Canada is increasingly becoming reliant on immigration for the growth of its labour force which is a vital aspect of economic prosperity. Nevertheless, all Canadian citizens may not be aware of the advantages of immigration. A better understanding can shed light on debates regarding the immigration policy of Canada.
The population of Canada has been aging rapidly over the last 10 years. As a result, the labour force is declining in terms of % of the population. The Canadian’s rate of participation declines steeply after the age of 64 years. An increasing number of baby boomers are retiring and feeding decrease in the prime working age population.
Thus, the Federal Government has been increasing the annual intake of immigrants to Canada. It is for mitigating the negative impacts of this demographic transition on the government finances and economy.
A high rate of migration alone cannot fully offset the aging of the population. However, it has emerged as a major factor contributing to the growth of labour force and population in Canada.
The impact of new immigrants on wages and employment depends on diverse factors. These include the rate of integration into the labour market, skill composition of immigrants, and the size of the inflow
Newly arrived immigrants are usually younger than the majority of Canadian citizens. Thus, hike by 0.9% of the population in the immigration level will help to slow the speed of decrease in the working-age population.
Immigrants possess higher rates of education as a matter of fact than non-immigrants in Canada and this gap is widening. Around 50% of the core-aged migrants have a University degree (25-54 years). This is in comparison with 29% of the population born in Canada, as quoted by the Globe and Mail.
Likewise, migrants are more likely to launch their own businesses in Canada due to common employment barriers. These include language ability, credential recognition, and lack of Canadian work experience.
Newly arrived immigrant Entrepreneurs tend to own young high growth firms. So, they contribute to net job creation in Canada disproportionately.
At the same time, improvement in the employment of immigrants is due to their better assimilation into the labour market. This is chiefly due to improvements in the immigration system of Canada.
Canada needs to address certain barriers through appropriate policies for selection and integration. This is while attracting an increased number of immigrants for the growth of its labour force. It is essential to maintain a healthy Canadian economy.
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