Commission on the Reform of Ontario's Public Services

Immigration
Executive Summary
Because Ontario’s population is aging and fertility rates are low, immigrants account for a
rising proportion of population growth; within this decade, all net growth in the working-age
population will come from immigration. This matters because successful immigrants can
contribute substantially towards strong labour-force growth, which in turn enhances Ontario’s
potential economic growth rate. If immigrants cannot use their skills and education, however,
their contribution to the economy cannot be fully tapped. This is happening; economic
outcomes for recent immigrants have deteriorated over the past two decades.
Any profile of immigrants to Ontario presents negatives and positives. Recent immigrants have
fared less well than earlier cohorts in the labour market. Immigrants are better educated than
people born in Canada, but recent immigrants’ earnings are well below those of Canadianborn
citizens and the earnings gap has been growing. Recent immigrants are also more likely
to live in poverty. The number of visible minority immigrants in Ontario is growing and they are
more likely to live in poverty for longer than one year.
A key problem for policy is that many of the critical levers of immigration lie with the federal
government, whose recent policies have worked to Ontario’s disadvantage. It is true that faster
economic growth in other provinces has played a role in luring more immigrants to other parts
of Canada, but changes to federal immigration policy have also reduced the number of
Economic Class immigrants, especially those in the Federal Skilled Worker (FSW) group.
Historically, Ontario has relied on such highly educated immigrants with solid language skills,
who tend to be the most successful, but federal policy has encouraged a shift in Ontario’s mix
towards a higher proportion of Family Class and Refugee immigrants.
It is vital that the provincial government develop — and present to the federal government —
a stronger position based on the province’s best economic and social interests, which would
include a greater provincial say in immigrant selection. Ontario should persist in its efforts to
increase the number of FSW immigrants, as their earnings grow faster than those entering
under the Provincial Nominee Program (PNP). Barring progress on this front, Ontario should
advocate for expansion of its PNP.
Refugees require special attention. They experience much higher rates of unemployment,
part-time employment and temporary employment than do people born here. Refugees and
refugee claimants have complex needs and many need social assistance, a sizable cost for
society and the provincial treasury. Ontario should press the federal government to
compensate the province for these costs.
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