage: A Case for Canada’s 21st Economy’ a recent report commissioned by the Royal Bank of Canada (RBC), estimates that if immigrants had the same likelihood of employment as native-born Canadians they would provide an additional $11.2 Billion ($13 B CAD) annually in personal income. The study collected income and other data on immigrants and their Canadian born counterparts, adjusted for an acclimatization period and examined the effect if barriers were removed and parity achieved. The results would be a significant gain in the overall taxable base, raising the standard of living for all citizens.
The study is important as a fresh perspective on the issues of migration and the economy. While there is a good deal of attention to costs associated with immigration, there is less recognition of the potential bounty created by skilled foreign born talent.

The barriers to full employment faced by foreign born in Canada are similar to those in the United States: lack of work experience in Canada, difficulties in transferring foreign qualifications and language problems. Though these barriers to inclusion are recognized by industry and government, coordinating an integrated plan will not be an easy task.

One of the recommendations suggested by the RBC is “business and governments should set up programs that can help integrate immigrants into the workforce at levels commensurate with their skills.” In Canada, one organization, the Toronto Region Immigrant Employment Council (www.triec.ca) aims to provide access to immigrants to help unleash their potential. The group provides mentoring, internships, employer toolkits and public relations to advance their agenda, often using tools created by Upwardly Global.

In reviewing the RBC report, there is a persistent urge by a US reader to extrapolate the results to the United States. By the numbers, foreign born workers make up 18% of the Canadian population, or 5.76 million. In the United States about 10% of residents, 28.4 million, were born overseas, though some states (California – 26%, New York 20%, Florida 18%) have much higher levels. The median annual income in Canada is $47,841* the United States is $44,473 (California: $49,894). The GDP of Canada is roughly $1 trillion, the US: $11.75 trillion. While the relationship of Canada’s $11.2 B in personal income upside to $134 B in the US is interesting, a more intriguing question is, why aren’t more Americans even discussing the subject?

Notes:

The Diversity Advantage: A Case for Canada’s 21st Century Economy, by the Royal Bank of Canada, October, 2005

* The RBC report lists the average the income at $29,725 for all Canadians

For more information contact Rachel Diller at 415.834.9901