It deals with the issue of Immigration that is important for the Growth Strategy of Canada. Furthermore, it considers many labor force scenarios between 2018 and 2040.
The period will witness reaching the retirement age of 9.2 million baby boomers. Moreover, the demand for the public -funded social services will increase in a big way.
25% of the population will have the age of 65 or above in 2040. At present, it is 17 percent.
Canada will face great pressure to fund health care for its senior citizens. 11.8 million Students will leave schools in this period providing a massive share for the workers and tax base. This figure will not comply with the figure of 13.4 million workers who will leave the labor force.
This study looked at many scenarios to overcome this gap. In the first scenario, there was a forecast for Canada without any immigration 22 years.
There was also a consideration of a one percent Canada immigration level. There was a demand for better labor force participation for women, Indigenous peoples and disabled persons which experience a big gap in representation of the labor force.
The study also had a scenario combining rising immigration levels and better labor force participation of the unrepresented sections. Additionally, this can produce a net increase in the labor force by adding 5.9 million workers. This scenario benefits the economy, and also promotes inclusive economic growth. There are other benefits of alleviating poverty and strengthening social inclusion.
Immigration will be a determining solution when it reaches an annual rate of one percent of the Canadian population by 2030. One percent of immigration accounts for 23.3 million workers in 2040 in the labor force. In comparison, it was 19.8 million in 2018.
A better labor force participation of the unrepresented sections of women, Indigenous peoples, and disabled persons will add 2.2 million workers as well as $101 billion to the economy by 2040. Such participation will lead to a growth of the labor force to 25.5 million by 2040.
The emphasis on unemployed/underemployed Canadians, cannot meet the requirements of the long-term labor market.
Considering the Canadians first, the figures reveal the absence of sufficient future Canadians to fulfill future labor needs. Apart from the Canadians, the country has to rely on immigration for driving the labor force and ensuring economic growth.
The Immigration Levels Plan of the Federal Government for the future three years responds to this demographic challenge and is an answer to the Canadian labor shortage. In its third year, it will reach an immigration rate of 0.9 percent through the programs of economic class immigration.
11.8 million Canadians who will leave the school and enter the workforce in the future will belong to the family of immigrants. The children of immigrants will become Canadians participating in the labor market. They give a bright performance and also help in the growth of the Canadian economy.We bring Reports, Surveys, facts, and news for our patrons. Please stay in touch.