Provinces Warn Ottawa That Halving Immigration Will Hurt the Economy

Provinces are raising alarms over Ottawa’s immigration cuts, fearing economic fallout and labor shortages in key sectors.

Provinces Warn Ottawa That Halving Immigration Will Hurt the Economy
Provinces Warn Ottawa That Halving Immigration Will Hurt the Economy

Saskatchewan: The federal government has decided to cut immigration spaces for economic programs by half this year. This has left many provinces worried about the impact on their economies and labor markets.

All provinces, except Quebec and Nunavut, rely on the Provincial Nominee Programs (PNPs). Now, they’re facing a 50% reduction in their allocations for 2025. Saskatchewan, for instance, will see its spots drop to 3,625, the lowest since 2009.

Drew Wilby, Saskatchewan’s deputy immigration minister, expressed concern, saying employers depend on this program. The cuts were announced without any prior consultation with the provinces.

Ottawa is also reducing the overall immigration target from 485,000 to 395,000 for 2025, with plans for further cuts in the following years. This has raised alarms about how provinces will cope with the changes.

Ontario’s Immigration Department stated that these reductions could hinder the province’s ability to meet employer needs and support economic growth. Many provinces are still figuring out how to adapt to these cuts.

Yukon has even decided to delay accepting its first group of PNPs this year to reassess its approach. They want to ensure that the limited spots available are used effectively to address local labor needs.

Last year, Yukon had the highest employment rate in Canada, but with fewer foreign nationals coming in, businesses might struggle to fill crucial positions.

Alberta’s Immigration Department criticized Ottawa for cutting immigration while imposing such steep reductions on provincial allocations. They argue it undermines the provinces’ decision-making power.

New Brunswick’s Immigration Minister, Jean-Claude D’Amours, emphasized the need for better consultation before such cuts are made. He pointed out that sectors like trades and healthcare rely heavily on the PNPs to fill thousands of vacancies.

Federal Immigration Minister Marc Miller’s office stated that PNP allocations are determined in consultation with provinces. However, many provinces feel that their realities are not being considered.

Experts warn that these cuts could lead to more challenges for both newcomers and those already in Canada seeking permanent residency. The situation raises concerns about potential fraud from immigration consultants targeting vulnerable migrants.

Overall, the federal government’s approach seems to overlook the unique needs of different provinces, which could have long-lasting effects on their economies.

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