Canada requires higher immigration targets ahead because the existing immigration rates might not be adequate to fulfill the domestic labor market requirements.
This is in light of the recent announcement on November 1. The new Immigration Levels Plan seeks to keep the immigration targets consistent with the previous plan. However, the Royal Bank of Canada claims that the immigration targets will have to rise again.
Canada requires higher immigration targets ahead – what is the existing situation?
Canada is in ardent need of immigration for a variety of reasons. The primary reasons are to combat Canada’s labor market and demographic requirements. There are several factors that make immigration crucial for Canada because of its aging population along with a reduced fertility rate. Hence, the country will find it extremely challenging to balance the population. Further obligations that Canada’s economy (ranked ninth in the world by GDP) places on its labor market—which is affected by the same replenishment issue that Canada’s population faces—are linked to this issue.
Both of these aspects serve to highlight the need for immigration in order to preserve Canada’s wealth and general well-being in the future. With this knowledge in hand, it would make sense to conclude that these are the causes of Canada’s current record-breaking immigration rate. However, this is only half of the picture when one considers the present stabilization of immigration targets.
Why Canada require higher immigration targets ahead?
According to the latest immigration plan, the immigration targets are likely to remain steady at 500,000 immigrants each year until 2026. This accounts for 1.3 percent of the total Canadian population. Although this implies a record-breaking number of immigrants each year, it is insufficient to normalize the Canadian population.
Reportedly, RBC claimed that Canada will require an immigration rate of 2.1 percent of the existing population. This implies at least 849,944 permanent residents annually. Furthermore, the available immigration targets will need to rise by over 300,000 yearly immigrants. This is in order to overcome the aging population and reduce fertility rates.
You might be able to derive similar findings in an earlier report of the Desjardins Study in 2023. The report also emphasized that Canada must renew its immigration initiatives and ensure progress in the working population. The massive figure of 500,000 permanent residents consists of refugee and family-class sponsorship immigrants.
The Desjardins study, which took into account Canada’s socialized healthcare system and labor market, calculated that the yearly expansion of the working-age population would need to be 2.2% (721,600 newcomers) in order to maintain the current ratios of young to old working people. Further, this indicates 4.5% (1,476,000 newcomers) in order to preserve the past percentage of working-aged to retired people.
Keep in mind both these predictions, Canada must surely raise its existing immigration targets significantly. This will improve Canada’s demography, fulfill labor market requirements, increase economic growth, and assist Canada’s healthcare, infrastructure, and expanded social institutions.
The consistent levels between 2024 and 2026
The RBC research notes that while Canada has a long-standing need for immigrants, the IRCC’s choice to stabilize existing levels is also justified.
What will ultimately define the success of Canada’s immigration program is its capacity to accept and assimilate newcomers into its economy and demographics. The nation’s capacity to provide affordable housing for both new immigrants and Canadians has come under question in the aftermath of the recent housing crisis. This development has further stoked controversy around immigration.
In response, the International Relations Commission (IRCC) has pledged to revisit the issue of temporary residents (those with study or work permits), a group that had a sharp rise in the wake of the COVID-19 outbreak. Furthermore, the federal government has pledged to address significant labor shortages in the construction industry, a field with a persistent lack of job openings, through balanced immigration that reflects the stabilized immigration targets. This will enable the striking of the balance that Canadian economists have been advocating for between meeting labor shortages and raising housing demand.
If you seek information on how to begin your Canada immigration application process, you can talk to our MakeHomeCanada experts at 1-800-979-0509, or you can drop us an email at [email protected].
