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COVID-19, Immigration will save Canada’s economy

Canada will need migrants more than ever once the Covid-19 pandemic is over and while borders are closed to travelers right now, Canada is unlikely to adjust their annual migrant intake of more than 300,000 downwards.

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While the coronavirus pandemic is having a devastating impact on economies around the world Canada has always heavily relied on the contribution of migrants in growing and stimulating their economy.  This could mean that Canada would have to adjust their immigration plans but are unlikely to reduce their immigration target.  It could happen that more immigration places would be made available in 2021 to compensate for losses in 2020 – making now the perfect time to apply for Canadian visas.

Canada Immigration news said in an article that according to a projection made by the International Monetary Fund the global economy will contract by 3 per cent in 2020.  The IMF called the expected economic effects of the COvid-19 pandemic “the worst economic downturn since the Great Depression”, but Canada should be able to stave the effects of this recession.

The consensus among economists is that the Canadian and global economy should rebound fairly quickly once social distancing restrictions have been eased.

In 2020 and the years leading up to it Canada has been showing year on year economic growth – to the point where it is considered one of the world’s most economically stable countries.  Canada’s unemployment rate was at record lows just before the pandemic hit. 

Just days before it announced travel restrictions to help contain the spread of Covid-19, Canada said it would welcome over 1 million immigrants between 2020-2022, mainly to help grow its economy.

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In a bid to manage demographic challenges faced by Canada, it has to stimulate population growth (especially in the young and working age groups) to counter the effects their older population has on the economy.  A very large section of Canada’s workforce is of retiring age, and not enough young people are entering the workplace Canada.  This has created labour shortages and a very small pool of talent and experience for Canadian employers to choose from.  Immigration is the best solution to replace those that are retiring, grow the talent pool and attract the right skills and experience to the country. In fact immigration has been the main driver of Canada’s population growth since the 1990s, and will be the only driver of it by the early 2030s.

The reason for this is that Canada has one of the world’s lowest birth rates and one of the world’s oldest populations. As more Canadians retire, it will struggle to replace them in the labour market since the country is not having enough children. This is where immigration comes in.

Today, immigration tends to account for all of Canada’s labour force growth, or the vast majority of it, in a given year. This means that Canada would constrain its economic growth potential if it welcomed fewer immigrants.

Source: Canada Immigration News

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