By admin (May 21, 2024)
Immigration is About to Change the Demographic of Canada
Immigration is about to change the demographic of Canada in the next three years, as immigration targets are expected to have positive outcomes for the country.
The arrival of approximately 1.45 million immigrants is estimated by Canada in the next three years, with 60% projected to be through economic class programs. There will be several positive effects on the economy of Canada and society due to the arrival of the wave of newcomers. New immigrants have more chances to be employed than their peers born in Canada.
This recent phenomenon occurred because of the convergence of two trends: the gradual decline in the employment rate of people born in Canada and the increase in the employment rate of new immigrants starting in 2016.
New immigrants are often selected based on human selection factors and are disproportionately of core working age (25-54) which make them ideal participant in the labour force of Canada. The Canadian population is facing the issue of rapid aging with a consistent group of retirees exiting the workforce every year.
Change in the Demographic of Canada due to Immigration
The main cause of the population growth of Canada is immigration. The new immigrants are heavily comprised of people coming from economic immigration programs and people of core working age. In the next coming years, a huge influx is expected and the population of Canada is estimated to become much younger than it is right now. With retirees exiting the labour force every year, the median age of a working Canadian is 41 years right now.
A host of economic advantages to the country and the societal benefits of raising the population of Canada to self-sustaining levels are expected to be brought by the influx of core-aged immigrants.
Potential GDP Growth is expected to be Boost by Immigration
Many of the new immigrants have jobs before even entering the country, which is why they are very much tied to the labour force. New immigrants are admitted to the human capital factors which enable them to contribute to the workforce effectively.
Labour input is expected to increase with immigration which in turn will result into an increment of Canada’s GDP (Gross Domestic Product) per capita. The total monetary value of all finished goods and services within a country’s borders is known as GDP.
An increase in GDP can lead to further benefits like wage growth and increases in hiring which is generally a sign of a healthy economy. The arrival of newcomers is expected to reduce the inflationary pressures on the economy of Canada and further help bolster the supply-side economy.
How will Canada Handle this Wave of Newcomers?
Cyclical outcomes for immigrants in labour market are observed for a long period. The newcomer employment rate is spiked in roughly every ten years before diminishing once again. As newly landed immigrants begin to establish themselves in Canada, they have a hard time in gaining initial footing in the Canadian labour market.
Newcomers will still have positive labour outcomes, that being said. Job vacancies are double what they were during the pandemic, they are currently at record highs. One of the key reasons behind historic immigration targets is that the labour market remains tight.
Desirable human capital factors and newcomers with in-demand skills seem more likely to have favourable outcomes in the Canadian labour market in addition to an aging population exiting the workforce every year.