Canada’s recent immigration increase, seen in permits and residency programs, may initially present challenges but will likely result in long-term economic gains. Canada admits about 500,000 new permanent residents yearly, making up 20% of the population, and temporary residents reached 2.5 million in 2023. Studies show job market strength boosts immigration. BMO economists believe high immigration benefits Canada’s tight job market and an aging workforce, maintaining employment growth and labour balance. However, the current housing crisis is tied to the surge in temporary residents, prompting a cap in 2024. Despite hurdles, past immigration increases have brought long-term economic benefits after initial slowdowns.
