Nick Noorani Website

The Incredible Shrinking Continent

Europe is on track to lose 52 million workers between now and 2050—unless it begins embracing immigrants fast.

You’d never guess it from the rants of America’s talk-radio Jeremiahs, but U.S. immigration policy isn’t really a disaster. In fact, Europe has recently begun studying it enviously—or was studying it anyway. Then the recession struck. Now it’s open season on foreigners across much of the continent. Italy’s interior minister, a member of the xenophobic Northern League, has sent armed carabinieri to clear out camps of jobless migrants in Naples and other parts of the south. In Britain, Tory leader David Cameron recently promised that if his party wins upcoming elections he’ll slash immigration by 75 percent—and that’s on top of the visa quotas imposed last year by the current Labour government. Ahead of key regional elections in France, President Nicolas Sarkozy has launched a noisy debate about “French identity.” Switzerland has outlawed minarets, and France, not to be outdone, is considering a ban on burqas.

As bad as the surge of intolerance is for the foreigners who are its targets, it’s a disaster for Europe. The continent is heading for serious long-term economic trouble unless it learns to manage immigration intelligently. Deaths are expected to outnumber births this year in 10 of the European Union’s 27 member states. As of 2015 the EU as a whole will experience negative natural population growth, demographers say, and the gap will grow to 1 million excess deaths a year by 2035. By 2050 the EU will have 52 million fewer people of working age, the European Commission warns. Businesses across Europe are already facing severe shortages of engineers, technicians, craftspeople, and other skilled professionals, with 4 million unfilled jobs across the continent. “Every one of our clients in Europe has positions they can’t fill because of continentwide shortages,” says Barbara Beck, European head of the employment service Manpower. And the problem will only worsen as the job market recovers.

The trouble isn’t a shortage of immigrants. The European Union has attracted 26 million migrants in the past two decades—a full 30 percent more than America’s 20 million over the same span. But most European countries tried to protect homegrown labor by shutting out foreign workers. The efforts mostly backfired, encouraging a massive influx of illegal aliens, who tend to accept rock-bottom wages and benefits because they have no legal recourse. At the same time, Europe’s generous social benefits encouraged a massive surge of “welfare tourism.” As a result, Europe has ended up with 85 percent of all unskilled migrants to the developed countries but only 5 percent of the highly skilled. Compare that with the United States, which has honed its innovative edge by attracting 55 percent of the world’s educated migrants. And because immigration happens largely via networks, with established immigrants paving the way for their peers, such trends tend to endure. “It therefore takes decades to turn immigration policy around,” says Thomas Liebig, a migration specialist at the Organization for Economic Cooperation and Development (OECD).

For decades most European countries have consigned immigrants to the margins: in Germany, some professions were restricted to German citizens well into the 1990s, while eligibility for citizenship itself was based on bloodlines until a landmark reform in 2001. Millions of refugees were legally barred from working, which forced them into squalid welfare dependency. Muslims especially remain unintegrated and ghettoized in many European countries, including France, Britain, and the Netherlands. Now many European countries have tabled important policy reforms such as the drafting of a continentwide asylum policy and the formulation of smarter immigration criteria based on education and skills. Others, like Spain and the Czech Re-public, are actually paying migrants to go away. The danger is that Europe’s worsening hostility toward foreigners will halt or even reverse efforts to assimilate those who are already there, spawning a fast–growing, permanent underclass. According to the OECD, immigrants have been losing jobs at almost twice the rate of native-born citizens during the current crisis, and in many countries the socioeconomic gap between immigrants and natives has begun to grow again.

All this comes at a critical moment for the global economy. Economists predict that global GDP will double in the next 20 years, and as many as 1 billion new, skilled jobs will be created. To avoid being left behind, Europe will need to upgrade its workforce to compete in knowledge-intensive sectors. It can’t afford to neglect the education of its immigrant populations or to give up competing for its share of the global talent pool. If it makes the wrong choice, Europe will become smaller, poorer, and angrier. Instead of attracting newcomers, the continent will watch its own best and brightest decamp for better opportunities in the growing economies of China, India, and Brazil. (The economic booms in Poland and Romania have already been slowed by a severe dearth of skilled workers.)

