Canada’s Growing Immigration Pressures Drive Unemployment to Highest Level Since 2017

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As the new school year begins at the University of Ottawa, students face a rising challenge—finding jobs. International student Michael Anda has been job-hunting since January, only finding employment by moving to Montreal. He believes a surge in international students is contributing to rising unemployment, a view shared by many economists.

In August, despite adding 22,000 jobs, Canada’s unemployment rate climbed to 6.6%, the highest since 2017, excluding the pandemic. This increase is largely due to an influx of 96,000 newcomers that same month. Economists warn that the job market can’t keep pace with post-COVID immigration levels, especially as youth employment, particularly for those under 25, is double the general rate—the worst in over a decade.

“Those with the lowest seniority in lower-paying jobs are starting to feel the brunt of it,” experts say, highlighting a dramatic shift from just two years ago when unemployment was at its lowest since the 1960s. The economic conditions are a signal that Canada’s economy is slowing.

The Bank of Canada’s interest rate hikes have further pressured businesses to either scale back hiring or lay off staff. As high immigration continues, concerns are growing that the economy is struggling to absorb the influx of workers. Experts predict that this situation might give the Bank of Canada justification for future interest rate cuts, with two more decisions expected before year-end.

With persistent economic challenges, young Canadians and international students like Anda are feeling the pressure, raising questions about Canada’s capacity to balance immigration with sustainable job creation.