For the first time in over a decade, Ottawa is planning to reduce the number of new immigrants entering Canada.
What happened: The federal government is cutting the number of people who will be granted permanent residency over the next three years. The original target for 2025 was lowered by 21% to 395,000 people, and in 2027 that number will go down to 365,000.
Catch-up: Canada has long bet on immigration to grow the economy as aging Baby Boomers leave the workforce. Last year, 97.6% of the country’s population growth came from immigration, totalling 1.27 million people — almost the entire population of Calgary.
- That surge has added strain to public services like hospitals and schools, driven the unemployment rate to a seven-year high, and contributed to housing shortages.
- With the lower immigration targets, Immigration Minister Marc Miller says Canada will have to build 670,000 fewer homes by 2027 to meet demand.
Why it matters: The new cuts could help alleviate the strain on public services, but the economy also relies on huge inflows of newcomers. According to a recent Scotiabank report, the immigration crackdown could cause Canada’s labour force to start shrinking.—LA