As Europe fiddles, some countries aren’t standing still. At the onset of the global crisis, the Canadian government briefly considered slashing immigration quotas to protect its labor market. It then decided to keep its borders open and even to speed up acceptance procedures for some highly skilled arrivals. While migrants have lost some ground recently, they’re still twice as likely as native Canadians to hold doctorates or master’s degrees. Even within Europe, there are a few countries doing it right. Sweden wasn’t satisfied with merely implementing a new, skills-based immigration policy; it actually upgraded its integration efforts, including language and vocational training for existing immigrants, right in the middle of the crisis. But much more can be done to attract skilled migrants—raising the number of visas available in professions where shortages already exist, for example, or cutting the red tape that can make it all but impossible to get non–European diplomas recognized. Nations and companies could also do a much better job of recruiting more of the -estimated 1.4 million foreign students currently enrolled at European universities.

Europeans’ concerns aren’t totally misplaced. The rapid pace of immigration over the past decade has strained Britain’s infrastructure and social institutions. Germans and the French are particularly worried about the underclass immigrants who have isolated themselves from society at large. But now the continent is facing a pivotal decision. Closing its borders will only divert more migration into illegal and uncontrollable channels. Europe is no defendable, homogenous island; it’s surrounded by the wildly growing populations of Africa and the Middle East. Europe’s choice is not whether to stop migration, but whether to channel it to its own advantage.

© 2010

PLUS ça change. Vancouver is still the most liveable city in the world, according to the latest annual index compiled by the Economist Intelligence Unit (EIU). The Canadian city, which is currently gearing up to host the Winter Olympics, gets 98 points out of 100, the same as last year.

The ranking scores each city from 0-100 on 30 factors spread across five areas: stability, health care, culture and environment, education, and infrastructure. These numbers are then weighted and combined to produce an overall figure.

There are no great changes at the top of the ranking. Vienna, Melbourne and Toronto still occupy second, third and fourth positions behind Vancouver, and the top ten is still dominated by Canadian and Australian cities, which benefit in particular from perfect scores for health care and education.

These rankings are used by employers assigning hardship allowances as part of expatriate relocation packages. So you might be surprised by the position of a city such as Detroit, whose image has been rather battered in recent years. Yet in 40th place, it is considered a more liveable city than both London and New York in 54th and 56th positions. These two cities, which TimeOut ranks as the two “greatest” in the world , are tripped up by their “stability” scores. “Stability” reflects residents’ fear of terror, crime and conflict, and in this respect no city in the top 50 gets within ten points of New York’s score of 70.

Liveability ranking, 2010: 1 Vancouver 98; 2 Vienna 97.9; 3 Melbourne 97.5; 4 Toronto 97.2; 5 Calgary 96.6; 6 Helsinki 96.2; 7 Sydney 96.1; 8= Perth 95.9; 8= Adelaide 95.9; 10 Auckland 95.7

The provincial government has changed immigration rules to allow residents to sponsor family members to move to the province from outside of Canada.

The changes to the Provincial Nominee Program are targeted to attract skilled workers and entrepreneurs to the province.

“The immediate family members of permanent residents should be afforded an opportunity to be successful in New Brunswick,” said Business New Brunswick Minister Victor Boudreau, who is also responsible for the Population Growth Secretariat.

“This program change encourages retention by attracting newcomers with a genuine desire to stay in New Brunswick. Ultimately, we want our staff processing applications from individuals who are sincere about establishing businesses in our province.”

Under the program’s existing categories, nominees must have a job offer or a business plan. The changes will create a new category for skilled workers who already have family within New Brunswick.

Boudreau said residents will be able to help skilled family members find jobs and integrate into the province.

