Immigration plays a significant role in bolstering Canada’s population, constituting 23% of the total. It stands as the primary driver of population growth, reaching the highest levels since Confederation and surpassing other G7 nations. Canada is experiencing a gradual decline in its working-age population, which raises concerns. This aging workforce may lead to persistent labor shortages, affecting various sectors of the economy. The importance of immigration to Canada becomes evident in its role in sustaining population levels. Approximately two-thirds of recent immigrants belong to the core working age group (25-54 years old). Introducing these younger individuals helps rejuvenate the population, potentially mitigating the consequences of an aging workforce.Listen to this article.
Need for Higher Immigration Levels
Canada recently declared its intention to maintain immigration levels at around 500,000 newcomers annually in 2025 and 2026. Despite already reaching record-high immigration rates, a Royal Bank of Canada (RBC) report underscores the need for even higher levels. The report emphasizes that Canada’s current immigration rates won’t sufficiently address demographic challenges and labor market demands, given the country’s aging population and low fertility rate.
The demographic and economic challenges faced by Canada highlight the indispensability of immigration. The nation grapples with one of the world’s oldest populations and a low fertility rate, making it imperative to supplement the population with immigrants. Additionally, Canada’s economy, ranked ninth globally by GDP, heavily relies on a workforce facing the same demographic hurdles. As a matter of fact, the report suggests that the current immigration target of 500,000 annually falls short of what is required to stabilize the population and meet future labor market demands.
While Canada has set immigration targets at 500,000 per year until 2026, the RBC report argues that these levels may need to increase further. To counter the effects of an aging population and low fertility rate, the report suggests an annual immigration rate equivalent to 2.1% of the current population, requiring an increase of over 300,000 immigrants annually. This sentiment aligns with a Desjardins study, which emphasized the necessity of substantial growth in the working-age population to sustain Canada’s demographics and economy. However, the report acknowledges the need for a cautious approach to immigration levels, considering challenges like housing affordability and labor shortages in specific sectors.
How mana immigration Can Help
Are you thinking of a relocation to Canada? Our successful history highlights the substantial influence of our immigration expertise, having successfully aided numerous individuals and families in gaining entry to Canada. If you or someone you know is encountering difficulties securing a Canadian work permit, study permit, or tourist visa, we urge you to fill out our assessment form. Moreover, don’t hesitate to contact us for a complimentary consultation. Stay abreast of the latest immigration developments by following our social media channels. So, are you ready to start a dialogue with us about transforming your aspirations into reality in Canada?