Canada’s aging population, low birth rate and declining immigration are “reshaping” the Canadian economy, affecting the country’s workforce and demand for goods and services, according to the Bank of Canada.
uncertain
population → age → Canada
“In the coming years, fewer new immigrants will arrive.
asserted
immigrants → come → years
Canadians will also continue to get older.
asserted
Canadians → continue → ?
This will affect the size of our workforce, what we buy and how much the economy can produce,” the Bank of Canada said in an analysis published Oct. 8.
asserted
Bank → affect → analysis
“Less immigration will mean fewer workers and weaker demand for other goods and services.
asserted
immigration → mean → goods
The economy won’t grow as fast as a result.”
asserted
economy → grow → result
The report comes as Canada is expected to announce its immigration levels plan for 2027-29 by early November.
asserted
Canada → come → November
The plan breaks down the government’s targets for individual permanent and temporary residence programs.
asserted
plan → break → programs
In September, Prime Minister Mark Carney suggested in an interview with the New York Times that a “controlled increase” in population could be on the way.
uncertain
increase → suggest → way
To launch a new series, the Star spoke to temporary residents caught up in a numbers game and butting up against a system that once promised them
To launch a new series, the Star spoke to temporary residents caught up in a numbers game and butting up against a system that once promised them
asserted
that → launch → them
The Bank of Canada “may be worried about an upsurge in major anti-immigrant sentiment and is reminding Canadians that immigration has always been crucial and will continue to be crucial to our economic well-being,” said Jim Stanford, economist and director of the think tank Centre for Future Work.
uncertain
Stanford → remind → Work
Over the past two years, Canada’s immigration system has undergone a dramatic shift.
asserted
system → undergo → shift
After a decade of record-high immigration, and ramping up the issuance of study and work permits in the wake of the pandemic, seeking to address labour shortages and attract newcomers, the government reversed course, vowing to “take back control of the immigration system” amid rising anti-immigrant sentiment.
asserted
government → ramp → sentiment
Canada’s population grew by as much as three per cent a year in the early 2020s, which raised the number of workers and “helped ease labour shortages,” according to the Bank of Canada.
But now, not only has Ottawa let in significantly fewer international students and foreign workers since 2024, it has also pulled the rug out from under hundreds of thousands of temporary residents already in Canada.
uncertain
it → grow → Canada
The Liberal government began cutting the number of new permanent and temporary residents it would admit and tightening the rules for those already here.
asserted
it → begin → those
“The worst way to do immigration is to view immigrants as just-in-time workers who can be brought in when employers need them and kicked out when they’re no longer wanted,” Stanford said.
asserted
Stanford → do → them
For several decades, Canada’s birth rate has been below the level needed to replace the population.
asserted
rate → need → population
In 2025, population growth slowed to just 0.5 per cent, the slowest rate of growth in more than a century, the Bank of Canada report noted.
asserted
report → slow → century
Immigrants and non-permanent residents are often younger and come in as international students, who are more likely to participate in parts of the economy with labour shortages, such as restaurants and agriculture, “while highly skilled immigrants can bring skills and knowledge that are in short supply, in fields such as computer engineering,” the report said.
asserted
report → come → engineering
Their reduced numbers further accelerate the decline in much-needed labour supply amid a rapidly aging population, the report said.
asserted
report → reduce → population
“An aging population will change the goods and services we produce because older people have specific needs,” the bank pointed out.
And because older people spend more of their money on health care, this adds to demand for pharmaceuticals, adaptive living products and supportive home care services.
asserted
this → age → pharmaceuticals
It could also change how much governments spend on hospitals and long-term care, the report said.
uncertain
report → change → hospitals
Shamira Madhany, managing director for World Education Services Canada, said the focus of immigration has narrowed too much, shifting from long-term nation-building to short-term labour supply.
asserted
focus → manage → supply
This also means Canada is losing immigrants who study and work here, gain experience but leave because they can’t stay permanently.
asserted
they → mean → experience
Immigration is “about being intentional in planning and knowing who we need, preparing people before they arrive and making sure they can hit the ground running.
asserted
they → plan → ground
Our country needs immigrants.”
asserted
country → need → immigrants
The Carney government has prioritized developing major infrastructure and industrial projects, but “where is the labour to develop projects coming from, given the number of experienced people leaving?” she added.
asserted
she → prioritize → people
The Aporia