“Anyone looking for a job can tell you that the process often takes time and requires face-to-face contact with potential employers,” he said.

“The process is even more difficult for those who live abroad.”

In 2008, almost 2,000 immigrants arrived in New Brunswick through the program. The Population Growth Secretariat has a government mandate to attract 5,000 immigrants by 2015 and to significantly increase the retention rate once they arrive.

Lorraine LeClair, the executive director of the Multicultural Association of the Greater Moncton Area, said the new categories will make the program more effective for both the province and new immigrants.

“I think it’s going to be a good initiative for New Brunswick,” she said. “It’s also going to be a great thing for our newcomers so that they’ll be able to keep their families together and have an opportunity to bring more folks to New Brunswick.”

LeClair said that should help New Brunswick meet its population growth goals, as well as provide benefits to immigrants.

“It shows that there are roots that are going to be built here,” she said. “It keeps that family unit as a whole and it shows that we’re a welcoming community, not just for the bottom line, but for a healthier, overall family environment.”

Entrepreneurial immigrants looking to set up a business in New Brunswick must now submit a deposit, which will be refunded if they establish a business within two years of arriving in the province and it stays in operation for at least one year.

Manitoba, Saskatchewan, British Columbia, Newfoundland and Labrador and Prince Edward Island also have similar programs that require a refundable deposit.

Financial details about the Provincial Nominee Program released last week show the government corporation that administered the PNP brought in over $295 million in gross earnings for the 2008-2009 fiscal year.
That’s more than double the amount earned the year before.
Island Investment Development Inc. (IIDI)’s 2008-2009 annual report was released Thursday, and it reveals the details about government’s gains from the controversial PNP.
The Provincial Nominee Program offered expedited Canadian visas to immigrants who invested $200,000 on P.E.I., some of which went into an Island company. It was established to encourage immigration to the province.
The province ramped it up in 2008 and pushed through as many PNP applications as it could after the federal government announced it was changing its rules to disallow the way P.E.I. was investing its immigrant monies. Over 1,800 applications were processed between April and Sept. 2, 2008. That is more than double the total amount processed in all of 2007.
It was a profitable move for IIDI. Revenue doubled for the corporation in numerous areas due to multi-millions charged in PNP processing fees.
The Crown corporation made over $5 million in business processing fees compared with $780,000 the year before. The businesses in turn received about $55,000 per PNP investment, known as a unit.
Over $3.4 million in fees was also collected for PNP interviews conducted in the summer of 2008 when IIDI sent teams of employees to Hong Kong and Dubai to conduct PNP interviews. Previously, immigrants were required to travel to P.E.I. for these interviews, but obtaining a travel visa was a lengthy process and P.E.I. was trying nominate as many immigrants as possible before its Sept. 2 deadline.
So IIDI charged the immigrants $2,500 each for these overseas interviews — and made over $3 million in doing so.
Profits were also made from defaults on the $25,000 good faith and $20,000 language deposits charged to immigrants in addition to their PNP investments. These deposits were supposed to be returned to the immigrants after a year if they met certain requirements.
For the good faith deposits, newcomers had to prove they had lived in P.E.I. for one year. Language deposits were charged to those who could not speak English and were promised back if the immigrants passed certain language requirements within a year of landing on the Island. A number of immigrants apparently did not meet those requirements last year. IIDI took in over $4.6 million in default PNP deposits.
But revenues were not the only numbers that went up in 2008-2009 at IIDI.
Expenses also went up. Employees got a salary boost of 80 per cent over the previous year and office expenses went up $224,000. Consulting fees were over $371,000 compared with $38,000 in the 2007-2008 fiscal year. The IIDI travel budget was also boosted to a whopping $490,000 compared to $55,000 the year before.
Innovation Minister Allan Campbell was not available for comment Friday, but will sit down for an interview with The Guardian this week to discuss the details of this report.

