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Canada Relies on Immigration as Solution to Population Shortages and Economic Growth

Canada’s Immigration Strategy to Combat Population Shortages and Boost Economic Growth

Introduction

Canada is seeking solutions to the crisis of population shortages, low birth rates and an aging workforce and is relying on labor immigration to avoid recession and as a solution to sustained economic growth.

Population Growth

Canada’s population surpassed 40 million for the first time and population growth is expected to continue as Canada welcomes more migrant workers, refugees and international students.

Labor Market Expansion

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The Canadian government relies on immigration as a strategy for expanding the labor market and economic growth, as well as Canada’s international presence.

Population Increase Goal

Canada aims to increase its population by about 1.5 million every year.

Record Arrivals

In 2022, international students, temporary workers and refugees brought arrivals to a record 1 million, up from 500,000 in 2019.

Immigrant Share of Population

The share of immigrants from the total population in Canada reaches 25%, which is the largest share among the largest countries of the G7.

Immigration to Combat Aging Population

Canada relies on immigration to fight an aging population and is trying to overcome the fact that other countries such as Japan and Germany are suffering from labor shortages.

Comparison with France

This strategy differs from that of France, which has decided to raise the retirement age to deal with labor shortages.

Largest Immigrant Communities

Among the largest communities of new immigrants to Canada are Syrians who make up 5%, while expatriates from the Indian community make up the largest percentage at 18.6%, followed by Filipinos at 11.4%, then Chinese at about 9%.

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