Canada’s immigration policy shift could lead to economic slowdown

Recent changes in Canada’s immigration policies aimed at reducing the temporary resident population could potentially result in a shrinking labour force and economic deceleration, according to economists. A Bank of Nova Scotia report suggests that Ottawa’s efforts to decrease the number of temporary residents, which reached a record 7.3% of the total population in July, might be an “over-correction.” The bank’s economists predict these policy shifts could lead to a 1% contraction in Canada’s labour force over the next two years, potentially weakening economic growth if businesses fail to boost productivity accordingly.