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Now is Not the Time to Lose Faith in Immigration: Canada's Prosperity Depends on It



Immigration isn't the only solution to economic problems, but Canada cannot grow without the skills and ambition of newcomers. Countries around the world admire Canada’s success in attracting and welcoming immigrants. However, as the population ages, Canada risks losing the belief that immigration is good and important.


Why Immigration is Essential

Canada GDP per person is falling faster than in many other advanced countries, and the productivity is low. Despite declining support for increasing immigration, the need for new immigrants to solve its demographic problems is urgent. More Canadians are retiring than entering the workforce each year, and birth rate dropped to a historic low of 1.33 in 2023. Immigration is crucial to maintaining living standards and services. Without it, the number of people over 65 per 100 working-age Canadians would double by 2071, putting a huge burden on the workforce.


Boosting Productivity and Economic Growth

Carolyn Rogers at the Bank of Canada says that productivity growth is vital, and current issues have been building for decades. Some think newcomers reduce businesses’ incentive to invest in technology, but this view is short-sighted. To overcome demographic challenges, Canada needs more workers and more investment. Allowing the population to decline would be unwise.



Immigrants can help improve productivity over time. A recent Statistics Canada study showed that “two-step” immigrants, who gain education or experience in Canada before becoming permanent residents, usually earn more (showing higher productivity) than those who come directly as permanent residents. Many top entrepreneurs, like Tobias Lütke of Shopify, are immigrants.


Discussing Immigration's Role

Immigration alone can't fix every problem, but Canada needs the skills and ambition of newcomers to grow. Canada should have a renewed discussion about its national goals, as there is a strong case for improving the immigration system. Now is the time to ensure that immigrants chosen for their economic impact match labor market needs. IRCC recently committed to hiring a Chief Talent Officer and are ready to support this effort through connections with employers nationwide.


Immigration's Broader Impact

Immigration affects many areas, not just the economy. Newcomers help with workforce and demographic pressures but also increase demand for housing, healthcare, and transportation. This demand, especially in major cities, can worsen the housing crisis, a problem with deep roots.



The recent cap on international students shows that the government is considering factors like housing and support for newcomers. Prospective immigrants need to see a complete future in Canada, not just a job. If they can't, more will leave for better opportunities or choose not to come at all, wasting our global advantage.

While canada needs immigrants, adequate preparation should be put in place to support and help them integrate and thrive upon arrival in canada.




Your Pathway to Canada

At InfoPlace Canada, we are dedicated to helping you navigate the complexities of Canadian immigration. Whether you seek temporary stay, permanent residency, or work permits, we offer comprehensive services tailored to your needs. Schedule a consultation today to start your journey to Canada and contribute to the country's prosperous future.

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