Immigration is Good for Canada
November 24, 2023
Immigration brings challenges but has advantages, writes Peter Watson.
Are the high numbers of immigrants to Canada causing us economic harm
The Canadian economy has a housing shortage and has a much higher rate of inflation than in previous decades. It is understandable that many wonder why.
Some say high immigration levels are adding too many people to our economy in too short a time. This issue is better understood because of a recent report by CIBC.
Housing costs for both rental and homeownership has increased because of the inflow of people to our country. The most significant increases in housing costs have been in the three provinces that have had the highest increase in population during recent years.
On the positive side, additional immigrants have added to our labour force and these extra workers have provided a disinflationary effect on our economy.
Canada’s immigration policy will affect the financial health of our economy as well as influence the financial health of Canadians. Immigration is an important topic.
The main issues around immigration are balancing the need to maintaining a growing population for the good of us all. The federal government has a history of targeting a specific number for immigration because of the advantages of a growing population to our economy.
The other issue that we as Canadians should consider are the humanitarian. Some immigrants are nor so much coming to Canada but fleeing their country because of war or other hardships.
And finally, the immigration issue should be considered including the impact of COVID-19. The world has been shaped by the global shut down. All economic issues, including immigration, should be considered by accounting to the impact of the pandemic.
Looking at our history, Canada is a country of immigrants. Much of our growth and prosperity is a result of intelligent hard-working people moving to our country.
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com