In a bid for the country to offset labour shortages, Canada currently needs increased immigration. The critical labour shortage results from an aging population and a low birth rate in Canada.
As a result of the situation, immigration has been on the rise in Canada. As of 2021, immigrants represent 23% of Canada’s total population. According to Become A Canadian, this record was the highest proportion since Confederation in 1867.
Moreover, this record makes Canada the highest among all G7 countries. In 1921, Canada had a record set when immigrants comprised 22.3% of its population. The record in 2021 thus makes it the second time the country is topping the list among all G7 countries.
Factors Responsible for Immigrant Increase in Canada
Immigration is on the increase across Canada because of two main factors. One of these factors is the aging of the natural population of Canada. The other reason is the low fertility rate in the country.
Become A Canadian stated that these unpleasant situations are causing the country’s labour market to shrink. Ultimately, this could negatively affect the country’s economy in countless ways.
Canada thus needs immigration to ensure its continued economic development and growth. In other words, increasing immigration will help the country avoid potential labour shortage problems.
Impacts of Immigrants on Canada
New immigrants’ employment, earnings and spending impact Canada’s economy positively. An increase in immigration will lead to labour force growth in the country. In all, this factor will help improve the economic growth across Canada.
