Increasing the immigration rate of Canada to one per cent of the total population from the starting of 2030 will help to overcome the challenges that have come up due to aging population and provide towards the economic growth of the country, argues a new report by the Conference Board of Canada.
This increase will result in 415,000 new immigrants coming to Canada every year, which will lead to the population of the country moving to 42 million by the year 2030.
depending on the recent demographic trends, increase in immigration rate to 1% by the early 2030s will enable Canada to increase its population growth rate in recent decades and provide for economic growth and support labour market requirements in the long term, said the authors of the report, Daniel Fields and Kareem El-Assal of the Conference Board’s National Immigration Centre.
Last November, a new multi-year immigration levels plan was announced by the federal government of Canada which will result in the admission of new immigrants increased to 340,000 by the year 2020. With this the immigration rate will be at 0.9%. 310,000 is the admission target for the year 2018 which will give 0.84% increase.
Report Takes a Look at No Immigration vs 1%
The new report highlights the issues that has been raised by the Government of Canada, provincial governments, economists and business leaders through the country to increase immigration in order to remove labour shortages that has been caused due to aging population of Canada.
In case there is no immigration, the labour force of Canada will shrink and it will slow down the average annual GDP growth rate to 1.3 per cent by the year 2040. this will have a ripple effect as the tax rates will have to be increased as the number of people paying tax will reduce.
This is not all, as due to fewer taxpayers, the living standards of the Canadian people will go down and the ability of the country to provide for essential public services will diminish, particularly health care.
Immigration has played an important role in the growth of Canadian economy. They have accounted for nearly all labour force growth and almost three-quarters growth in its annual population.