Immigration vs Canada’s Popular Opinion: Digging into the Real Value Immigrants Bring

Beneath these concerns, there’s an uncomfortable truth that Canadian residents need to be aware of – in fact, we’d say there should be a clear, national discussion about it. Canada’s ageing population ‘problem’ has previously been solved through high levels of immigration. If that’s not going to continue, then Canada has to adopt other solutions.  

So, what’s the issue?  

Well, all of those solutions are deeply unpopular.  

In other words, Canada’s immigrants are essentially ‘saving’ Canada’s residents from having to make other hard changes.  

Let’s dig into this to make sense of it all.  

Key Takeaways 

1. The CD Howe Institute recently published a piece discussing ‘Balancing Canada’s Population Growth and Ageing Through Immigration Policy’. If you ask us, it’s essential reading!  
2. Canada’s aging population and historically low fertility rate (1.26 children per woman) mean Canada needs to make some changes if it wants to support its population as they age. 
3. Immigration significantly contributes to population growth, as well as innovation, economic diversification, and cultural enrichment. 
4. If immigration stays low, Canada’s options to support its ageing population are unpopular—higher, debt, raising taxes, delaying retirement age, reducing services, or promoting higher fertility rates. 
5. Many Canadian residents don’t understand how the pressure to reduce immigration impacts their future. We think it’s (past) time to raise awareness of how today’s immigration decisions impact tomorrow’s lifestyle in Canada.  

Understanding Canada’s Ageing Population Problem 

An ageing population is a big challenge for Canada because it means more people are retiring than entering the workforce. This shift puts extra pressure on healthcare resources (which are already strained) and pensions, as fewer workers work (and pay taxes) to support the growing number of seniors. As more people retire, the cost of providing healthcare and pensions rises. This is the root to Canada’s ageing demographic issue – and it’s why the solutions are raising taxes, increasing the retirement age, improving fertility rates – or inflating the number of workers paying taxes through immigration.  

Another angle is that an older population means fewer younger people are available to fill jobs, creating labour shortages. With fewer workers, Canada’s economy could slow down, leading to less innovation and fewer opportunities. This is especially true since Canada is already facing issues improving productivity. Without finding ways to balance this, Canada risks facing lower living standards and economic struggles in the future. 

Immigration is (and has been used as) a solution to delay the impacts of Canada’s ageing population from being felt.  

How Immigration Helps to Solve the Ageing Demographic Issue in Canada 

Newcomers to Canada are typically young and ready to enter the workforce (or to enter the workforce soon in the case of international students). So, Canada bets that many people who come to Canada will soon be paying taxes, which helps to pay for Canada’s healthcare and other social services.  

Immigration also offers a range of secondary benefits. Newcomers are more likely to have children than Canadian-born residents, for example, which means newcomers are helping to provide Canada with the next generation of workers (from an economics perspective).  They’re also more likely to start a business or side hustle (which again means more taxes).  

Unpopular Opinion: These Are The Options if Immigration Slows in Canada 

Since immigration has been a massive piece of the puzzle when it comes to overcoming the ageing population problem, Canada should be carefully considering its other options if it plans to keep immigration levels lower. The issue is: the other options are not going to be popular with Canada’s residents: 

• Increasing taxes: Higher taxes could offset demographic costs but are politically unpopular and economically burdensome. 

• Delaying retirement: Raising retirement age to 70 or beyond could stabilize the workforce. Canadian residents have demonstrated significant distaste for this option. It is incredibly unpopular.  

• Higher debt levels. Japan has one of the oldest demographics in the world and similar tax rates to Canada. So how does it manage providing for is ageing population? Higher debt levels.   

• Reducing public services: Cutting healthcare, pensions, or social supports could reduce financial strain but negatively impact living standards and societal stability. 

• Boosting fertility rates: Policies promoting higher birth rates through free or affordable childcare and extended parental leave are options, but they have rarely succeeded in substantially reversing demographic trends internationally. 

Since all the other options are unpopular, Canada likely needs to balance its immigration policy with making other changes to domestic policies.  

But, it’s government seems to be going the other way. Both the conservative and liberal parties promised tax cuts this year in the Canadian election. And Canada’s previous liberal government under Justin Trudeau tried to increase the retirement age, but this failed and the government reversed course.  

What’s the Takeaway For Newcomers? 

We’ll be frank, it’s a tricky time to be a newcomer to Canada. With higher unemployment rates and a competitive job market, temporary and permanent residents are struggling to find work. Meanwhile, the tightened immigration policy and uncertainty surrounding the Express Entry draw schedule as well as some PNPs, there are plenty of people who feel hopeless and even hurt. 

We want to point out that, as a newcomer, there’s plenty to be proud about. You being here  (or hoping to come here) makes a significant impact on Canada at the economic and societal levels.  Whether it feels like it or not, you really do make a positive difference to Canada – and Canada is a much better place thanks to the immigrants who have come here already or who are yet to arrive.