Many people believe that immigrants are a burden to the economy, but this is not the case. Immigrants have always been a vital part of Canada’s economic growth. So, how do immigrants help the economy in Canada?

They contribute their skills and talents to the workforce, and they also contribute to the tax base, which helps to fund important social programs and services. They also play an important role in building a strong and diverse society.

How do immigrants help the economy in Canada

The number of people working and paying taxes to finance our public services, such as health care, is a measure of the Canadian economy.

Immigration creates a system in which Canada’s labour force increases each year. Employers would have difficulty finding adequate competent people to fill open positions if it weren’t for immigrants. Since Canadians are living longer and having fewer children, more people are retiring. This limits the pool of available Canadian-born workers.

By working, paying taxes and spending money on everyday items, immigrants contribute to our economy in a significant way.

Lets dive into how do immigrants help the economy in Canada.

Meeting the labour market's needs

Currently, some employers are having difficulty filling job positions with Canadian-born workers.

Immigrants are over-represented in the STEM workforce, making up around half of all STEM degree recipients in Canada. They have excellent scientific, technological, engineering, and mathematical (STEM) skills. In our information economy, these abilities are critical.

The most popular route to obtain permanent resident status for skilled temporary foreign workers is to apply to one of the skilled immigration streams through the Express Entry program.

Immigrants, both skilled workers and unskilled workers, are also often willing to do jobs that Canadians don’t want, filling an essential need in the labour market.

Filling temporary labour needs

Foreign workers who come to Canada on a temporary basis play an important role in our workforce. They assist businesses in filling labour needs when qualified Canadians or permanent residents are difficult to find.

Temporary workers contribute to the success and development of a wide range of sectors, including agriculture and agri-food, health care, and information technology.

magnifying glass looking at graphic candidates for a job

Support the ageing population

Working Canadians pay income taxes that help to finance health care and other services for retired people. In 1980, for every retiree, there were about 6 workers. In 2030, when 5 million Canadians retire, the ratio of workers to retirees will be shrunk down to 3:1.

With no newcomers to help meet the demands of an ageing population, future generations would have to pay more income tax per person in order to provide the same benefits that are available today for retirees.

Immigration is only one aspect of fixing this problem. It may assist us in keeping Canada’s economy expanding and maintaining our commitments to health care, public pensions, and other social services. The immigrants we’ve admitted in recent years are primarily young, with more than 80% being under the age of 45. This means they will contribute to the Canadian workforce for many years to come.

Sustaining Canada’s education

Every year, international students help to contribute over $21 billion dollars to the national economy through tuition and other necessary student expenditures.

International education is vital for Canada to maintain a long-term competitive edge. Students from other countries who study in Canada expose Canadians to new cultures and ideas. This encourages innovation and fosters important intercultural skills. If these students opt to immigrate to Canada by applying for permanent residency to Immigration, Refugees and Citizenship Canada (IRCC), they are aiding in Canada’s economic accomplishments.

International students represent:

  • 27% of all students enrolled in math, computer and information sciences programs
  • 19% of all students enrolled in architecture, engineering and related programs

A large number of students who study science, technology, engineering and mathematics will remain in Canada and develop their careers. They will help us build a stronger, more prosperous economy.

Boosting trade

A large number of immigrants are business-oriented. Immigrant-owned firms not only create employment for Canadians, but also assist in the strengthening of commercial ties between Canada and other countries.

Immigrants frequently desire items from their native country, which increases the range of imports available to all Canadian consumers. Immigrants are also able to export more as a result of their contacts in their native countries.

Smiling female small beauty salon owner

Immigrants improve our health system

Immigrants are generally young and economically active, thus they contribute more than they take in benefits throughout their life.

The 2016 Census revealed that over 335,000 immigrants work jobs in the health industry.

Immigrants settle in communities across the country

According to the 2016 Census, the number of immigrants who flock to small and mid-sized communities is increasing.

Over the last 15 years, immigration in the Prairies and Atlantic Canada has increased by more than 100%.

The Canadian government is assisting Francophone minorities in growing by encouraging Francophone immigration.

In 1997, Most economic immigrants settled in Ontario, British Columbia, and Quebec. In 2017, this number rose to almost 4 in 10.

Immigrants integrate fully into Canadian society

Though it may take some time to adjust, eventually immigrants who come to Canada will have voting rates and earning levels that match Canadians’, as well as a sense of belonging.

A large majority of newcomers to Canada become citizens– approximately 85% to be exact. This rate is one of the highest naturalization rates in the world which contributes to Canada’s population growth.

PGWP extension 2023

What are some of the challenges faced by immigrants in Canada

Immigrants face a number of challenges when they come to Canada. One of the biggest challenges is finding employment. They may also have difficulty adjusting to the Canadian workplace culture.

Immigrants also face challenges when it comes to integrating into Canadian society. They may not have access to the same social programs and services as other Canadians, and they may feel isolated or marginalized from mainstream society. It can be difficult for immigrants to learn English or French, and some may experience discrimination or racism.

One of the best ways to help immigrants integrate into Canadian society is to provide them with access to social programs and services. This includes things like healthcare, education, and employment assistance. By providing immigrants with the resources they need, we can help them to become productive members of Canadian society.

Another way to facilitate immigrant integration is through language training. Many immigrants find it difficult to learn English or French, so it’s important to provide them with access to language classes. This will help them to communicate more effectively with Canadians, and it will also make it easier for them to find employment.

Finally, we can also promote immigrant integration through community outreach programs. These programs provide immigrants with opportunities to connect with other members of the community, which helps them to feel less isolated and marginalized. By building strong relationships between immigrants and Canadians, we can help to break down the barriers that often exist between them

Overall, there are many challenges faced by immigrants in Canada. However, with support from the Canadian government and community organizations, most immigrants are able to overcome these challenges and make a positive contribution to Canadian society.

Conclusion

Though it may take some time for immigrants to adjust, they eventually become productive members of the Canadian workforce. They also contribute to the tax base, which helps to fund important social programs and services.

Immigrants face a number of challenges when they come to Canada, but with support from the government and community organizations, they are able to overcome these challenges and make a positive contribution to society as a whole, proving that Canada’s immigration system works.

We hope our answer to how do immigrants help the economy in Canada was helpful. If you need any assistance with moving to Canada, get in contact!

For more information about moving to Canada, you can read our 12 reasons to move to Canada.