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Study by Statistics Canada says immigrants boost the productivity of Canadian businesses

Posted on September 22, 2020
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Immigrants boost the productivity of Canadian businesses

When immigrants move to a country especially for work, they move there for better pay, a better quality of life and a higher lifestyle. Immigrants hired by businesses in foreign countries also hope to make the best use of them in growing their enterprise and increasing their profits, so it is a win-win proposition for both parties.

This fact was validated by a recent study by Statistics Canada.  The study assessed the impact of immigration on the productivity of businesses in the country. The study titled “Immigration and Firm Productivity: Evidence from the Canadian Employer-Employee Dynamics Database” is based on data collected from individual businesses in Canada which assesses the impact of immigration on productivity, worker’s wages and the profits made by businesses.

 According to the study, between the years 2000 and 2015, immigrants in Canada accounted for 13.5 percent of the workforce in businesses. The study reiterates that the number of immigrants employed by local businesses can fluctuate in a range pf 15%. It can increase or decrease by 15% according to statistics gathered in the study.

The study also highlighted the positive relationship between an increase in the number of immigrant workers and business productivity. Immigrants also have a positive effect on worker’s wages and the profits made by a business according to this study.

The study also discovered that the increase in the length of the study resulted in a corresponding increase in the productivity figures. For instance, the increase in productivity for one year was significantly lesser than the increase in productivity over a five-year period.

The factors that contribute to the increase in productivity are the complementary nature of the skills of immigrant workers with those of native workers which is crucial to improving worker productivity especially in technological or knowledge-based industries where there is a high degree of division of labor and work specialization.

Another factor that helps to increase productivity is that in these sectors the less educated immigrants may work in jobs that are different from but is complementary to the work done by the local domestic-born high tech or knowledge-intensive workers. This is a contributing factor to increase productivity.

On the other hand, highly-skilled immigrants also contribute to improving the productivity of business because of their specialized skills and promote the use of new technologies and promote innovation.

 This study reiterates the fact that immigrants contribute to the growth of Canadian businesses and the Canadian government recognizes this fact.

The Canadian government is determined to continue and enhance its economic class programs and support integration programs for immigrants in order to ensure that immigrants continue to contribute to the development of the businesses and the economy of the country. On the other hand, immigrants arriving in Canada will continue to thrive in the country.

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