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New Study Highlights Canada’s Need for Continued Migration

Without migrants entering the country in the numbers they currently do Canada would face economic downfall.  The country would face the effects of a weakening workforce on their economy along with the strain an aged population would place on the country’s social services. This is according to the results of a new study just released.

The Conference Board of Canada (CBC) illustrated in their study the expected effects closing Canada’s borders to migrants would have on the Canadian way of life; and it certainly would be devastating.

The CBC’s study imagined Canadian life if the country shut down their border posts by 2040.

"If it stopped immigration, Canada would experience a shrinking labour force, weak economic growth, and greater challenges funding social services such as health care," senior research associate Kareem El-Assal said in a release.

Canadian -immigration (1)

An older population equals a smaller work force

Native born Canadians are not reproducing fast enough to supply in the country’s labour force needs by themselves.  The study pointed out that without migrants supplementing the labour force Canada's population would age more rapidly, and the labour force would then start shrinking. By 2040, the ratio of workers to retirees would drop from 3.6 to 2.0. More than a quarter of the population (26.9 per cent) would be 65 and over, compared to 22.4 per cent with a gradual increase in immigration.

Immigration currently counts for 71 per cent of Canada’s population growth and as much as 90 per cent of labour force growth in recent years, stated to the Conference Board.

Canadians would face higher taxes

If only a small section of a country’s population is able to work and thereby contribute to taxes, taxes would have to be raised to care for the large portion of a country’s workforce that have retired and are relying on assistance from the Department of Social Services.  This means heavily taxing the existing workforce to compensate for the increased burden on things like health care. 

A weak economy deters business investment

The shrinking labour force, lower local demand and looming tax increases would also lower levels of business investment, since some businesses would likely choose to forego Canadian operations.

The result would have a devastating effect on the economy

The CBC stated that as a result of the above Canada would then face a seriously sluggish economy.  Canada's GDP growth is expected to grow by an average of 1.9 per cent in the decades to come with a gradual increase in newcomers. But without them, that growth would slow to 1.3 per cent.

The CBC recommends that immigration targets be met

The CBC recommended in its study that Canada focus on prioritizing the family class migrants but also pay special attention to economic migrants – who contribute the most to the Canadian economy.


“Aside from humanitarian reasons, immigrant and refugee families who are reunited tend to have higher rates of homeownership, and are more likely to stay in the country,” said the report.

By 2034, it's expected to account for 100 per cent of Canada's population growth, as the number of deaths will exceed the number of births. The report recommends boosting Canada's immigration rate to one per cent of the total population, from 0.8 per cent in 2017.


Source: Huffington Post

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Canada economy