Reducing the number of temporary residents may harm Canada’s economy

An RBC Economics report predicts that reducing temporary immigration to Canada will harm the country’s economic growth and exacerbate the impact of the retiring Baby Boomer generation. A rise in immigration boosts both the economy’s capacity to produce more goods and services and increases demand for these products, says RBC senior economist Nathan Janzen. Slower population growth will decrease both the demand and supply of workers, affecting overall economic production and income. During the early years of the COVID-19 pandemic, temporary immigration to Canada tripled, according to data from Immigration, Refugees and Citizenship Canada (IRCC). The surge in immigrants led to housing affordability issues, prompting Immigration Minister Marc Miller to cap study permit applications at 606,250 this year, a 40 percent reduction.