The growing population of immigrants in Canada may appear to be a problem but the truth is that immigrants are needed in the country and are in fact a solution to various other problems.
Canada’s population as of 2019 is 37 million. Out of this, a major chunk i.e. 32% includes people aged 55 years and above. By 2040, 25 per cent of the population will be at least 65 years old, according to Conference Board of Canada projections. This is resulting in fewer Canada Pension Plan contributions from workers and more payments going out to beneficiaries. Here’s when immigration plays a crucial role. To stabilize the contribution and payment gap, increase in number of workers is needed. And this is only possible when the country will keep its doors open for immigrants.
Even though growth of immigrants in the country remains a debatable topic, economists say immigrants are a necessary component to achieve economic growth and keep taxpayer-funded systems such as pensions and health care stable and balanced.
The country accepted approximately 3,00,000 immigrants this year and plans to increase this number to 3,50,000 by the year 2021. Also, other reasons that point out the need of immigrants in the country include the low fertility rate of Canada which is estimated at about 1.5 children per woman. And due to increased life expectancy, number of centenarians has increased so the number of people collecting benefits has become more than those paying for it.
This imbalance in the workforce is expected to grow and lead to all sorts of pressure on governments and businesses. According to Conference Board data, in 2017, health care accounted for 35 per cent of provincial spending on average and is projected to rise to 40 per cent by 2040.Also, without immigration, real GDP growth during the next two decades would drop to 1.1 per cent by 2040, because businesses can’t grow when they can’t hire workers. But allowing immigration to rise to one per cent would allow GDP growth to hover between 1.7 and two per cent.
Hence this makes the country dependent on the immigrants for filling the gap between number of workers entering the system compared to leaving it. Even though it’s a little difficult to measure the exact impact of immigration on the country’s economy, many economists are sure about its positive effects.
If you’re planning to move to Canada and start a new life, this is the best time to begin your application process. To get assistance on this, speak to one of our experts today.