Labour shortage, my ass; Unemployment rises to 6.4% in June

[QuebecOverCanada]

One of the main arguments as to why Canadians have to endure such high immigration levels is the supposed labour shortage. 

The Canadian Chamber of Commerce always lobbies for more immigration, as it whines that the employers have to go through such hardships to find the right candidates for the roles they're hiring for, despite record profits for many canadian corporations in recent years when wages remained stagnant. In Prince Edward Island recently, the lobby for the business owners had this to say about the visa expiring for the temporary workers who tried to scam their way to PR;

Quote

 

'We need immigration, it's just math,' says Charlottetown chamber of commerce CEO

About 100 protesters gathered in Charlottetown on Thursday asking for changes to P.E.I.'s immigration policy to be rolled back, while business representatives told MLAs that the new rules are hurting employers in the sales and service sector.

To put it into context, in 1980 there were 24 people for every 10 vacancies. Now there are seven people for every 10 vacancies, she said. So we need immigration, it's just math.

Blake Doyle, an immigration consultant and past president of the Greater Summerside Chamber of Commerce, said he's heard from businesses that have already lost workers.

There's a real concern that if people aren't allowed to continue their permits … they're going to lose staff, he said.

 

https://ici.radio-canada.ca/rci/en/news/2078934/business-representatives-say-p-e-i-s-immigration-policy-changes-affecting-the-labour-force 

Their argument might sound rational at first. We would have to increase the number of workers to keep some businesses alive. But wouldn't it be right to let businesses with the wrong business model to go under and be replaced by a better business, instead of subsidizing it through cheap labor?

Also, it's not like we are importing skilled labour right now. The jobs that these PEI temporary migrants were occupying were... Tim Hortons', Mc Donald's...

Those jobs that would normally be the first jobs of many young Canadians. And oopsie, look at this graph;

The Youth unemployment skyrocketed to 13.5%. The employers are not going to hire a young person with no experience if they may hire someone desesperate for a job to feed its family. It cuts millions of young Canadians from an entry-level job to build some working experience.

Not only is the youth bleeding from this mass migration when interest rates are higher, which is a result from lobbying by the corporations to suppress wages, but it is now affecting the economy at large.

Canada's unemployment rate is now at its highest point in two years, reaching 6,4% in June. https://www.ctvnews.ca/business/canada-s-unemployment-rate-rose-to-its-highest-level-in-more-than-2-years-last-month-1.6952618

The US has an unemployment rate of only 4,1% in June of this year, with a slightly higher interest rate and a much lower per capita immigration.

It's not time to cut interest rates. It's time to cut immigration.

[impartialobserver]

No comment on the validity. However, want to commend the OP on writing something that was concise, coherent, and used quantitative data. A lot of the time you read these and the bias is as clear as day.. not quite this time. Job well done. 

[Michael Hardner]

21 minutes ago, QuebecOverCanada said:

1. One of the main arguments as to why Canadians have to endure such high immigration levels is the supposed labour shortage. 

2. But wouldn't it be right to let businesses with the wrong business model to go under and be replaced by a better business, instead of subsidizing it through cheap labor?

3. Also, it's not like we are importing skilled labour right now. The jobs that these PEI temporary migrants were occupying were... Tim Hortons', Mc Donald's...

Those jobs that would normally be the first jobs of many young Canadians. And oopsie, look at this graph;

 

4. It's not time to cut interest rates. It's time to cut immigration.

1. True but on a macro level.  We should cut back if there's no demand for the workers coming in, obviously.
2. The 'left' has been saying this for years.
3. Well sure but Tim Horton's is a fine Canadian company headquartered in... uh... Brazil ?
4. Agree.   And let's publicize the earnings of these people-importers crying poor too ?

[QuebecOverCanada]

1 hour ago, Michael Hardner said:

1. True but on a macro level.  We should cut back if there's no demand for the workers coming in, obviously.
2. The 'left' has been saying this for years.
3. Well sure but Tim Horton's is a fine Canadian company headquartered in... uh... Brazil ?
4. Agree.   And let's publicize the earnings of these people-importers crying poor too ?

