As the country grapples with high inflation and a housing crisis, Canada’s liberal government maintained immigration objectives constant for the next two years and stated it would stop ramping up immigration in 2026.
According to Immigration Minister Marc Miller, Canada is aiming for 465,000 new residents this year, 485,000 in 2024, and 500,000 in 2025, a number it hopes to sustain in 2026.
“These immigration levels will help set the pace of Canada’s economic and population growth while moderating its impact on critical systems such as infrastructure and housing”, Miller said in a statement.
While the delay in targeted immigration levels was justified given housing constraints and deteriorating public support, the Royal Bank of Canada stated that Canada will require immigrants in the long term.
The country’s top lender said in a report that the yearly immigrant intake of 1.3% of the population was insufficient to stabilize the population’s age structure, which would require immigration of roughly 2.1%.
Canada’s population has risen mostly through immigration, and this has aided economic growth in recent years.
Some economists blame immigration for increasing the country’s housing crisis, despite the fact that some immigrants work in labor-short industries such as construction.
As a result, according to the Bank of Canada, immigration has been both a driver and a damper on inflation, which stood at 3.8% in September.
More consumers lead to increased demand, which raises prices, but immigrants entering the workforce also help to keep labor costs low.
As per Statistics Canada, a significant inflow of immigrants helped Canada’s population increase at its fastest rate since 1957, placing it among the top 20 fastest-growing countries in the world, partially offsetting the effects of aging citizens who are retiring and adding to healthcare costs.
An increasing number of newcomers to Canada have chosen to depart in recent years, offering a challenge to a country largely reliant on immigration for population and economic progress, according to the Institute for Canadian Citizenship earlier this week.
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