Immigration Remains a Pillar of Canada’s Economy Despite Shifting Sentiments

Immigration has long been the backbone of Canada’s economic and cultural growth. Newcomers bring fresh perspectives, innovation, and skills to address critical labour shortages in key industries. Yet, despite the undeniable benefits, public sentiment toward immigration has shifted in recent years.

Amid these challenges, Canada must continue supporting immigrants who contribute significantly to its prosperity.

On This Page You Will Find:

• The Economic Importance of Immigration: Insights into how newcomers fuel Canada’s economy and address critical labour shortages.
• Shifting Public Sentiments: An overview of changing attitudes towards immigration in Canada.
• Policy Adjustments and Their Impact: Analysis of the government’s revised immigration targets and their economic implications.
• Immigrants in Essential Sectors: A breakdown of immigrant contributions in healthcare, construction, and transportation.
• Government Initiatives Supporting Immigration: Overview of programs like Express Entry, Global Skills Strategy, and the Start-Up Visa Program.
• Enhancing Support for Immigrants: Recommendations for fostering a more inclusive and supportive environment for newcomers.

Victor Dodig, CEO of the Canadian Imperial Bank of Commerce (CIBC), recently emphasized the critical role of immigrants in Canada. Speaking at a University of Waterloo event in Toronto, Dodig – himself the son of a refugee – highlighted the importance of treating immigrants fairly and with respect. “Immigrants are the lifeblood of our country,” he stated. “They come here with hopes and dreams and deserve to feel fully Canadian.”

Dodig’s comments come when many Canadians believe the country accepts too many immigrants. A recent survey by the Environics Institute and Toronto Metropolitan University’s Diversity Institute revealed that, for the first time in 25 years, most Canadians feel immigration levels are too high. This sentiment is primarily driven by a surge in temporary residents, including international students and foreign workers, whose numbers have risen sharply in recent years to fill nearly one million job vacancies.

Policy Adjustments

In response to these concerns, the Canadian government has adjusted its immigration targets. The federal government plans to reduce the number of new permanent residents from approximately 500,000 in 2023 to 395,000 in 2025 and 380,000 in 2026. While these reductions aim to ease pressures on housing and public services, economists warn that they may also slow economic growth due to reduced consumer spending.

Despite these challenges, immigration remains vital to Canada’s long-term prosperity. Statistics from Immigration, Refugees, and Citizenship Canada (IRCC) show that immigrants account for 75 percent of Canada’s population growth, with six in ten newcomers selected for their positive economic impact. By 2035, when five million Canadians are expected to retire, the worker-to-retiree ratio will drop to 2:1, underscoring the need for a steady influx of skilled immigrants to sustain the economy.

Driving Economic Growth

Several government initiatives aim to attract high-skilled immigrants and entrepreneurs to Canada. The Express Entry system, for instance, has invited nearly 230,000 skilled workers and former international students to become permanent residents since its launch in 2015. The top occupations for Express Entry immigrants include software engineers, information systems analysts, and financial auditors – professionals in high demand across Canada.

The Global Skills Strategy, introduced in 2017, has also been a game-changer for Canadian employers. This program fast-tracks the application process for highly skilled foreign workers, enabling companies to fill critical positions quickly. Over its first two years, the Global Skills Strategy created more than 48,000 jobs for Canadians and permanent residents and provided 12,500 paid co-op positions.

Another success story is the Start-Up Visa Program, which supports immigrant entrepreneurs in launching innovative businesses in Canada. Since becoming a permanent program in 2018, it has helped establish over 200 start-ups, contributing to job creation and economic diversification.

Immigrants in Essential Sectors

Immigrants play a crucial role in sectors facing significant labour shortages, such as healthcare, transportation, and construction. Statistics Canada breaks down the percentage of immigrants in some roles.

• Immigrants comprise 25 percent of registered nurses and 42 percent of nurse aides.
• Immigrants make up 43 percent of pharmacists and 37 percent of physicians.
• They make up 45 percent of dentists and 61 percent of dental technologists.

As Canada’s aging population increases the demand for healthcare services, immigrants will be indispensable in maintaining access to high-quality care. The transportation sector, which employs over 800,000 workers, relies heavily on immigrants, who account for nearly 34 percent of the workforce. With many employees in this sector nearing retirement, newcomers will be essential in keeping vital supply chains running smoothly.

In residential construction, a sector critical to addressing Canada’s housing challenges, immigrants represent 23 percent of general contractors and builders. They also account for 41 percent of architects and 40 percent of civil engineers, highlighting their importance in developing sustainable infrastructure.

Enhancing Support for Newcomers

While immigration policies and programs have driven economic growth, more must be done to support newcomers as they integrate into Canadian society. Dodig emphasized the importance of providing immigrants with the resources and opportunities to succeed. This includes access to affordable housing, quality education, and social services.

The government’s 2025–2027 Immigration Levels Plan reflects a commitment to balancing population growth with available resources. By focusing on economic-class immigrants and promoting the transition of temporary residents to permanent status, Canada aims to address immediate labour shortages while ensuring sustainable long-term growth.

Additionally, the plan emphasizes the importance of supporting Francophone communities outside Quebec, strengthening linguistic diversity, and boosting regional economies. New regulations also aim to better manage temporary residents, ensuring that international students and foreign workers can continue to contribute without overwhelming local infrastructure.

A More Inclusive Canada

Immigration is not just a solution to labour shortages but a cornerstone of Canada’s identity and economic resilience. As Dodig aptly stated, immigrants come to Canada with hopes and dreams, seeking to contribute to their new home. By providing the necessary support and fostering an environment of inclusivity, Canada can ensure that newcomers thrive and continue to drive the nation’s prosperity for generations to come.

In a world where immigration is often contentious, Canada can be a beacon of hope and opportunity. By embracing newcomers and recognizing their invaluable contributions, Canada can build a more inclusive, innovative, and economically vibrant future.

FAQ: Immigration and Canada’s Economy