The Canadian Government needs more immigrants to improve the economy

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The Canadian Government needs more immigrants to improve the economy as Canada faces an aging population, a new report suggests that the country needs to increase immigration to balance the demographic. According to the report, the working-age population would have to grow by 2.2% annually through 2040 to maintain the same old-age dependency ratio as in 2022. To return to the average ratio between 1990 and 2015, the same group would have to grow by 4.5% each year. 

While the potential increase in immigration levels has sparked debate over whether the country can handle more newcomers, proponents argue that the labor market can absorb more workers and more working-age Canadians are needed to support the tax base. Last year, Canada’s population grew by over one million people, the fastest rate since 1957.

With one million vacant jobs across the country, the country is experiencing a labor shortage, and that’s why immigration objectives are increasing. Canada has one of the oldest populations in the world, and its low birth rate leads to a labor shortage.

According to Statistics Canada, the nation’s birth rate dropped to a record low of 1.4 children per woman in 2020. This would have to rise to 2.1 in order to maintain Canada’s population without immigration.


Immigrants Contributing to Canada’s Economy

The economy of Canada is boosted by immigrants. According to Statistics Canada, immigrants play a significant role in all sectors of the Canadian economy. The number of people working (sometimes referred to as the labor force) and paying taxes to support public services, such as health care, is one indicator of how strong the Canadian economy is.

The labor force in Canada is expanding annually due to immigration. While funding for public services is essential, embracing immigrants can aid employers in filling open positions with skilled candidates. This is a result of Canadians living longer lives and having fewer kids. Fewer people are enrolling in schools, and more individuals are retiring. As a result, there aren’t many current and future workers who were born in Canada.

Not only do immigrants fill labor shortages and pay taxes, but they also spend money on goods, housing, and transportation, which helps the Canadian economy.

Canada’s Immigration Levels Plan 2023-2025

According to the Canadian government’s immigration levels plan for 2023–2025, 1.45 million new permanent residents from all immigration categories are expected to arrive in Canada over the next three years. According to the government’s immigration goals, Canada will accept permanent residents through a number of programs. Canada plans to bring in 465,000, 485,000, and 500,000 additional permanent residents between 2023 and 2025. Canada welcomed 405,000 permanent residents in 2021. 431,645 people moved to Canada permanently in 2022. The following table displays Canada’s immigration plans for each immigration group between 2023 – 2025:

Immigration Class202320242025

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