Refugees impact on Canada Economy
August 13, 2021, the Government of Canada announced that Canada would take in 20,000
refugees from Afghanistan. Is taking in large numbers of refugees worth the financial cost?
Canadian Government has officially announced taking 20 thousand Afghanistan from the
Refugees stream. Since 1980, the Canadian Government has accepted more than a million
multinational refugees until now. The promised young and highly skilled resources employer
supports the Canadian economy by massively accepting the refugees. Although in the beginning,
the refugees needed accommodations with support from the Government - such as providing
public services, etc., that costs significantly in the short-run, especially with accepting a large
number of refugees; however, instead of being represented as a sunk cost to the economy, the
refugees are paid off in the income tax in the short-run and contributes many more to the national
tax than the expenditure that the Government has supported. By contributing to not only the tax
but also participating in the economic activities spread throughout the countries, the refugees
represent themselves as motivational resources for the long-run development of Canada. The
refugees, although coming with little financial, accommodate and participate with the national
Citizen, are not only for economic growth but also the valuable gain in international relationships
in the future.
The rich source of cheap-price, youth, motivated foreign workers:
The refugees are initially perceived as the promised source for the young - skilled with
cheap price employers. Coming to another country, in this scenario, if the Afghanistan refugees
are accepted to Canada, they have to learn another language, either French or English, then use
their mother tongues for regular communication to efficiently join the new environment. In
addition, the majority of the refugee is shown to be the working age, then, later on, have many
years to work and contribute to the country as a part of joining the new country. Looking further
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Refugees impact on Canada Economy
at the division in the economic contribution, 23% of the refugees earn a middle-class income,
which is the same as the accumulated born at birth Canadian and immigrants. Furthermore, 50%
of the refugees working in highly-skilled occupations, significantly 20% of that require a college
- University degree, such as doctors, engineers, or architects. In addition, only 9% of refugees are
unemployed compared to 6% of the Canadian-born unemployment rate (Refugees in Canada -
United Nations Refugee Agency, n.d.).
Although Canadians have to support to provide support for the refugees at the beginning,
that leads to the consideration of how the Government uses the tax on this issue. Generally, the
purpose of the tax is that the national Citizen pays the money to the Government, and the
expenditure does not represent itself as a choice but the obligation for the Government's use in
supporting programs and services it offers, such as public transportation, education, or
healthcare. (Purpose of Taxes – Learn About Your Taxes, n.d.) However, over time of
contributing to the country, the refugees indeed pay off the tax rather than represents themselves
as a burden or the sunk cost of wasting the money. Usually after, five - years after their arrival,
despite the challenges, either racist discrimination or the lower than average income when they
first come to Canada, however, this changes significantly and therefore highlights from the tax
data-driven in 2014, the comparison between the Canadian percentage ( 27% ) and the total
immigrants ( 24% ) earning the middle-class income can prove that refugees contribute more
income tax than they have been supported by the Government before. In the long run, the gap
between the income tax paid by the refugees and the public benefits narrowed through the
Canadian provinces and areas. (Refugees Are Good For Canada, n.d.).
Motivation for the long-run development.
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Refugees impact on Canada Economy
Refugees, when first come to another country, as mentioned in the second paragraph,
have to resettle themselves in the new environment by either learning a new language or going to
the public school assigned by the Government for individuals that have not completed their high
school diploma. However, the refugee program does not include the education cost for the
refugee, which the individuals who have the desire for further continuing education have to
apply for the study permit - which is legislated by the Government of Canada for the acceptance
to go to either public school or designated institution such as college or University. The federal
and provincial Governments do not assist with non-cost education for the refugees. Therefore
they have to apply for and pay the tuition given by either the Government or the institution.
(Baudoin, 2019) However, the education data-driven in 2016 by the U.N. Refugee Agency (
UNHCFR), the refugee children perform themselves as well as the Canadian-born children with
the comparison in the completion rate of a bachelor's degree or schooling above a bachelor's
level for refugees is 25.5 percent, compared to Canadian-born students, sitting at 18.5 percent
that highlights the critical motivation for the promises growth in the long-run of Canada across
the industries. (Refugees in Canada - United Nations Refugee Agency, n.d.). Ultimately, these
young generations from refugee backgrounds portray themselves as valuable to society's total
future growth.
Canada is an aging country where its regions still need young workers, such as the small
towns and cities, for instance, the North of Nunavut, western Prince Rupert, BC, or Eastern
Fredericton, NB. The main reason for this is the significant ongoing retirement of baby boomers,
who are Canadian born between 1946 and 1965, began from 2011 until now by looking through
the 2021 census. This shows the reality that the Canadian workforce is aging and the population
as a whole through the data given by Statistics Canada. By highlighting the period from 2016 to
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Refugees impact on Canada Economy
2021, the number of Canadian age 65 and older increased 18.3 percent to seven million, which
strongly means the second noticeably increase in 75 years, with the gap of rising more than 20
percent compared to the first increase from 2011 to 2016. (Refugees in Canada - United Nations
Refugee Agency, n.d.) (Zimonjic, 2022).
