Canada’s small population and a workforce that’s growing old may lead to a considerable drop in immigration leaving the Canadian economy in trouble by 2040 as foreseen by the new Conference Board of Canada.
According to the senior research associate of the Conference Board, Kareem El Assal, immigration is a significant contributor to the Canadian economy in many different ways. He further added that the immigrants will not only contribute to the country’s workforce but will also contribute to country’s economy.
Based on the 2016 data gathered from Stats Canada, almost 22 percent of Canada population consists of immigrants. The Conference Board further forecasts that by 2040 Canada’s population will be completely powered by immigrants as opposed to the 71% growth in population due to immigration in the current situation.
The report by the Conference Board observes two aspects of which the first delves into the possible effect on the economy of Canada in case the immigrant entry into the country stops completely or reduced dramatically while the second observes the outcome of increasing the immigration levels from 0.8 percent to 1 percent in 2017.
While the increased immigration helped support economic activity, the influx of young immigrants of working age also helped address the issue of the ageing population of the country. The report highlighted the fact that in Canada where immigration has it the lowest of all time, 26.9 percent of the population would be of 65 years of age by the year 2040 and this will lead to substantial drop in the country’s growth from 1.9 percent to 1.3 percent.
In the meantime, a Carleton University professor, Christopher Worswick described while there are several possible causes why the Canadian immigration should be increased, he also warned against the levels rising too intensely.