This article highlights the recent growth in the number of non-permanent residents in Canada and the positive role they could play in the country’s labour market as demographics squeeze workforces over time.

The authors point out that non-permanent residents drive Canada’s population growth, with more than a million work and study permits issued in 2022. The increase stems partly from Canada’s post-pandemic recovery, which saw a 53% rise in temporary work permits issued. (Excluding Ukrainian refugees, the figure would have been 27%.) These newcomers have helped fill labour shortages and reduce job vacancies, particularly in manufacturing, utilities and construction. However, the healthcare and construction sectors still face significant labour shortfalls.

Although the influx of refugees is anticipated to decelerate, the aging of Canada’s population will heighten the need to replace retiring workers. Maintaining or exceeding pre-pandemic levels of newcomers, including non-permanent residents, could help fill the gaps. Aligning newcomers’ skills with labour market needs will be vital in addressing persistent labour shortages.