Immigration: A Cornerstone of Canada’s Economic Growth Amid Shifting

Perspectives

Immigration has consistently been a key driver of Canada’s economic and cultural evolution. By introducing innovation, diverse perspectives, and essential skills, newcomers have helped bridge critical labour gaps across multiple sectors. However, public sentiment toward immigration has undergone noticeable changes in recent years, presenting challenges that Canada must address to maintain its prosperity.

The Economic Significance of Immigration

Newcomers play a pivotal role in sustaining Canada’s economy. They contribute to population growth, innovation, and the workforce needed to fill labour shortages in essential industries. According to Immigration, Refugees, and Citizenship Canada (IRCC), immigrants accounted for 75% of the nation’s population growth, with six in ten selected for their economic contributions. As the retirement of five million Canadians looms by 2035, immigration remains indispensable for maintaining a healthy worker-to-retiree ratio.

Victor Dodig, CEO of the Canadian Imperial Bank of Commerce (CIBC), underscored this importance during a University of Waterloo event in Toronto. A child of refugees himself, Dodig emphasized the need to treat immigrants with fairness and respect, stating, “Immigrants are the lifeblood of our country. They come here with hopes and dreams and deserve to feel fully Canadian.”

Changing Public Sentiments

Despite immigrants’ significant contributions, recent surveys reveal shifting attitudes. For the first time in 25 years, a majority of Canadians feel immigration levels are too high. This perception is fueled by the rising number of temporary residents, including international students and foreign workers, brought in to address nearly one million job vacancies.

Adjusted Immigration Policies and Their Impacts

In response to these concerns, the federal government revised its immigration targets, planning to reduce new permanent residents from approximately 500,000 in 2023 to 380,000 by 2026. While these changes aim to alleviate pressure on housing and public services, economists warn of potential economic slowdowns due to decreased consumer spending.

Immigrants in Critical Sectors

Immigrants’ contributions are particularly vital in sectors like healthcare, transportation, and construction:

• Healthcare: Immigrants comprise 25% of registered nurses, 42% of nurse aides, and 37% of physicians.
• Transportation: Nearly 34% of the sector’s workforce consists of immigrants, crucial for maintaining supply chains.
• Construction: Immigrants represent 23% of contractors and builders and 41% of architects, essential for addressing housing challenges.

Government Programs Supporting Immigration

Several initiatives have been launched to attract skilled workers and entrepreneurs:

• Express Entry System: Since 2015, this program has invited nearly 230,000 skilled workers, with top professions including software engineers and financial auditors.
• Global Skills Strategy: Introduced in 2017, this initiative accelerates the hiring process for highly skilled foreign workers, creating over 48,000 jobs and 12,500 co-op positions in its first two years.
• Start-Up Visa Program: This program supports immigrant entrepreneurs, helping establish over 200 innovative businesses since 2018.

Enhancing Support for Newcomers

While immigration policies have fostered economic growth, more must be done to ensure newcomers’ success. Providing affordable housing, quality education, and robust social services are critical. The government’s 2025–2027 Immigration Levels Plan focuses on:

• Promoting economic-class immigrants.
• Supporting Francophone communities outside Quebec.
• Enhancing temporary-to-permanent residency transitions.

Toward a More Inclusive Canada

Immigration is not merely a solution to labour shortages but a fundamental part of Canada’s identity. By fostering inclusivity and offering necessary support, Canada can ensure immigrants thrive and contribute to a vibrant and resilient future. As Victor Dodig aptly noted, newcomers arrive with hopes and dreams, seeking to build a better life. Recognizing their invaluable contributions is key to building a prosperous and inclusive Canada.

FAQ: Immigration and Canada’s Economy

Why is immigration crucial for Canada’s economy?
Immigration addresses labour shortages, drives innovation, and sustains economic growth. With five million Canadians set to retire by 2035, skilled newcomers ensure critical industries remain operational.

What are some key government programs supporting immigration?
Programs like Express Entry, the Global Skills Strategy, and the Start-Up Visa Program attract high-demand professionals, fast-track applications, and foster entrepreneurial growth.

How have immigration policies changed recently?
To balance population growth with infrastructure capacity, immigration targets have been reduced from 500,000 in 2023 to 380,000 by 2026.

What industries benefit most from immigrants?
Healthcare, construction, and transportation heavily rely on immigrants. For instance, 42% of nurse aides and 61% of dental technologists are immigrants.

How can Canada better support its immigrants?
Providing affordable housing, quality education, and social services, along with facilitating transitions to permanent residency, are vital for helping immigrants integrate and succeed.