Introduction
The implementation of relevant concepts of demographic policy in conditions of a population deficit is a crucial practice not only nationally but also globally. In his article, Passaris (2007) examines the dangerous consequences of the population decline in New Brunswick and analyzes the possible prerequisites for the development of the issue. Some crucial problems are addressed, which correlate with one another. They are a decrease in the birth rate, an increase in the number of the elderly population due to life expectancy growth, and the prevalence of citizens of retirement age over young people (Passaris, 2007). In addition to applying social steps to effectively address the gap under consideration, effective economic solutions can be proposed to remedy the current situation. This work aims to propose an action plan designed to eliminate New Brunswick’s demographic deficit to avoid dangerous consequences. The specifics of this location and its existing issues, in particular, a shortage of labor and a weak influx of immigrants, are considered the target areas of work.
Steps of the Plan
The analysis of potentially effective measures to address New Brunswick’s demographic deficit from an economic perspective involves utilizing appropriate criteria as the target areas of work. Oxborrow and Turnovsky (2017) pay attention to macroeconomic indicators as essential parameters that determine not only financial but also social aspects of the life and development of the population. Since Passaris (2007) mentions the labor market as one of the important factors influencing the problem, the criterion of employment falls within the scope of this topic. In general, when focusing on economic theory, one can propose the following steps as the elements of an action plan:
- Ensuring migration growth through stimulating international migration and providing favorable working conditions for foreign employees.
- Reducing the asymmetry of economic development by revising the existing norms and regulations of wages.
- Attracting investments in promising development sectors to create new jobs.
- Financing social programs to support young people and provide grants for topical startups and progressive projects.
- Establishing interaction with local trade unions to organize a system for attracting an additional workforce.
- Relaxation in tax legislation, in particular, introduces more loyal principles of taxation for immigrants.
- Expanding trade interactions with other regions and countries to create a sustainable flow of goods.
- Supporting local entrepreneurship by providing more business opportunities and freedoms.
- Establishing interactions with foreign social agencies to create programs for the exchange of experience and engaging foreign employees.
- Attracting the authorities’ attention to create a formal economic development program for the next ten years to increase budget stability and provide more social opportunities for the young population.
Ensuring Migration Growth
Failure to secure a steady influx of immigrants to New Brunswick affects its economic development and the lack of rejuvenation of the population. As Passaris (2007) remarks, many immigrants prefer to search for job opportunities in Western Canada. The creation of favorable programs for interaction with foreign employees is an urgent step to ensure a stable influx of labor, which, in turn, will have a positive effect on the demographic situation. The situation in the employment market will change for the better, and job shortages will be covered.
Reducing the Asymmetry of Economic Development
One of the potentially serious constraints on population growth is asymmetric economic development expressed in unequal pay ratios. This point is consistent with the previous one and aims to provide immigrants with favorable working conditions. According to Pisano (2017), with obvious gaps, foreign employees will choose more promising regions. Providing equal working conditions will eliminate the local population’s monopoly on jobs and create a supportive work environment. In addition, financial ambiguities will be avoided due to maintaining a legally correct remuneration system.
Attracting Investments
Investment capital is an important component of economic and, therefore, demographic development. Since New Brunswick is not a target region for many investors, this needs to be corrected by providing market participants with positive business prospects. Cooley and Henriksen (2018) argue that stimulating investment demand is a prerequisite for moving towards global trade and forging new partnerships. Without this measure, the region will not be able to develop an appropriate infrastructure to attract young people. Therefore, interaction with sponsors and investors is the key to population growth.
Financing Social Programs to Support Young People
The lack of targeted youth work is an oversight to be addressed. The allocation of budget funds for potentially profitable startups and projects involving modern technologies is relevant as a practice of creating business perspectives. Pisano (2017) states that economic growth is directly proportional to the innovations implemented within the framework of specific business objectives. This financial support can have valuable implications in terms of youth retention.
Establishing Interaction with Local Trade Unions
Since local trade unions have a global network, their involvement in the project to combat population shortages is promising. By creating multi-source publications and recruiting colleagues, individuals and teams can enhance New Brunswick’s image significantly, thereby implementing the aforementioned immigrant attraction strategies. In these conditions, there are more chances to spread the necessary information globally and encourage young people to try their hand at different spheres of work.
Relaxation in Tax Legislation
One of New Brunswick’s economic constraints is the current tax law. Passaris (2007) draws attention to this industry and notes that the number of the population and the share of tax profits are directly proportional, which is logical. The number of financially stable citizens able to replenish the local budget is steadily declining. Taking more loyal tax measures toward investors and other market participants can be an effective solution to overcome others’ reluctance to give a large share of the proceeds to the treasury. In the case of changes, more young employees are likely to be willing to work in the region.
Expanding Trade Interactions
Following the principles of the market, the economy involves expanding trade relations and drawing attention to New Brunswick as the province for successful businesses. Passaris (2007) mentions human capital as one of the main drivers of economic success, but without sustainable interactions, there are few prospects to increase the region’s reputation. Therefore, the optimization of the logistics industry is significant in the context of the stated issue.
Supporting Local Entrepreneurship
Focusing on the province’s business environment can have a positive effect on population growth as a result of economic progress. According to Pisano (2017), “the working-age population is not just workers for all the sectors, private, public or nonprofit, but also the innovators, entrepreneurs, executives and managers” (p. 130). This means that supporting entrepreneurship should be no less important aspect of economic development than social reforms. The bulk of tax revenue comes from the business environment, which explains the need to strengthen this sector to combat the population deficit.
Establishing Interactions with Foreign Social Agencies
As mentioned earlier, recruiting foreign employees is a potentially powerful step to improve New Brunswick’s economic stability while also fighting the problem of population deficit. In this regard, the local authorities can contact social agencies in different countries and send appropriate requests for employment in the province. Immigrants can accept the proposals of the local labor market positively and make a significant contribution to strengthening the economic base, thereby improving the demographic situation.
Attracting the Authorities’ Attention
The authorities can not only interact with other agencies but also carry out active socio-economic work in the province itself by paying particular attention to the problems of the youth. In case the working-age population sees the officials are interested in providing support, this will be an incentive to strengthen the employment market. As Passaris (2007) remarks, the current social and economic infrastructure is underutilized, which directly affects young people’s satisfaction. Targeted activities for the financial support of promising employees with the provision of convenient conditions for professional development are significant prerequisites for population growth and eliminating the issue in question.
Conclusion
New Brunswick’s demographic deficit is an acute problem for the province, and to address it, economic solutions are considered potentially effective measures, in particular, meeting the modern standards of the employment market and engaging immigrants. The presented action plan includes valuable steps to resolve the existing challenges and fill out the gaps at different levels. Economic resilience directly influences population growth, and to thrive in the province, various socio-economic measures need to be taken to create a vibrant business and trading environment in New Brunswick.
References
Cooley, T., & Henriksen, E. (2018). Demographics and long-run growth. VoxEU.org.
Oxborrow, D., & Turnovsky, S. J. (2017). Closing the small open economy model: A demographic approach. Review of International Economics, 25(1), 44-75.
Passaris, C. (2007). Province’s demographic deficit needs to be resolved. The Daily Gleaner.
Pisano, M. A. (2017). The puzzle of the American economy: How changing demographics will affect our future and influence our politics. ABC-CLIO.