Flattening Payrolls in UK and Canada Amid Immigration Focus
According to Vice President JD Vance, payroll growth in both the UK and Canada has stagnated, despite government efforts to attract millions of diverse immigrants to stimulate economic growth. On Friday, he expressed his thoughts on social media.
“I think the reasons behind this are quite complicated. However, it’s clear that Canada, in particular, embodies the mentality of ‘diversity is our strength’—more so than perhaps any other country,” Vance remarked.
He indicated that Canada has the highest percentage of foreign-born individuals in the G7. He also suggested that this influx may have led to stagnant living standards, attributing the issue to the leadership decisions made by elected officials.
In his remarks, Vance presented a graph illustrating the decline in economic output per person in Canada and the UK since 2016, especially when compared to the growth experienced in the United States.
Recent data has shown that Canadian household consumption has stagnated since early 2022. Moreover, residents in the UK have faced a notable decrease in their living standards since late 2021, with reports indicating a 2.2% decline in real disposable income during the 2022/23 financial year—the most significant drop in living standards since at least 1956.
Despite rising wealth in the United States, wages have remained stagnant under the Biden administration. The administration’s approach to immigration has brought in far fewer newcomers per capita compared to Canada.
Over the past year, Vance has consistently argued that American workers would gain more from investments in high-tech industries rather than an influx of low-wage immigrants. He pointed out that average take-home pay for workers has decreased under the current administration compared to the previous one, suggesting that economic performance is better linked to lower immigration.
“When the Biden administration increased immigration, ordinary Americans lost about $3,000 in their take-home pay,” he stated. “In contrast, during the first ten months under Trump, take-home pay actually rose by $1,200 when adjusted for inflation. That’s significant.” Vance further contended that the influx of immigrants has forced many Americans out of their homes.
He advocates for a shift towards promoting automation over immigration for economic growth, claiming that investing more in robotics would raise wages and improve living conditions for everyone. “Robotics and technology can actually uplift wages,” he noted.
Vance’s critique of Canada’s economic approach also implicitly targets President Biden’s immigration policies. He pointed out shortcomings in the U.S. visa system and emphasized the need for a more responsive framework that takes market needs into account.
In closing, Vance highlighted that the decline in living standards in Canada should not be blamed on external factors like Donald Trump but rather seen as an internal issue tied to current political leadership.
