Canada declared on November 1, 2023, that it would maintain immigration levels at 500,000 per year in 2025 and 2026. Canada’s immigration levels are already at record highs, but a recent Royal Bank of Canada (RBC) report suggests that they will need to rise again soon to maintain the country’s population and meet domestic labor market demand.
Current Condition
Immigration is needed most to address demographic and labor market concerns in Canada. Like many Western nations, Canada has one of the world’s oldest populations and a low fertility rate (1.40 births per woman). Immigration is necessary because this combination prevents Canada from rebuilding its population with natural-born Canadians. Canada, the ninth-largest country by GDP, has higher employment market demands due to its population replenishment problem.
Why immigration may need to surge again
Annual immigration targets are 500,000 until 2026. This record number of newcomers (1.3%) is not enough to stabilize the population and meet future workforce needs. RBC thinks Canada needs 2.1% annual immigration. Annually, 849,944 permanent residents arrive in Canada. Addressing Canada’s low birth rate and elderly population may be resolved by adding 300,000 immigrants annually.
Desjardins assessed Canada’s desired 2023 immigration levels. The report advocates for additional immigration, especially for working Canadians. The 500,000 foreign nationals arriving in Canada as permanent residents include refugees and family sponsorships. Canada’s employment market and socialized healthcare infrastructure affected working-age population growth, according to Desjardins. Also, maintaining the young-to-senior ratio requires 2.2% annual growth (721,600 entries). Nevertheless, maintaining the historic working-aged-to-retiree ratio requires 1,476,000 arrivals, or 4.5% annually.
Both data show Canada needs more immigrants in order to improve demography, labour needs, economic growth, healthcare, infrastructure, and social institutions.
The need to stabilize levels between 2024 and 2026
Canada’s immigration program depends on integrating newcomers into its economy and society. Recent housing challenges have prompted concerns about the country’s ability to house immigrants and Canadians affordably, which raised concerns amongst the relevant stakeholders. This raised immigration concerns. In response, IRCC will review temporary residents, especially those on study or job permits. This category grew due to COVID-19. The federal government has also promised to solve construction manpower shortages, which have produced job openings. They plan to do this via a balanced immigration policy that satisfies stable targets. This method balances worker shortages with housing demand, say Canadian experts.
