The direction of economic winds can change in an instant.
As we’ve seen, all it takes is one pandemic to drastically shift the efforts of governments and societies alike. And when times change, so do the needs of the public. It’s as simple as that.
As for the economy concerning Canada, there is one specific pillar that’s important to growth.
Immigration. Considering the low birth rate that Canada already experiences, newcomers have been relied upon for economic growth. Without new citizens, that growth becomes difficult.
And in past times, immigrants have found it difficult to acquire jobs, which directly affects housing affordability. If they can’t find quality positions, they won’t be able to afford a house!
This could present potential problems. That’s what we’re talking about today.
Job Availability
Recently, there has been an increase in job availability.
With the retirement of baby boomers and the global pandemic, more jobs have opened. This is great for potential newcomers who are looking for roles to fill and dreams to achieve.
Think about it.
With a low birth rate and a high demand for labor, it’s imperative that more immigrants are allowed into the country. The department of immigration has said that they will target the admission of around 1 million new permanent residents over the next few years.
But that creates another issue.
Where will these new residents live? Will housing need to be built? Will the newcomers be able to afford that additional housing? Can it accommodate the influx?
They’re good questions that need answers.
Housing Cost
As of recently, housing costs have been on the rise.
With little available housing for current (and future) Canadian immigrants, that presents a major issue. Permanent residents with no place to live will nullify the beneficial effect the new citizens were supposed to have on the economy.
It’s basically the same thing as multiplying one by zero.
If housing is too expensive, the immigrants may go elsewhere which will bring Canada back to the original issue of not having anyone to fill the increase of available jobs.
The Solution
Canada essentially needs two things.
More housing paired with affordability. If those two necessities are not present, it’s back to square one as I previously mentioned. Without this housing, population growth may come to a halt which will then make the labor crises even worse.
Specifically, housing should be able to accommodate families because the children of those families will eventually fill more jobs in the future, acting as a catalyst for the solution to the labor crises.
It’s important to think about the long-term future when attempting to solve these pressing issues. The government must step in.
Final Thoughts
For the issue of affordable housing to be solved, many things need to work together.
If the governments and departments can achieve a balance on the amount of affordable housing that is created, for the specific number of people that come into the country, all may be well. There’s no way to tell until that happens, but with the forward-progressing economy coming out of a major pandemic, things are looking better.