What is The Economic and Social Impact of Immigration on Canada?

| January 4, 2018 | 0 Comments

ImmigrationCanada is among the countries which have come into existence only due to immigration. However, those were the early Europeans who came in search of resources and opportunities and settled here, later on forming a sovereign state.

During 1870’s Canada’s population was near about 3.6 million, which is in 2017 near nearly 35 million, a tenfold increase. This increase attributed to the immigration friendly governments, which adopted policies to welcome immigrants to harness their real economic potential, and they continue to do so even today.

With such a significant demographic change by immigration, there have been profound economic and social impacts of the people of Canada and Canada itself.

Economic impact of immigration in Canada

While the economic impact of immigration has been subject to mixed views, one thing that can be realized is that Canada would not have reached its full potential if it were not an immigration-friendly nation.

Gross social impact of immigration on the economy of Canada can be analyzed by segmenting our focus on different factors of the economy:

  • It has helped Canada tackle the inefficiencies caused by their continually aging population. The aging population is furthermore supplemented by low birth rates and fertility that is well below the natural replacement ratio. According to many studies, for Canada to sustain their economy, it will have to accept 450,000 immigrants per year, an estimated 150% increase.
  • Canada being a vast country, and being a major supplier of raw materials in the world market, continually requires workers. This requirement has so far been satisfied by migrated laborers. Historically, as well, there were Chinese and Indian workers during the imperial age, who were employed for such tasks.
  • The effect on the wages is another crucial factor. It has been found statically that for every 10% rise in population due to immigration, wages in Canada are reduced by 4%. It is attributed to the fact that immigrants are usually paid less as compared to the native counterparts
  • Unemployment rate for immigrants was 11.5% in 2006, well above the national rate of 4.9%. However, with experience, it steadily decreases.
  • According to Fraser Institute in British Columbia, instead of gaining from immigrants, the Canadian economy loses about $5000 per immigrant per year.
  • While it can be a case in the countries with limited resources, that immigrants steal the jobs of the local populace, in countries like Canada, immigrants have only helped create new jobs and economic opportunities.

Social impact of immigration in Canada

With the massive volume of immigration every year, Canada has experienced a change in their social culture, which though is influenced by the European culture, has touches of Indian, Chinese and other such countries from where migration has been more.

Due to their immigration friendly policy, there never has been a national identity type of scenario, and that has made the more tolerant and progressive society.

Level of education among the immigrants is usually very high. Immigration consultants Toronto has found that most of the migration seekers are highly qualified.

With most of the immigrants coming with college degrees, it has helped Canada to be a modern knowledge-based society.

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