by ImmiLaw Global

Why Canada Needs More Immigrants?

To keep its economy strong, Canada promotes significant immigration.

Its population is among the oldest in the world, and its birth rate is among the lowest. Canada has a low natural population growth rate, which harms the labour force expansion and economic development. It is challenging for Canada to raise taxes to fund social expenditure on services like education, health care, and other crucial areas that ensure the country’s high living standards. Low economic growth makes this problematic.

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As a result, Canada has increased immigration levels since the late 1980s to accelerate population growth, labour force expansion, and economic development. Most of the population, labour force, and a growing portion of Canada’s economic growth depend on immigration.

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Take into account that 9 million baby boomers in Canada will reach retirement age in 2030. Canada will thus have fewer workers and spend more on social programmes for healthcare. For over 30 years, Canada has taken the initiative to address this issue by gradually expanding its immigration goals. Since 1988, Canada has routinely accepted more than 200,000 immigrants annually. It has just resolved to raise its levels to more than 400,000 annually. The current immigration rate in Canada is somewhere around 1.1%. In other words, Canada accepts three times more immigrants per capita than the United States of America.

Based on its demographic realities and immigration trends, Canada will probably continue to gradually increase its immigration numbers over the coming years. The country’s economy and fiscal status will continue to be supported by immigration. The short-term effects of COVID-19 have hurt Canada’s economy and raised social sector spending. The birth rate in Canada also decreased in 2019 to 1.47 children per woman, the lowest level ever. Given the low birth rate before the epidemic and the possibility that the pandemic would lower the birth rate even further owing to economic instability, In the years to come, Canada’s population growth will depend increasingly more on immigration. Immigration will make up an increasingly more significant portion of the growing labor force in the following decades if Canada’s birth rate stays low. Finally, to fund government expenditures beyond COVID-19, Canada will need to expand its revenue base through immigration. Due in part to Canada’s labour crisis, immigration objectives have risen over the past five years.

By 2030, about a quarter of the population will no longer be employed. The gradual death increase and Canada’s comparatively low fertility rates will make the shortage even more severe.

Economic growth, family reunification, and refugee assistance are the three main objectives of Canadian immigration.

Canada currently hopes to accept nearly 460,000 new immigrants per year under its Immigration Levels Plan, which would be a record-breaking number. To direct its operations, the federal department of Immigration, Refugees and Citizenship Canada (IRCC) publish a new Immigration Levels Plan each year.

In 2025, Canada will get 500,000 new immigrants.

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