In 2040, 25% of its population will have an age of 65 years or older. Moreover, the birth rate will be low, leading the country to rely greatly on immigration for meeting the labor requirements. It has the task of maintaining social infrastructure and strong growth, as per the report of Conference Board of Canada.
In the period from 2018 to 2040, 11.8 million people will conclude their school and also join the workforce. This is in comparison to the 13.4 million workers who will retire in that period.
Furthermore, the retirement rate in Canada is increasing. By 2030 9.2 million prominent workers will reach the retirement age. The study- Can’t Go it alone - has 57 pages, and says that Immigration is important for the Growth Strategy of the country.
The reality, in combination with low rate fertility, is leading towards economic and fiscal pressure. Canada also needs a solution for replenishing the workforce that will exit. A major labor force is a must to maintain as well as to stimulate economic activity. It strengthens the tax revenue to pay rising health-care costs also.
The government plans to have an annual immigrant intake of 350,000 by 2021. The figures are some 300,000 today and were around 250,000 in the last decade. The increase aims at lightening the impact of the baby boomers that are departing.
The persons with an age of 65 years or will account for 25 percent of the population, which is just 17 percent nowadays. Additionally, the birth rate is low standing at 1.5 births per woman. There is no possibility of its increase.
A better scenario
When there is an encouragement to add women, Indigenous people and disabled persons in the workforce, the net addition among workers will be 2.2 million only. Moreover, they can add $101 billion in the economy.
Immigration will be a major factor in the formation of a policy for the growth of the labor force and economy in Canada. When Canada raises the immigration rate to 1 percent of the population by 2030, (0.8 percent today), newcomers will contribute 5.3 million workers. Their share will be one-third, in the economic growth rate between now and 2040.We highlight such details and you can stay in touch for additional facts.