Uncommons with Nate Erskine-Smith

Economics of Canadian Immigration: Part 1 with Mikal Skuterud

Nov 1, 2024
In this discussion, Mikal Skuterud, a University of Waterloo professor and seasoned consultant on Canadian immigration economics, shares his keen insights. He critiques the government's handling of temporary foreign workers and the implications of recent shifts in immigration policy. Skuterud emphasizes the importance of balancing temporary and permanent immigration to avoid economic pitfalls. He also highlights how current policies may exacerbate labor shortages and public service strains, calling for clearer, coherent immigration strategies to enhance Canada’s economic resilience.
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INSIGHT

Economic Growth and Capital

  • Economic growth is about GDP per capita growth, not just overall GDP increase.
  • Canada has an investment problem; focusing on labor without addressing underinvestment dilutes capital stock.
INSIGHT

PSW Impact and Social Welfare

  • While increasing low-skilled immigrants might benefit the existing population, it raises inequality.
  • Canada's model integrates immigrants as citizens, making a guest worker approach less suitable.
ADVICE

Immigration Policy Objectives

  • Define clear objectives for immigration policy and use quantifiable metrics for success.
  • GDP per capita growth allows flexibility for redistribution and correlates strongly with welfare.
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