Despite being the second largest country by land mass, Canada’s population is small in comparison to many other countries. Not only does Canada have an aging population, but the size of an average family is decreasing per household as birth rate continues to decline. This places considerable stress on the economy, on the healthcare system, and it demands more from the employed sector of our population. It is very difficult for Canada’s job market to grow with such high numbers of older citizens leaving the workforce and entering into retirement, and fewer to fill those vacant positions. Immigration to Canada is one strategy that can help keep the economy and job market stable. So, if you stop to think about how immigrants and newcomers to Canada can play a role in making this happen, below is a breakdown of just that.
In order to understand how immigration will help Canada’s job growth, you need to first know what is currently happening with the population of our country. As many know, the baby boomer generation comprises a substantial portion of Canada’s population. According to Statistics Canada’s 2011 census, they represented almost 30% of the population at that time. That means there will soon be an influx in the number of people retiring. Under normal circumstances this is not a bad thing as it makes room for the younger generation to become a part of the workforce. However, at the same time, the rate of children per household has been steadily declining, and this is contributing to an overall declining population.
Decreasing household size is one of the main reasons as to why there are fewer children than seniors in Canada. On average, women are waiting longer than usual to have children, and then they are only having one or two children, versus having larger families of three or more children, as in the past. Over time this results in dwindling population growth and fewer young Canadians to enter the workforce to replace those who are retiring. Opening our country to immigrants allows us access to a pool of young, skilled and educated candidates who could fill this void.
Immigration, Refugees and Citizenship Canada’s Departmental Plan for 2019-2020 is to increase permanent residence admissions to 350,000 in 2021. This may seem like a substantial increase in the number of people being admitted into Canada; however, it will only make up about 1% of the total population.
Increasing the younger population also allows for more people to contribute to the Canadian Pension Plan, which is important to take into consideration with an aging population. More seniors will need to rely on the pension plan as well as our health care system, so we need to ensure that it is able to support everyone.
Contribution to Economic Growth
Another aspect to consider is that an increase in population results in a higher demand for goods and services, thereby further contributing to economic growth. Not only do new Canadians bring valuable skills and cultural diversity to Canada, they help our economy and are essential to our job growth.
Immigration to Canada can help build a stronger country for our future; however, the benefits of immigration are dependent on how well new Canadians integrate into their new home country. A welcoming environment is important to ensure that new Canadians are set up for the same success as those who are already a part of the community. Understanding the benefits of immigrants is just the start of making this happen.
If you are looking to become a permanent resident of Canada, we encourage you to reach out to an immigration lawyer who can help facilitate this process.