With a continuous increase in immigration levels to Canada. a question arises as what is the appropriate level of immigrants to Canada? with an estimate of 1.45 million individuals are expected between 2023 and 2025,
A current study aims to address this issue with background and infrastructure of Canada’s public services and federal support as well as the region’s economic and demographic goals.
Laboure market shortages, which Canada’s senior population cannot tolerate, is one of the main objectives of Canada’s immigration system. An attainment of a positive relationship between the admission of economic temporary (those on a work permit) and permanent residence (the greatest class of newcomers admitted into Canada every year) and Canada’s economic potential (as measured trough the country’s economic output gap) had been the key in the past.
However, recently Desjardins reports indicates a swing in this association, with a larger number of new arrivals than the economic gap validates. This combined with low unemployment percentage seem to indicate that there are excessive newcomers for the justification of economic growth.
Despite the immigration efforts by Canada in the recent years, job vacancies have maintained an elevated level over national unemployment. Simultaneously the national rate of unemployment mostly held steady at 5%. This information implies, although, Canada’s approach to economic potential through immigration, there are still numerous jobs available in the economy. Observing that numerous temporary foreign workers come to work in Canada to fill a precise labour market requirement (usually through a LMIA enabled process).
It is reasonable to assume immigration at the present level is acceptable economically, due to the fact that Canada is incapable of filling the positions with its existing population for its increased vacancies.
In addition, the long-term effect that economic immigration has on the Canadian economy has to be taken in to account. Accepting newcomers in to Canada, will help elevate both, the potential GDP per capita and potential GDP growth, as the immigrants are more prospective to be employed than those native to Canada. Immigrants entering Canada tend to be younger, yielding productive years of work and work hours. It is noticed that the population growth of working age (ages 15 – 64) was solely driven by non – permanent and permanent immigrants in Canada in 2022, indicating that in an economic standpoint, immigration has the potential to help meet Canada’s goals and need, both in long and short term.
