While Canada, along with the rest of the world, might be facing the pandemic called COVID-19, and everything might seem to come to a complete halt. Still, immigration is integral to Canada’s economic growth. As shared by Immigration, Refugees and Citizenship Canada (IRCC), there might be delays in the processing of some programs and some offices closed temporarily, but immigration to Canada will keep rolling. The Conference Board of Canada came up with the main findings regarding the relationship between immigration and Canada’s economic growth. Firstly it says because of the ageing population in Canada and low fertility rate, Canada needs new immigrants to enter the workforce and to keep up its high expectations for everyday comforts.
Immigration has made an immense contribution to Canada’s growing economy as many foreigners settle as permanent residents in Canada. The report predicts that between 2018 and 2040, 11.8 million individuals will leave Canadian schools and enter the job market, whereas 13.4 million workers would be leaving the workforce primarily because of retirement. It will leave a massive gap in the labour market. These statistics would inevitably affect the economic growth of the nation. The consistent on-going immigration process is the only solution to this problem that acts as a tool for helping balance the ratio of retirement rate. It boils down to the fact that Canada would have to depend on its immigrants for work and economic growth. Due to these factors, the graph of immigration will continue to grow north, which will increase the economic growth of Canada. As per estimates, immigration will account for Canada’s net growth in the labour force, i.e. 3.7 million experts and 33% of the economic development rate during the period 2018 to 2040.
In this report, four different scenarios were put forward, which includes the option of zero immigration as well, which has never happened even at wartime in the last 100 years. So, be assured that this pandemic might have slowed the process of immigrating to Canada temporarily, but it cannot and will not stop immigration forever. Among the different scenarios explored in this report, the best way forward will be the increased participation from under-represented groups such as women, the indigenous people and people with disabilities along with a gradual increase in immigration levels. This scenario would result in an increase of 5.9 million workers and the labour force growth rate of 1.1 percent as compared to the annual growth of 1.3 percent during the period 2018 to 2040. With this formula in place, not only will it help in the growth of the economy, but this growth will be more inclusive, which would help to alleviate poverty and strengthen social inclusion and cohesion.
Out of the total population of Canada, 65 or more percent would belong to the ageing population group in 2040. Calculating the low birth rate, Canada will have to depend intensely on immigrants for its economic growth if the nation needs to keep up its social foundation and stable development. This growth can only be achieved by progressive immigration policies and increased participation from under-represented groups.
Canada Immigration Plans
The present-day government has been aggressive with their immigration policies as they introduced the Immigration Levels Plan for 2020-2022, wherein the government of Canada expects that the yearly intake of immigrants would increase to up to 390,000 in the year 2022. This increase in the rate of immigration, especially in the sectors such as transport, equipment, health and skilled trades, would entirely aim at improving and maintaining the economic growth of Canada. Moreover, it also stresses the fact that immigration is getting more regional and need-based. More quotas will be allowed for provincial nominee programs such as the BC PNP and other pilot programs such as AIPP, RNIP, Agri-Food and Caregiver programs. The government recognizes the importance of immigration for the economic and regional growth of Canada.
Would Change in Canada’s Fertility Rate Impact Immigration?
Since 1971, the fertility rate of Canada has always been on the lower side, and it was not enough for replacing the current Canadian population. Although some literature suggests government policies can affect fertility rates, the impact tends to be small or non-existent. Evidence in Quebec and abroad is not compelling enough to support efforts for boosting the fertility rate. It is unlikely that Canada will achieve replacement rate fertility levels. Also, a change in fertility rates would only affect Canada’s labour force. It would take decades to change the scenario by increasing the fertility rate of Canada. The entry of immigrants as the labour force would help tackle the factor of low fertility rate and for growing Canada’s economy. It is because when the immigrants land in the country to enter the work market, they have to contribute to tax payment, which means they help in growing the economy.
Canada’s economy will develop when it adds more immigrants through economic immigration programs such as Federal Skilled Worker, Federal Skilled Trades, Canadian Experience Class, and provincial Nominee Programs such as the BC PNP. Canada immigration would add permanent residents, Temporary Foreign Workers, and so on to its job market and would utilize those workers all the more profitably. People entering the nation on Temporary Foreign Worker visas have an active contribution to the economy as they successfully satisfy the seasonal demands such as agriculture, sea-food, and so on. Tragically, Canada’s work profitability execution has been delicate for decades. Moreover, lately, it has not had the option to rely upon the Canadian-conceived population. For creating the work power development, Canada requires more immigrants having a work permit for fighting against the factors of an ageing population and low fertility rate. Due to these factors, it clarifies that Canada has an overwhelming dependence on immigrants.
Technology Development and Immigration
It is doubtful that innovation in technology will harm the Canadian job market. In case if the changes in technology advances, then it will affect the current job market as there will be a decrease in jobs. On the other hand, technological advancement will also generate new ones. Additionally, the efficiency of completing the work would advance supporting economic growth. As such advances are severely required in the light of Canada’s fragile efficiency performance, Canada will still need more work forces for achieving its full economic potential. Therefore, immigration will continue to be a vital part of growing Canada’s workforce and adding skills to the economy for increasing and maintaining the economic growth of the nation.
Lastly, the speed of technological innovations and advances are unlikely to be as quick as some may have anticipated depending on a variety of aspects, comprising economic, political and social factors. For example, societal and political debates about new regulatory frameworks will be necessary and will slow down the impacts of technology on the Canadian workforce.
The factor of technology development will take decades, and still, Canada’s economy will depend on the immigrants as the country would face a shortage of workforce. The economy of Canada will increase as it adds more skilled immigrants, and by utilizing these labourers effectively and productively, Canada would maintain its economy. Hence, the data gathered by the Conference Board of Canada rightly points out that Canada heavily relies on the factor of immigration.
As immigration remains crucial for the growth of Canada, this is time to plan and strategize to achieve your dream of immigrating to Canada. The experts at Elaar immigration, which is a Vancouver based immigration firm providing strategic advice and representation on all immigration matters, can help you throughout this entire process. For knowing more about Canada immigration, do not hesitate to contact the Regulated Canadian Immigration Consultant at Elaar immigration.