1. Even if it had demand, it could be ill founded. For example, crying foul and whining about the unavailability of workers could be a pretext used by business owners to increase the number of workers to pit them one against each other and bring wages lower. It should be based on the unemployment rate in certain sectors. A rate below 3% in a sector could be a good benchmark for allowing temporary foreign workers for example.

2. Good on the left.

3. Sure, but grocery stores are based in Canada mostly, same as banks and financial institutions. Plus, you may not be the CEO but you may own multiple Tim Hortons' branches across Canada and still make bank on the fact that you're underpaying your staff.

4. Yes.

[herbie]

Truth of the matter immigrants will take those $17hr minimum wage jobs because they have to. Canadian youth thinks they have a choice in the matter. The figure should go down next month when they discover they don't.
Closest WalNutz to here is staffed with 90% immigrants, 5% retirees and 5% local people and 1 indigenous girl. You can't understand a single announcement except for TANKEW at the end. The local grocery shore is so desperate they will hire you if you can so much as manage to show up to be interviewed. Could use some immigrants that work hard enough to make the 30 day probation period.

And speaking of headlines, congratulations for a decent one. Seeing as how unemployment rose 0.2% in a month most others on the forum would've used Unemployment Soars to 6.4%

[QuebecOverCanada]

4 minutes ago, herbie said:

1.Truth of the matter immigrants will take those $17hr minimum wage jobs because they have to. 2. Canadian youth thinks they have a choice in the matter. The figure should go down next month when they discover they don't.
3. Closest WalNutz to here is staffed with 90% immigrants, 5% retirees and 5% local people and 1 indigenous girl. You can't understand a single announcement except for TANKEW at the end. The local grocery shore is so desperate they will hire you if you can so much as manage to show up to be interviewed. Could use some immigrants that work hard enough to make the 30 day probation period.

4. And speaking of headlines, congratulations for a decent one. Seeing as how unemployment rose 0.2% in a month most others on the forum would've used Unemployment Soars to 6.4%

1. Yes. And this situation enriches the business owners, as it's driving wages lower by bringing in more desperate people here. More supply of workers means lower salaries. I'm a right winger, but I'm not stupid. Marx was right all along when it came to the concept of the reserve army of labour.

2. Not quite. Unemployment statistics include only those who are actively seeking employment. It doesn't account for students and those who have dropped out of society. We are talking about 13.5% unemployment for that category, because the jobs that should be entry-level are now filled with desperate people, working for cheap, who don't know their rights and the duties of their respective employers. It's making a generation of young Canadians inexperienced at their expense, which leads to less social mobility and less earnings until retirement as a result. All for the benefit of the upper class.

3. That's a big issue. 90% immigrants in a certain field means that certainly this field pays peanuts, fitting for Walnutz. I have never seen one field labour-wise in Canada where when the immigrants make up most of the staff it's in the favour of the employees or the wages are higher than the average. It's almost always exploitative, low paying fields that resort to this kind of trickery to make sure they don't pay employees well. Call centers, farm jobs, some $18/hour rotating shift jobs at some factories, groceries, Tim Hortons...  All that when once again, the ones at the top make bank on their misery.

4.  Thank you.

6.4% unemployment is certainly hitting hard many Canadians, but it's an issue that can be resolved without resorting to exaggerations.

[CdnFox]

2 hours ago, QuebecOverCanada said:

1. Yes. And this situation enriches the business owners, as it's driving wages lower by bringing in more desperate people here. More supply of workers means lower salaries. I'm a right winger, but I'm not stupid. Marx was right all along when it came to the concept of the reserve army of labour.

 

It also disincentivizes businesses for becoming more efficient. If there is a ready supply of extremely cheap labor then there's no reason to improve the technology or how you deliver services so the more can be done with less.

We need to improve productivity and competitiveness and you don't do that by just shoveling cheap labour at your problems. 

[WestCanMan]

Quote

But wouldn't it be right to let businesses with the wrong business model to go under and be replaced by a better business, instead of subsidizing it through cheap labor?

