The Conference Board of Canada releases a news 2017 report that states that Raising the current level of immigration to Canada in an annual intake of 300,000 immigrants could greatly help Canadians overcome the mounting challenges posed by an aging population and low birth rate.
Using the current annual rate immigrates arriving to Canada is 0.82 percent of the population as a base, the study predicted that with the latest changes in Canadian demographics a higher percentage of consumption, 1 percent, and 1.11 percent, would affect the population of Canada, its population aged 65 and over, for workers – the ratio of the parties, GDP, GDP per capita and health expenditure.
The projections were made assuming the composition of immigrants remains unchanged: 60 percent of an economic class, 28 percent in family class and 12 percent as refugees.
In the status quo scenario, the country’s GDP, or economic performance, would grow at an average annual rate of 1.85 per cent between 2017 and 2040.
In 2016, people age 65 and over made up 16.5 percent of Canada’s total population. The share will continue to rise in the coming years, reaching 24 percent by 2040.
The country’s current natural population increase (births minus deaths) adds roughly 114,000 people to the population, but the report said it will progressively drop to nearly zero by 2033 as the number of deaths surpasses births.
The report says that immigration will begin to account for all of Canada’s population growth by 2033, assuming that the annual immigration rate remains around 0.82 percent of the population.
Under the status quo, seniors would reach 24 percent of the population by 2040, with the workers-to-retirees ratio dropping from 3.64 in 2017 to 2.37. Over the same period, aging will cause health-care costs to rise by an average of 4.66-percent annually, accounting for 42.6 percent of provincial revenues, up from 35 percent in 2017.
As Canada becomes more dependent on immigrants to meet its labor market needs (see Permanent Residence, Startup visa, Childbirth In Canada and Express Entry Programs), the success of its immigration system will largely depend on its ability to improve immigration outcomes in the labor market, expand its absorption capacity and improve public support for immigration.