The Canadian Economy

The Canadian economy is one of the strongest and varied in the world. It is one of the top ten global industrial powers, a member of the Group of 8 (G8) and an active participant in NAFTA – the North American Free Trade Agreement. The majority of Canada’s exports are to its powerful neighbor the United States. The agreement is reciprocal in that the majority of Canada’s imports come from the U.S. Canada’s economic growth has been extremely strong as has its position in the currency markets. Overall, the country has shown strong economic growth and the dollar has performed well.

Telecommunications, banking, finance, aerospace and energy companies dominate Canada’s Forbes Top 40 list of the country’s largest businesses. The largest financial and banking institutions include the Royal Bank of Canada, Manulife Financial and the Bank of Nova Scotia, whilst the telecom giants are Telus, BCE and Nortel Networks. Canada’s aerospace information and communications industry is also one of the most important in the world with the aerospace and defense company, Bombardier leading the field.

Many of the largest Canadian industries like Barrick Gold, Imperial Oil, EnCana and Petro-Canada operate in the fields of natural resources; Canada has an abundance of oil, gas and forests as well as providing rich resources for mining (gold, coal, iron ore and copper), fishing and farming. In terms of the geographic spread of Canada’s natural assets, British Columbia has the monopoly on forests and jobs and industries associated with this resource like the massive pulp and paper industry. Alberta, Newfoundland and Labrador are renowned on the labor market for their abundance of work in the oil industry and work relating to the fisheries can be found in the provinces bordering the Atlantic Ocean.  Mining is important to the towns and cities of Northern Ontario, most of which are dependent on mining as a source of work and income; indeed, Canada is a global leader for diamonds, gold, nickel, lead and uranium. The outlook for those linked to employment in these industries is good; large, new deposits are continually being found and much of the territory in the far north is till unexplored.

The agricultural industry is thriving thanks to Canada’s reputation, as one of the leading global suppliers in particular for wheat and grains. Most agricultural exports are to the USA, East Asia and Europe and the sector receives substantial subsidies from the Canadian government.

Jobs in manufacturing have been steadily decreasing over the last 10 years; however, this has been offset by continued increases of jobs in the services sector particularly in the fields of education, healthcare and social assistance, information, culture and recreation as well as professional, scientific and technical services. Nevertheless, central Canada is still reliant on many of the Japanese and American automobile giants as well as the indigenous manufacturers of parts like Linamar and Magna and actually produces a higher number of vehicles per annum than Michigan state in the US often dubbed as ‘the heart of the American automobile industry.’ The US manufacturing industry is well rooted in Canada because of the comparatively lower labor costs compounded with a highly educated population. The country’s national health care system also makes business in Canada attractive because it means that employers are free from the costly health insurance benefits they must provide in the USA.


Skill Shortages

There is a shortage of skills in Canada, which has led the Canadian government to view foreign graduates and skilled workers as an important addition to the Canadian labor market. Skill shortages are particularly prominent in research and engineering, science and IT. The Canadian government has drawn up a list of 38 occupations where skill shortages exist and have introduced the Skilled Worker visa to admit those applicants who are under 49 and possess the qualifications and experience in one of these key areas. Click here to view the list of 38 Key Occupations.


Working practices and customs

Most employees are required to work an average of 35 to 40 hours each week with around 11 statutory holidays per year although this varies from province to province because each tends to have its own “local” celebrations. Outside of Christmas, New Year and Easter the following national holidays are important: Victoria Day (Monday before 25 May), Canada Day (1 July), Labor Day (first Monday in September) and Thanksgiving Day (second Monday of October).

Immigrants from European countries should note that annual paid leave entitlement is by no means as generous as it may have been back home, although most Canadians manage to fit in a summer vacation between June and August.


Language requirements

Canada is one of the few countries in the world, which classes itself as bilingual. Whilst English and French are the recognized languages, their usage really depends on the location you choose to live in. Officially, New Brunswick is the only bilingual province; French is the national language of Québec and it is virtually impossible to get by there without it. The other provinces recognize English as the official language. To accommodate all of these differences, the Canadian government translates all of its websites and documents into both languages.


Unemployment

The current rate of employment in Canada is 8.6% according to official figures from Statistics Canada. The global recession has taken its toll on the Canadian labor market particularly amongst young workers in the 15-24 age groups. Quebec and Saskatchewan have been the worst provinces affected most recently, although the latter still has one of the lowest unemployment rates in Canada. Across the provinces, Alberta’s unemployment is low at only 3.6%, whereas Labrador and Newfoundland experience rates in excess of 15%.