Canada has received many economic benefits by welcoming the new source of workers -
employers, significantly refugees in this scenario. After the re-accommodating period, such as
getting familiar with the country and the environment that the refugees have to adapt to, they
soon spread to the areas that need more workers or are given more employment opportunities.
This act fulfills the urging need to fill in the demographical gasp in the unbalanced distribution
of the native Canadians in working conditions with the region development by providing the
promised labor force with a low price and a high willingness to work in critical areas. Refugees,
on average, are 11.1 years younger than those born in Canada, with an age of 28.9 in comparison
to 2016. (Refugees in Canada - United Nations Refugee Agency, n.d.).
Furthermore, some refugees contribute to the national economy when they have just
arrived in the country. By receiving support from the Canadian Government, either financially or
the other aspect, 14% of the refugees have become entrepreneurs who create jobs for themselves
and the national Canadian. (Refugees in Canada - United Nations Refugee Agency, n.d.) This act
leads to the balance in the total economic development of Canada in the long run especially.
Therefore, refugees represent themselves not only thriving but also having the talent and skills
that contribute to the development of Canada as a whole in the long run.
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Refugees impact on Canada Economy
Positively boosting the international trading relationship.
The refugees do not readily accept easily with the identification of Canadian citizens
given right on their hands. However, the refugees, categorized as international students or
foreign workers, still have to follow the basic requirements that the Government of Canada
legislates. To become Canadian citizens legally, the refugees initially have to earn for themselves
enough years in terms of working - contributing to Canada, which includes paying income taxes
- this accumulates much more than the supportive services provided at the beginning years by the
Government for public support. After having enough years of contributing to Canada, usually,
three years, which then be converted into the matched points in the criteria given by the
Government of Canada, the refugees have not yet instantly become Canadian that easily. After
contributing enough time, the refugees have to pass the test for the Permanent Citizenship of
Canada (P.R. - Permanent Resident ), which includes the knowledge of Canadian history,
geography, economy, laws, symbols, and levels of Government. By accumulating enough points
required, 89% of refugees eventually become Canadian citizens, passing all the requirements
needed. (Refugees Are Good For Canada, n.d.) - Refugees, although they come from different
cultures with a variety of languages, facing the obstacles such as rational discrimination, have a
belief in Canada and believe Canada represents the ideal place to save not only for their
generation but for their children or the future generation. By passing multiple requirements to be
officially qualified as Canadian citizens, the refugees have more sense of belonging with Canada
- which could be their second homeland.
Canada is known for supporting other countries whenever they are in need, with the
highlighted culture of multicultural, accepting refugees. Although the economic profits should
not be presented as the primary motivator for Canada's commitment to refugee resettlement, it is
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Refugees impact on Canada Economy
crucial to recognize that refugees are indeed the essential source for total economic growth not
only at this moment but father, the globalized trading in the long-run by the followed benefits
they give to Canada. Although at the starting phase, they still need Government assistance in
resettling the new life, which could cause the weighted cost to the total expenditure to the
national economy at that moment; however, the benefits that followed by the potential workers
on their most young with the highest willingness to contribute to the system, the land that saves
them when they were in need. Ultimately, the refugees represent themselves as the promised
sources of the investment process for the long-run aggerate development of the country,
especially shown as valuable with the country that is coming the aging-population such as
Canada.
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Refugees impact on Canada Economy
References
Baudoin, L. (2019, January 23). No, Canada's government does not provide free university
education to Syrian refugees. AFP Fact Check. Retrieved October 15, 2022, from
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vernment-does-not-provide-free-university-education-syrian-refugees
Purpose of taxes – Learn about your taxes. (n.d.). Canada.ca. Retrieved October 15, 2022, from
https://www.canada.ca/en/revenue-agency/services/tax/individuals/educational-programs/purpos
e-taxes.html#lsn-a-prt1
Refugees Are Good For Canada. (n.d.). Innovating Canada. Retrieved October 15, 2022, from
https://www.innovatingcanada.ca/diversity/refugees-are-good-for-canada/#
Refugees in Canada - United Nations Refugee Agency. (n.d.). UNHCR Canada. Retrieved
October 15, 2022, from https://www.unhcr.ca/in-canada/refugees-in-canada/
Refugees pay more income tax than millionaire investor immigrants. (2015, March 8). CBC.
https://www.cbc.ca/news/business/refugees-pay-more-income-tax-than-millionaire-investor-imm
igrants-1.2984982
Singh, R. (2022, June 8). Refugees in Canada – positively contributing to businesses and the
economy. TRIEC. Retrieved October 15, 2022, from
https://triec.ca/refugees-in-canada-positively-contributing-to-businesses-and-the-economy/
Zimonjic, P. (2022, April 27). Canada's working-age population is older than ever, StatsCan says.
CBC.
https://www.cbc.ca/news/politics/canada-working-age-poupulation-census-1.6432398.Insert
References