You could also look at it the other way around: "How can businesses compete with other business that use cheap labour if they don't have access to cheap labour themselves?"

The Americans import millions of slaves a year. By 'slaves' I mean: people with less rights than full citizens, who aren't allowed to hold certain jobs (jobs where you're required to have a social insurance number), and don't have full rights (voting, etc), and so they're tethered to the lowest economic rungs and living in basic poverty compared to citizens.

China forces people into slavery. In places like Dubai they con people into the country with fake offers of lucrative jobs and then take away their passports. Some countries are so poor that they have millions of people willing to work at slave rates. And like I said, the US just says "Don't come here", but then leaves the door open and turns their back so that people sneak in and end up working as basic slaves while hoping that their children will one day be citizens. 

There's a 'labour shortage', but the labour they're talking about is sh1tty part-time jobs that no Canadians want. And before people run and shout that entry-level Canadians should be at the same level as brand new immigrants, just remember that when 4th-gen Canadians came to live on the prairies there was nothing there. No roads, hospitals, malls, etc. There wasn't an abundance of cheap produce in the stores on Feb 15th. They didn't come here and instantly get free access to health care and cozy centrally heated homes to live in. Our ancestors worked 100x harder than any new immigrants can dream of. The new guys are starting off with 'low seniority', like everywhere else on earth. 

[herbie]

3 hours ago, QuebecOverCanada said:

2. Not quite. Unemployment statistics include only those who are actively seeking employment.

Not claiming they aren't looking. They're dismissing jobs they see as menial, like retail etc. Where I live @ 18, High School Grad or not, they only want jobs at the mill (few as things are slow), the mine (handful of summer only jobs) or one of the handful of summer jobs in Public Works. By mid-July some will appear in the grocery store as I stated that's a fer sure job.
Shut my business 10 years back, but I used to hire a couple extra kids every summer to set up transmitter towers and antennas on homes, learn networking and computer servicing when the weather was bad. One kid came back summer after summer until he went off to college. Several left after weeks when Dad got them a job at the mill. One even quit the mill as they 'only' paid him $19 hr... his Dad made $30 he shoulda got the same! I was paying $11 hr when minimum was was $6.25 and had trouble finding kids.

My judgement may be faulty as I'm generalizing, kids elsewhere may be different. I just don't see too many who want to work at A&W in short skirts and roller skates, crawl into boilers and scraper them clean, or lug 2x10s up to the top floor while being yelled at like we all did.

[CITIZEN_2015]

Labor shortage is a myth created by government in order to justify high number of immigrants they are importing but the reality is that it is very difficult to find jobs in Canada especially for educated and recent university and college graduate. The nation wants a significant cut back in immigration levels and significant more selectivity but the government is deaf to hear and they will pay the price in the next general election.

[CdnFox]

3 minutes ago, CITIZEN_2015 said:

Labor shortage is a myth created by government in order to justify high number of immigrants they are importing but the reality is that it is very difficult to find jobs in Canada especially for educated and recent university and college graduate. The nation wants a significant cut back in immigration levels and significant more selectivity but the government is deaf to hear and they will pay the price in the next general election.

True. 

We will hear some serious squealing from some sources in business and moreso in education etc.  but aside from a small amount of short term pain in the long run it will help.  Reduce immigration to sustainable levels based on our creation of homes and infrastructure and use even better targeting and filtering.  That will have a huge impact on the cost of rents and housing, food and inflation, and reduce strain on medical and educational facilities. 

[impartialobserver]

the labor shortage in the US that came during and after Covid 19 was deceptive. In the most general and absolute terms.. no there was no shortage. However, in certain industries and cities the number of applicants was well below that of the stated need. The most publicized was fast food and limited service (Denny's or Chilis) restaurants in mid to large cities. Were all industries affected? no. Mining and high end manufacturing (anything but food) were not struggling to find folks. I can understand why someone would try their best to move on from fast food and limited restaurants. A lot of not so great customers, relatively low pay (in comparison to others) and frequently not the most family friendly hours.