As Canada faces an aging population, a new report suggests that the country needs to increase immigration to balance the demographic. According to the report, the working-age population would have to grow by 2.2% annually through 2040 to maintain the same old-age dependency ratio as in 2022. To return to the average ratio between 1990 and 2015, the same group would have to grow by 4.5% each year. While the potential increase in immigration levels has sparked debate over whether the country can handle more newcomers, proponents argue that the labour market can absorb more workers and more working-age Canadians are needed to support the tax base. Last year, Canada’s population grew by over one million people, the fastest rate since 1957.
