Like a restaurant with a fresh Michelin star, Canada is suddenly tough to get into.
What happened: Canada’s population grew by just 20,107 people in the first quarter, as stricter immigration rules limited population growth to effectively 0%. Outside of the pandemic, that’s tied for the slowest quarterly growth rate since comparable record-keeping began in 1946.
- Temporary residents in Canada fell to ~3 million, or 7.1% of the population, down from 7.4% last year. Again, the largest drop on record outside of the pandemic.
Why it matters: Fearing that record growth was pressuring housing and social services, the feds last year made it their mission to cut immigration, implementing an international student cap and temporary foreign worker restrictions. The slowdown is a sign the mission is making strides.
- Population growth could soon slow even further. Debates began in Parliament yesterday over the proposed Strong Borders Act, which, if passed, could give authorities more power to halt immigration applications on national security grounds and deny more asylum claims.
Yes, but: It’s unclear how long Canada can slow its immigration roll without disrupting at least some sectors of the economy, which have grown heavily dependent on immigrants to replace aging workers.
Look at the residential construction industry, which already has struggled with prolonged labour shortages. Per the 2021 census, immigrants accounted for 20% of roofers, 23% of general contractors, 24% of construction managers, and nearly 41% of architects.—QH