Skilled immigrants often focus on improving technical skills after coming to Canada, and they are shocked when they are told they have “no Canadian experience.” I’ve realized that this albatross around immigrants’ necks is actually a vague way of saying: “You lack the soft skills I am looking for in an employee.”

I believe there are nine soft skills that no immigrant should be without:

1. Communication skills
Communication skills — both spoken and written — are critical for immigrants. I can’t stress enough how important it is for career success to be able to not only speak in English, but also write clearly and persuasively.

2. Local language skills
I still smile when I think back to my first job in Canada when I was asked to put my “John Hancock” on a courier document. As I looked at the courier, he said to me, “I mean your signature.” In a corporate environment, your language skills have to evolve to understand local phrases and business jargon.

3. Presentation skills
In a recent survey, senior managers rated the ability to make presentations as a top qualification. Now this could mean a formal presentation to clients or a more casual way of presenting yourself in meetings and with colleagues.

4. Small talk
Do you sense a theme here? Most of the soft skills I’ve mentioned so far all relate back to communicating. Water cooler chitchat is a part of corporate life. But be careful not to cross the line of what’s taboo.

5. Leadership and initiative
Staying invisible is why many immigrants are overlooked when it comes time for promotions. Take some initiative, share your ideas, ask questions and encourage others to collaborate as well!

6. Conflict resolution and negotiation
It is important to learn how to disagree with a colleague or even your boss without getting emotional about it! And if things go too far, learn to apologize.

7. Accepting constructive criticism
Constructive criticism is part of any learning curve. To accept criticism, understand that we are not perfect and learning is a continuous process, at work and in life.

8. Flexibility
Show your employer that you’re willing to learn and adapt. The labour market and economy are changing all the time, and we must change, too.

9. Business etiquette
Workplace customs and practices may be different in Canada than your homeland. Something as simple as calling your boss by his or her first name may seem odd to you, but it’s normal practice here.

There are many more soft skills, of course, but these nine are the ones that tend to get lost in translation. So let’s start reviewing these in more depth over the next few months and see where it takes us!

In a move that may be designed to take advantage of Australia’s and Britain’s recent problems in the Indian-student market, Quebec is offering Canadian citizenship to international students who graduate from any university in the province.

The province’s premier, Jean Charest, who is leading a delegation of university heads on a visit to India, told students and experts at the University of Mumbai on Monday that, beginning on February 14th, international students who graduate from universities in Quebec would get “a certificate of selection” that would put them on a fast track to Canadian citizenship.

According to The Times of India, Charest told the packed house that, “Any student who secures a bachelor’s, master’s, or doctoral degree from any university in Quebec will obtain a certificate of selection to become a citizen of Canada.” Mr. Charest said that once foreign students had the certificate, the federal government would then carry out security and health checks before awarding citizenship.

The premier’s announcement may encourage Indian students to think about Canada, especially in the wake of recent issues in two popular countries of study. In Australia, racial violence against Indian students has increased, and the sudden closure of four colleges left thousands of Indian students without credentials, while in the U.K., a report over the weekend revealed that British authorities had temporarily suspended all student-visa applications from northern India, Nepal, and Bangladesh. According to the British Broadcasting Corporation, British officials feel the system has been overwhelmed and there are concerns that many cases are not genuine.

The move by Quebec reflects a broader national interest in focusing on India. Canadian universities appear to be showing an increased interest in strategic engagement with India, and Quebec universities, like their counterparts in other provinces, already have a number of partnerships with Indian institutions.

A pilot project run by Canadian immigration authorities and community colleges to speed up applications from India has doubled the acceptance rate, according to a report released by the government in late January. It showed that processing visas took an average of about two and a half weeks. The program is designed to uncover any fraud with a variety of checks, including a requirement that applicants provide verifiable documentation and a feedback mechanism in which colleges report back on whether students show up.

Additionally, the Association of Universities and Colleges of Canada (AUCC) recently published a guidebook designed to assist universities and colleges in identifying good practices for recruiting international students in India.