Canada’s Immigrants, Welcome but Unemployed

by admin on August 31, 2010

For years, Canada has been attracting immigrants as the safer, more cultured, and hospitable neighbor of the United States. Just in the last decade, hundreds of thousands have left their home countries and settled in Canada in search for real democracy, greater respect of human rights and better living conditions. And while Canada has lived up to its image with regards to the first two of these promises, it has failed to provide the goods on the third one, turning the dreams for prosperity of many immigrants into a constant struggle to put bread on the table. 

When I recently talked to an acquaintance of mine, Vasil Rodolyuboff, an immigrant from Eastern Europe, who arrived with his family three years ago and established himself in Montreal, he had this to say on the topic, ‘You know, when I first came to Canada, I really hoped for much better life than the one I had before. I had a university degree in Medicine and for ten years, I worked at a hospital in my hometown. So, I had work experience and thought I would get a job almost immediately. It might not be a job at the high-pay end, but one in my specialty.’  

However, things did not turn his way. ‘I applied here and there,’ he keeps retelling the story of the immigrant, ‘but they all refused to recognize my degree and couldn’t hire me. Finally, I found this job (a luggage handler at the Montreal-Trudeau airport) and I am still there’. When I inquired if Canada has lived up to his expectations, he replied thus, ‘You know, it is not what I expected. I wanted to be a doctor, to help patients and feel rewarded. But what I have now is still better than my life in my home country.’ 

Similar is the story of many newcomers in the country, and you all probably know people like Mr. Rodolyuboff, who arrive in Canada well-educated and full of professional ambitions but settle for menial work, if any, and mundane existence. Actually, the results from recent studies on the topic come to confirm that such is the fate of the majority of immigrants with post-secondary degrees. 

For example, a new survey published in Muchmor Magazine has revealed that the unemployment rate among university-trained immigrants is 12.1 percent which is rather steep compared to the 3 percent of unemployed Canadians who hold diplomas from higher education institutions. Furthermore, most of the foreign graduates who work cannot claim to be employed in their field of study due to educational constrains that limit their chances to find work in their field. What’s worse, the introduction of relevant reforms would require the involvement of the professional orders and would thus cost millions of taxpayer dollars. Therefore, the government has been reluctant to make major changes in its policy towards immigrants, a policy which can be summed up with the unofficial slogan ‘Love it or leave it’.  

So, what is it that Mr. Rodolyuboff and the other immigrants will do? It is difficult to speak for all and, actually, quite unfair, but here is his response when I asked him if he felt disillusioned with the present state of affairs: ‘You know what, yes, I am quite disappointed but my kids’ life is here – Canada has become their new fatherland. I just cannot take it away from them.’

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Carbon trading is a very popular cause.  It matches the environmental concern of the left with the market solutions of the right.  Canadians tend to like it because certain types of Americans don’t.  It could be very bad news for Canada both as an exporter and as a consumer.

Many investors are treating Canada as an emerging oil superpower.  Although Canadian reserves are in expensive tar sands they are massive.  They are also secure compared to much of the rest of the world, being across a very secure land border over which there has not been a war since 1812 (strictly speaking the 1812 war did not involve the Western part of Canada where most of the oil is, but let’s not worry too much about that).  This we are told is a great thing which can only mean prosperity for Canada.

And we agree.  Our quibble is not that lots of oil will leave Canada poorer, but that it has already been priced in through a hundred and one different ways and any readjustment will be a de facto loss of national output as the present adjusts to lower returns in the future.

And this is where carbon trading comes in.  Essentially the idea is to make us consume less energy by making us pay more for it.  This has an obvious effect on energy producers, such as tar sands oil producers.  It is important to realise that not all oil producers are treated equally.  Essentially rising costs will affect more expensive oil producers more than it affects cheaper producers.

This is because like most businesses oil is drilled in order to produce a profit.  If oil costs $8 a barrel to produce as it does in some parts of the Middle East then it will be profitable to produce it when the oil price is $10, $20 or $40 per barrel.  If it costs $35 a barrel to produce then it is profitable at $40 but it stops being profitable if the oil price falls to $30.  Essentially the oil industry will shut down in areas where there are high costs of extraction as it has done in the North Sea off Britain a number of times.

Carbon trading can be seen as a way of either adding costs or lowering the price realised by the buyer.  It doesn’t really matter.  It simply makes marginal oil fields uneconomic.  And many of Canada’s oil fields are marginal.

Canada is not simply a future producer of oil; it also exports the incredibly unfashionable energy source of coal.  Carbon trading is designed to make coal less attractive as an energy source.

Canadians aren’t just big producers of energy; they are also some of the highest per capita consumers of energy as well.  This is not because they are sick of environmentalists but because they live in a big country with long distances and a cold country with high heating bills.  If there are high heating and transport bills this will mean less spending.

Carbon trading may be a necessary measure to combat global warming, but Canada will bear much of the cost.

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