Canada’s annual budget, tabled by Finance Minister Chrystia Freeland, provides insights into the upcoming fiscal year’s spending priorities, influencing various aspects of life in Canada, including immigration policies.
This year’s budget, featuring $53 billion in new spending, primarily focuses on addressing housing affordability, defense, and enhancing productivity in the labor force. While immigration spending wasn’t a central component, several measures indirectly affect newcomers to Canada, particularly in housing and workforce integration.
Housing Affordability: With a significant emphasis on addressing housing affordability, measures such as the Renters Bill of Rights and increased funding for the Apartment Construction Loan Program aim to alleviate housing challenges, benefiting newcomers as well as Canadian residents.
Alignment with Immigration: Budget 2024 aligns immigration policies with housing initiatives, incorporating temporary resident targets for the first time in the Immigration Levels Plan 2025-2027. By expecting a reduction of up to 600,000 temporary residents over three years, the government aims to ease pressure on housing availability.
Foreign Credential Recognition: Continuing efforts to streamline the integration of skilled immigrants into the workforce, the budget allocates $50 million to the Foreign Credential Recognition Program. Half of this funding supports residential construction, aiding skilled trades workers in obtaining necessary credentials, while the other half targets the healthcare sector to remove barriers to foreign credential recognition.
Economic Impact of Immigration: The budget acknowledges the contribution of immigration to Canada’s economy, noting that while newcomers initially earn less than average Canadians, they narrow the income gap over time. Over a ten-year period, newcomers surpass the median Canadian income by 10%, reflecting their positive long-term economic impact.
Through housing initiatives, workforce integration, and recognition of foreign credentials, Budget 2024 underscores the government’s commitment to supporting newcomers and fostering their economic integration into Canadian society.