Immigration highly important for Canada which has a low birth rate

Canada’s population growth is dependent upon immigration. It's true that ever since Canada's population became, 37.6 million in July 2019, immigration has been a hot topic. If we take into account, this kind of population growth, there has been an annual increase of 5,31,000 in the population of Canada.

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In 2018, Canada received 3,00,000 immigrants, a number which is expected to increase to 3,50,000 in 2021. Experts say that due to immigration, there can be easy funding for the pension scheme of the country. Immigrants are huge taxpayers due to which the health care system of the country is sustained. Immigration is necessary for Canada because the number of older people has increased in this country. The number of people aged a hundred years has increased by 200%. These people don't make any payments towards the benefits scheme but accumulate them.

Baby boomer population retiring now

Economists are now saying that the baby boomers, those who were born during the years, 1946-1964 are retiring now. Therefore, there are lesser people available to work in the labor force now, due to which businesses are suffering from a lack of labor. This is because Canada does not have enough labor force to supplement for lack of loss of labor caused due to aging.

There are about 1.5 children born in Canada which is less than the death rate of this country. So, Canada's population is decreasing.

Health care expenses are so much due to the older population of Canada. These expenses are also, very high. In the year 2017, health care was 35% of the spending by provinces and it's going to become 40% of the provincial expenditure by the year 2040. 

Higher provincial revenue because immigrants pay taxes

However, if immigration was going to increase, it would imply higher provincial revenue. Healthcare costs would decrease as part of the provincial revenue because the latter would increase. Health care costs would become a lower part of the increased provincial revenue(39.2%) in the year 2040. There is a big problem for the Canadian workforce which will lose its growth, a lot of people are set to retire but not so many people will become a part of the workforce. With the declining labor force, there would be an increase in wages. This is quite beneficial for the new labor which joins the labor force.

However, this does not imply wages are going to increase forever. The wages decline in the long term because businesses can't find the labor to sustain their growth.

There would be a highly adverse impact on economic growth. As per Parisa Mahboubi who works with the C.D. Howe Institute, "Without growth in the workforce, and a declining number of people in the labor force, it’s going to create labor shortages, and it’s going to affect economic growth,”

There will be a decrease in the workforce, due to which a low number of people will be working and taxes paid will be lower. Mahboubi has discovered that from the number of 4, there would just 3 people working under a manager in the future. Immigration can only fix this.

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