In today’s fast-changing world, having talented people is super important for a country’s success. Well, Canada is a place where lots of smart and skilled folks gather.

Canada’s got a diverse group of workers, top-notch schools, and rules that help it get the best people. This makes it a top choice for HR professionals and businesses. We’re going to look at some facts and numbers that show how Canada’s talent scene works. From its growing tech scene to its skilled workers in different jobs, Canada is the place where people from all over the world come to work and bring new ideas.

Workforce dynamics

Canada has a highly educated and skilled workforce, with a strong emphasis on STEM (Science, Technology, Engineering, and Mathematics) fields. Canada has a welcoming immigration policy, which contributes to a diverse and skilled workforce. Thus, the labor force is diverse, with a mix of both Canadian-born and immigrant workers, contributing to a rich talent pool. The workforce is generally well-educated, and the country offers various training and development programs to upskill employees.

Canada’s labor force participation rate was approximately 65.2% as of 2020. Immigrants make up a significant portion of the workforce, almost one fourth, with approximately 23.1% of the population being foreign-born in 2019. Especifically, Express Entry is a popular immigration system that prioritizes candidates with high skills and education levels. This system selects skilled immigrants based on a Comprehensive Ranking System (CRS) score. In 2021, Canada invited 114,431 candidates through this system, whereas in 2022, they issued 46,539 invitations, which is a 59% decrease from the previous year. However, Canada aims to admit over 1.2 million immigrants between 2021 and 2023.

Talent education

Canada has a robust education system with world-renowned universities and colleges. It prioritizes research and innovation, producing a steady stream of talent in various fields. The IMD ranks Canada 8th in the world in terms of the competitiveness of its workforce. This is due to the fact that the labor pool here is highly skilled and educated, yet more economical than in the US.

The country’s immigration policies also attract international students, further enriching the talent pool. It consistently ranks among the top countries for the quality of its education system, according to the OECD. And, Canada is home to over 96 universities and more than 150 colleges. So, the country consistently sits near the top of the charts when it comes to its citizens’ attainments; 63% of Canadian residents aged 25 to 34 have completed degrees or certificates, making it one of the countries with the highest percentage of nationals with post-secondary education.

From another perspective, Canada’s gross domestic expenditures on research and development for 2021 indicate that spending declined 1.4% to $40.1 billion. This decrease was driven by an 8.7% reduction in funding by the federal government, which follows a slight increase of 0.7% in 2020, which was also mainly attributed to the federal government. 

Key business trends

Economic growth

Canada’s economy is resilient, characterized by a mix of industries including natural resources, manufacturing, and services. In fact, economic growth is influenced by global factors, such as trade agreements and commodity prices. According to the latest World Bank annual ratings, it ranks 23rd out of 190 economies for ease of doing business. It is one of the most attractive OECD countries for highly qualified workers and comes out as the most attractive OECD country for entrepreneurs. Plus, the government often introduces economic stimulus measures to support growth during economic downturns.

The International Institute for Management Development (IMD) ranks Canada 14th globally for its overall economic competitiveness, and the country’s growth rate ranged from 1%-3% in the decade leading up to 2020. Unemployment rates are low and minimum wages are rising. A combination that tends to result in high levels of disposable income. Trade freedoms, low corporate taxes and a stable political environment make it a secure and reliable economy.

Regarding GDP, Canada’s was approximately $1.64 trillion in 2020, making it the world’s ninth-largest economy. The country experienced a recession in 2020 due to the COVID-19 pandemic, with a GDP decline of 5.4%, but rebounded with 5.6% growth in 2021.

Exports play a crucial role in the economy, accounting for about 30% of GDP. In 2021, Canada’s annual exports reached a record $637 billion, exceeding the previous record set in 2019 by 7.0%.

Incentives for foreign investors & entrepreneurs

Canada is known for its political stability, strong legal framework, and transparent business environment, which are attractive to foreign investors seeking security and predictability. Hence, Canada offers various incentives to attract foreign investors and entrepreneurs. These programs are designed to stimulate economic growth, innovation, and job creation. Such as the Start-Up Visa Program:

Another program is the Provincial Nominee Programs (PNPs), which allow provinces to nominate individuals for immigration based on their investment or business plans. They have welcomed thousands of investors and entrepreneurs, with specific criteria varying by province. And many provinces in Canada have PNPs that allow them to nominate foreign entrepreneurs and investors for permanent residency.

Regarding tax incentives and tax benefits, Canada offers the following:

Summary

In conclusion, Canada presents a robust business landscape characterized by a convergence of emerging trends and established proficiency. In fact, it boasts a diverse and skilled workforce nurtured by an exceptional education system, underpinned by a strong focus on sustainability and innovation.

Digital transformation, sustainability initiatives, and technological advancements are reshaping the Canadian business landscape, while remote work and e-commerce continue to redefine traditional paradigms. These trends, coupled with Canada’s stable environment, create an environment ripe for investment and entrepreneurial endeavors.

Moreover, Canada’s incentives and tax benefits for foreign investors and entrepreneurs, including the Startup Visa Program and investment tax credits, underscore its commitment to fostering economic growth and innovation. This combination of talent, trends, and incentives indeed positions Canada as a premier destination for those seeking business opportunities in a forward-thinking and diverse environment.

In summary, Canada’s thriving business ecosystem embodies a harmonious blend of innovation and proficiency, offering a wealth of prospects for HR professionals, investors, and individuals aspiring to be part of a dynamic and inclusive business community.

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