Immigration In Canada

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The macro principle of growth rate has great significance to policy creators and governments of all nations as it gives an estimate of how much growth or shrinkage a nation might experience in coming time. A nation such as Canada where the fertility rate is low, immigration is responsible for keeping the growth rate up. As immigration is an essential aspect of Canadian growth, it is important to critically analyze the pros and cons of immigration and the resulting productivity. In order to complete the analysis, it is also pertinent to compare immigration and fertility rates to see how they contribute to GDP.
There are multiple factors which contribute to the decline of fertility rates in Canada, which also lowers the national growth rate to …show more content…
One pro of immigration is that it promotes technological progress, in the sense that a higher population means a higher number of engineers, inventors, and businesspeople. Skilled workers from third world countries are more like to migrate to first world countries such as Canada so that they can enjoy a higher standard of living. There is also another pro to continued immigration is that it keeps Canada from economic downfall. Immigration can hold back against economic downfall and create labor demand in one way that immigrants themselves accept lower wage jobs which in turn leaves natives of the country to bargain for higher paying jobs. A downside to immigration is the “brain drain” it causes in other countries, for example, “In Granada, Haiti, and Jamaica, the skilled emigration rate is above 80 percent. In Africa, Cape Verde has a rate of 68 percent.” . This leaves many poor countries with a diminishing skilled labour force and a sort of growth cap, as majority of its skilled labour has migrated. Capital stock can experience dilution as well too, which occurs from high population growth, which immigration can lead to. Diluting capital stock is a theory which says high population growth can reduce GDP per worker because there is rapid growth of the work force. Another con to an increasing population is that natural resources will experience stretching because a larger …show more content…
Because Canada is in a point of time where fertility rates are at a low, and immigration is high, in result, Canada is harnessing more productivity than thought. A study done by “Human Resources and Skills Development Canada” created a model where Canada would bring in more high-skilled immigrants. The result of this policy in place, productivity and productive capacity is raised. The study used the equilibrium models to simulate scenarios such as low immigration policy and high immigration policy. The study found out that bringing in more immigrants can mean more highly productive workers, thus raising Canadian productivity, “immigration policy targeted towards high skilled immigrant workers…boosts labour productivity and raises the productivie capacity of the Canadian economy.” . This study, along with the low fertility rates in Canada, and high immigration into Canada shows that an increased amount of immigration has an impact on productivity here in
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