A new analysis contends that Canada needs to accept many more immigrants to balance out its aging population at a time when critics are challenging
A new analysis contends that Canada needs to accept many more immigrants to balance out its aging population at a time when critics are challenging the country’s goal to increase immigration. It is discovered that the working-age population would need to increase by 2.2% annually through 2040.
The number of Canadians in this group would also need to increase by 4.5 percent annually if the nation wishes to return to the average level of old-age reliance it had between 1990 and 2015. The country’s ability to accommodate increased inflows of newcomers during a housing crisis and the overall economic impact of having more people are the two topics of discussion raised by the potential increase in immigration numbers.
A record-breaking one million persons were added to Canada’s population last year. The nation’s overall population increased by 2.7%, the fastest rate since 1957.
The Liberal government is aiming for greater yearly immigration targets, which would see the nation accept 500,000 immigrants per year by 2025, which coincides with the strong population increase.
The country needs more Canadians of working age to support the tax base as more people retire, according to proponents of more immigration, who claim that the labor market can accommodate additional employees. Talented people are coming to Canada who are finding employment that allows them to create earnings very rapidly that are exceeding the Canadian average. Critics counter that depending too heavily on immigration to meet the country’s labor needs would deter companies from making technology investments that would increase labor productivity and lessen reliance on temporary employees.
According to a recent Desjardins research, if immigrants continue to have the same success finding jobs as they have recently, Canada’s goal to increase immigration might improve the gross domestic product (GDP) per capita. The size of a nation’s economy divided by its population is known as GDP per capita. Many believe it to be a more accurate reflection of a nation’s standard of life than its overall GDP statistic. The federal government could adjust the flow of temporary foreign employees but one of the biggest obstacles is housing.
According to a survey, to counteract the pressure on prices brought on by a greater number of permanent inhabitants, the nation would need to construct 100,000 extra units per year. Housing prices typically rise by 3% for every 1% increase in population. One of the variables contributing to inflation, according to the Bank of Canada, is the impact of population expansion on housing costs.
Recent immigrants, especially those who entered through the economic stream, have better employment prospects than earlier cohorts. Strong population expansion brought on by immigration increases both demand and supply for goods and services in the economy, easing labor shortages while also boosting consumer spending and housing demand.