Canada’s population growth rate has hit a fresh record, with 1.3 million people added over the past year, bringing the total population to 40.8 million. This growth has been primarily driven by immigration, particularly non-permanent residents like foreign workers and students. The growth rate of 3.2% ranks Canada among the world’s fastest-growing countries. However, future growth is expected to slow down as plans to reduce temporary residents and international students take effect. The surge in population has had both positive and negative impacts on the economy and infrastructure, highlighting the challenges faced by advanced economies relying on immigration for economic stability.
The population growth in Canada has been impressive for its economy, offering stability amid elevated interest rates. However, it has also strained the country’s infrastructure, worsened housing shortages, and led to soaring rents. The government’s plans to cut the numbers of temporary residents and international students indicate a shift in its immigration policy. Economists predict that these restrictions will significantly reduce the rate of annual population growth.
Canada added 471,771 permanent residents and 804,901 temporary immigrants in 2023, making it the second consecutive year that temporary immigration has driven population growth. It is estimated that there are 2.7 million temporary residents in Canada as of January 1. Most of them are work or study permit holders, with about 12% being asylum claimants.
One concerning trend highlighted by Statistics Canada is the low retention rates of temporary foreign workers in the country’s agriculture sector. Although some workers receive permanent resident status, most of them eventually leave the agriculture industry for other sectors. This poses a challenge for the agriculture sector, which continues to face chronic labor shortages.
Interprovincial migration has also played a significant role in population growth. In 2023, about 333,000 residents moved from one province or territory to another, marking the second-highest number since the 1990s. Alberta saw the largest net gain in interprovincial migration, while Ontario and British Columbia experienced a net loss of residents.
Looking ahead, the Canadian government’s decision to reduce temporary residents and international students suggests that the peak of the immigration-driven population boom has been reached. This development offers valuable lessons for other advanced economies that rely on immigration to stave off economic decline. It shows the challenges of balancing economic growth and maintaining quality of life in the face of population surges.
Sources:
https://timesofindia.indiatimes.com/world/rest-of-world/population-gains-in-canada-set-record-slower-growth-ahead/articleshow/108827524.cms
