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A curated resource of recent research on trends shaping Canada's labour market.

Immigration Nation: New Canadians are vital to an aging society.

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Key Takeaway
As Canada's population ages, increasing immigration and better utilization of existing talent pools can power the country’s economy.

 

The COVID-19 pandemic severely impacted the flow of new migrants to Canada. However, these numbers are slowly rebounding as borders have re-opened and pandemic restrictions have eased. Given that low birth rates continue across the country, population growth through immigration has become an important driver of Canada’s economic success.

At the same time, tight labour markets also mean that immigration will be an important tool for balancing the exodus of aging workers against the increasing quantity of job vacancies. Newcomers to Canada already fuel nearly 100% of the country’s labour force growth, and they will be increasingly critical to fill persistent labour market gaps.

The authors argue that the key to success is to tap into the productive potential and available skills of immigrants and women more effectively. Boosting the contributions of these two groups can address long-standing equity concerns and improve Canada’s production potential in the long run.

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