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Effects of Immigration on the Canadian Economy

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Effects of Immigration on the Canadian Economy

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  • May 2013
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Effects of Immigration on the Canadian Economy
Canada is known globally as the “nation of immigrants”. Canada’s current population is currently almost 35 000 000 (34 957 572 and counting).1 Over 6 million (19%) of these are immigrants.2 Canada has a current immigration rate of 240 000 to 265 000 immigrants a year.3 Currently provinces Ontario, British Colombia and Alberta hold most of Canada’s immigrants, with 28% in Ontario, 27% in British Colombia, 16% in Alberta and the remaining 29% scattered throughout the country.2 Many Canadians believe immigration harms the economy as jobs are taken by immigrants. In reality immigration is very beneficial to the Canadian economy. Canada is highly reliant on immigration to keep its economy growing. Also immigration increases productivity. And finally, the biggest benefit of immigration is that immigrants increases demand.

In comparison to most developed countries, Canada has a very low population. With an area of 9 985 000 km2, it only has a population of 34 957 779.4The United States for example on the other hand has an area of 9 827 000km2 and has a population of 311 591 917.4 Like many other countries Canada also has a declining birth rate. Some reasons for this are, women focusing more on their careers, rather than starting a family, couples having children later in life as a result of delayed marriage, or have less children as not as many children are need (children were needed in the past to work on farms, and as many didn’t survive the first five years of life, couples had many in hopes some would survive), no longer need of male heirs, etc. Due to declining birth rates without immigration, Canada’s population would be increasing at declining rates. Immigration contributes greatly to the growing Canadian population. (Refer to figure 1) Canada has a current birth rate of 1.9* in comparison to the birth rate of Canada in 1960 which was 3.9 children per woman.5 (Refer to figure 2) 42.2% of the population is baby...

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