November 18, 2022

Canada's Need For Immigration

The recent release of the Canada Immigration Levels Plan shows that Canada is on track to welcome a record number of permanent residents by the year 2025. At this point, the large increase of permanent residence levels is not merely a want but also a need. This is due to various social and economic factors impacting Canada.

It’s no secret that the COVID-19 pandemic causes economic turmoil in Canada and across the world. The pandemic, coupled with Canada’s aging population and global warming has created both new opportunities and unprecedented challenges. This has led Canada to seek new immigrants into the Canadian business and startup ecosystems as a way to increase labour force and manufacturing, as well as decrease unemployment and reliance on imports for basic needs.

For those looking to immigrate to Canada, now is the time, as Canada has one of the highest ratios of first generation immigrants among all of the industrialized western countries in the world. Canada is a country that not only promotes multiculturalism, but with immigrants making up nearly one fifth of Canada’s population, it is clear that Canada values diversity and inclusion of immigrants.

So, why is Canada welcoming so many new immigrants, and what are the benefits to Canada and the immigrant families? Let’s first breakdown what Canada needs - this will help understand who will be a good fit for Canada and why.

Why does Canada need immigrants?

  1. Increase population size - Since the baby boom that followed World War 2 there has been a slow growth to Canada’s population. This has caused Canada to have a high density of population between the ages of 65 and 90 and a lower population of younger individuals who would take over and grow the labour force. Since Canada’s current population is not reproducing fast enough to grow organically, bringing in highly skilled immigrants is one way to bring new business, create new jobs and increase Canada’s production capacity.
  2. Create jobs - Following the COVID-19 pandemic, Canada is facing both a labour shortage and unemployment depending on the industry. For instance, Canada is facing a labour shortage in the hospitality industry, healthcare sector and transportation sector. However, the lack of new businesses that can create opportunities for growth in innovative sectors can make some jobs hard to obtain.
  3. Retirement - People in Canada aged 65 and older currently make up over 18% of the population and are expected to rise to 25% by 2060. During the pandemic, many of these workers chose to retire from their jobs leaving many job vacancies. While this would be acceptable with adequate reproduction levels, statistics show that the replacement rate (the required reproduction rate to have the population replace itself) is 2.1 births per woman, which is not high enough to sustain or grow the population size in Canada. This problem is solved by welcoming more immigrants to fill the inevitable gaps in Canada’s population structure.
  4. Leaving Workforce / Self-Employment - During the pandemic the Canadian government grants/income support was helpful in the short run, but did not help economic recovery in the long run. These pandemic income supports not only allowed people to stay supported without the need of having a job but also have funded many self-employment opportunities to those who were either laid off. Therefore, once jobs became available it was hard to find workers since the most innovative, hard-working people had already found alternative solutions. Since March 2022 alone, over 200,000 people have left the Canadian workforce causing the labour force participation rate to drop to 64.7%. Since the labour shortage can not be addressed from within Canada (even after the COVID-19 pandemic), immigration is used to fill the voids of the labour market. Canada is keen on skilled immigrant workers as immigration now makes up for more than 80% of Canada’s population growth.

Now that it is established that Canada needs immigrants, what type of immigrants does Canada need?

  1. Entrepreneurs
  2. Investors
  3. Skilled Workers

By referring to the Canada Immigration Levels Plan, you can confirm this is true. By 2025 Canada is looking to welcome over 500,000 permanent residents per year. Federal business immigration programs, including the Startup Visa Program, make up a large chunk of permanent residencies that will be issued by IRCC. This is because the Startup Visa Program has the ability to bring skilled workers, investors and entrepreneurs all under one program! By attracting investors, entrepreneurs, and skilled workers at the same time, Canada’s economy can grow and more opportunities can prevail.

Now is the time to pursue Canada. Never before has Canada welcomed so many immigrants as permanent residents. Canada needs help and immigrants want opportunity. Through business immigration, everyone wins - Canada helps immigrants and immigrants help Canada too!