Canada is relying on immigration for its economic and demographic growth
At the end of October 2020, the Government of Canada announced a plan to support economic recovery through immigration. With this plan, immigration targets are increased by 12.5% to stimulate the Canadian economy, drive future growth and create jobs. Canada aims to welcome 401,000 permanent residents in 2021, 411,000 in 2022 and 421,000 in 2023.
Like many developed countries, Canada has one of the oldest populations and lowest birth rates. Combined, they could lead to a decline in wealth and living standards. It will put a heavier burden on a diminishing labor force to generate sufficient tax revenues for the government to maintain public services like healthcare and education.
Canada decided that immigration is the solution to reverse this potential decline.
Immigrants will create jobs and help to offer services to an aging population – 17.1% of Canada’s population is older than 65 years old. It must also be mentioned that 9 million Canadian baby boomers will retire by 2030, leaving the country with less workers and increasing healthcare costs. Furthermore, immigration will stimulate the population growth rate of only 0.89% in 2020. The country’s birth rate has fallen to an historical low of 1.47 children per woman in 2019. The country is and will increasingly rely on immigration to maintain its population levels.
Canada expressed its desire to attract more immigrants to support and stimulate its economy. Will you seize this opportunity?