Canada, like other high-income nations, is grappling with a profound demographic shift as fertility rates decline and the population ages. This trend threatens to shrink the workforce and strain public resources, with fewer taxpayers supporting a growing retiree population.
Immigration has been a key strategy to mitigate these challenges. In recent years, Canada’s labor force growth has relied entirely on temporary and permanent immigrants. However, rising immigration levels have sparked public backlash, with many citizens blaming increased pressure on housing affordability and public services.
A new report by the Transatlantic Council on Migration examines whether immigration can effectively counter low fertility and aging populations—and at what cost. Using custom population projections from Statistics Canada, the study evaluates how different policy approaches impact demographic growth and infrastructure demands.
The findings come as Canada weighs the economic benefits of immigration against growing societal tensions, highlighting a delicate balancing act for policymakers.
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