Statistics Canada reported that the country’s population reached nearly 37.6 million people with an annual growth rate of 1.4 per cent – the highest of any G7 country, mostly, though not entirely, driven by immigration. 

Canada accepted some 300,000 immigrants in 2019 alone. The country is expected to welcome nearly 350,000 people per year by 2021. This makes an interesting proposition to understand as to how immigration is helping Canada grow as a developed country.

 

Ageing demography

The demographic projections by the Conference Board of Canada reveals that 25 per cent of the population will be at least 65 years old by 2040. It shall be 8% rise from today’s old age population. As a result, the country will experience a steep increase in its retirement rate over the coming decades. 

As more people move out of the active workforce in Canada, greater will be the impact of having fewer contributions from workers to Canada Pension Plans. Experts hint the role of immigration in becoming future contributors. 

 

Improve labour demands

One of the bigger challenges that Canada is facing is its labour force is out of balance. During the next two decades, 13.4 million people are projected to exit the workforce, but only 11.8 million people will finish school and join the workforce.

A private report in 2019 report found an interesting co-relation between GD growth and immigration. It projected that without immigration, real GDP growth during the next two decades in Canada would drop to 1.1 per cent by 2040. Whereas allowing immigration to rise to only 1% would allow GDP growth in Canada to hover between 1.7% – 2%.

 

Contributes to economic growth

Experts have time and again reasoned that immigrants to Canada are a necessary component to achieve economic growth. It is also an important component to keep taxpayer-funded systems such as pensions and health care stable and balanced.

A private report published earlier this year found that there would be great impacts on the amount of taxes paid by future generations if immigration levels were reduced. Hence boosting immigration becomes necessary to enhance the growth of Canada.  

 

Find your best options of immigrating to Canada

Some Immigrants to Canada come for jobs – economic class; some come to unite with spouses or children – family class, and others are refugees for one reason or another. The three federal immigration programs managed by Express Entry system – Federal Skilled Worker, Federal Skilled Experience Class, Canada Experience Class and associated Canada Provincial Nominee Programs are some of the best options available for you to immigrate to Canada. Contact us to know more about these immigration programs.

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