Canada’s immigration levels will be rising in the future. The nation hopes to welcome over 500,000 immigrants a year in 2025 & 2026. Well, Canada’s current immigration levels are already at record-breaking highs. However, a recent report from the Royal Bank of Canada states that Canada’s immigration levels will be rising again soon, further stating that the nation’s immigration rates won’t be enough to uphold the population & meet domestic labor market demand.
The Present Situation
Canada needs immigration for numerous reasons, specifically to address concerns around the nation’s demography & labor market. Canada has one of the world’s oldest populations, blended with a low fertility rate. The combination of such factors makes it impossible for Canada to replenish its population with natural-born Canadians. As a result, this makes immigration essential.
Well, this problem is connected to further demands the nation’s economy has on its labor market. This is affected by the same replenishment problem that the population faces.
These two factors help underline the necessity of immigration to maintain Canada’s national health & prosperity in the future. Given this information, it would be reasonable to assume that these are the reasons behind the record-breaking pace of immigration.
What’s The Need To Increase Immigration Again?
Canada’s immigration levels will be rising as the immigration targets will normalize at 500,000 newcomers/ immigrants annually. While this is a record-breaking number of immigrants welcomed yearly, it is not enough to stabilize the nation’s population & meet the future labor demand.
According to the Royal Bank Of Canada report, the nation would need an annual immigration rate equivalent to 2.1% of the present population. This implies that the current immigration targets would have to increase by more than 300,000 yearly newcomers in order to offset the aging population & low fertility rate.
A study by Desjardins also noted similar findings. According to the report, the nation will have to increase its immigration levels & be a function for growth in the working-age population. Well, in this study, the annual growth of the working-age population would have to be 2.2% yearly in order to maintain the present ratios of young to old working people.
Under both these forecasts, the nation will have to continue to significantly increase its present immigration levels for the sake of its demography, meeting labor demand, the continued growth of the economy, & support infrastructure, healthcare, & social institutions.
The Need To Stabilize Levels Between 2024-2026
Even though Canada’s need for immigrants is well-noted, the Royal Bank of Canada report challenges IRCC’s decision to stabilize the present levels.
Canada’s ability to welcome & integrate newcomers into the economy is a key factor determining the overall success of its immigration program. Considering the current accommodation challenges, the nation’s ability to offer housing affordably has come under scrutiny. Well, that’s a fact which has ignited further contention around this subject of immigration.
Well, in response to it, IRCC has committed to readdressing the number of temporary residents – a category which witnessed a massive increase in the aftermath of the pandemic. Moreover, the federal government has committed to addressing acute labor shortages in the construction sector with balanced immigration targets. As a result, this will allow the government to maintain a balance between meeting labor shortages & increasing housing demand.