Introduction
The economy, culture, and identity are frequently at the center of the immigration discussion. One of the globe’s highest immigrant populations currently resides in Canada. Although immigrants adapt more quickly in Canada than in other affluent European democracies, the country’s immigration policies have become very divisive. Even though a lot of the discussion focuses on cultural issues, it is evident that immigration has economic benefits. The claim that the influx of foreign labor has decreased employment or salaries for Canadians receives no support from various economic studies. Immigrants significantly contribute to the communities in aspects that go much further than their economic impacts. This paper concentrates on the positive economic effects of immigration in Canada, such as responding to the aging demographic, expanding the labor force, and providing potential entrepreneurs.
Dealing With the Aging Demographic
In addition to preventing depopulation, the influx of immigrants into regions with diminishing populations would also benefit the age structures of those nations. Typically, migrants are younger than locals in the host nation. Immigrants have a higher percentage of people who are working age than natives do. As a result, new immigrants boost the employment force’s size, reversing the natural decrease of the working population in Canada’s sophisticated economy, where individuals are retiring from the workforce at a quicker rate than newcomers are joining (Shafer et al., 2020). Additionally, a higher proportion of working-age immigrants could lower the age-dependence ratio, which is rapidly increasing in industrialized economies. Therefore, from a population perspective, an uptick in immigration patterns to Canada is preferred, particularly for young individuals.
Immigration would aid in reducing the rate of increase in the age-dependence ratio. The pay-as-you-go retirement schemes are becoming more challenging to maintain in Canada’s rapidly aging population, which has decreased from having ten working persons for every retiree to approximately 4 in a few decades (Shafer et al., 2020). Even though immigrants will eventually grow older, a sizable influx of young people in their prime will permit a smoother changeover throughout the years of maximum native mortality. Due to their higher birth rates than natives, immigrants contribute to the demography of sophisticated economies. In Canada, the overall fertility rate for Canadian citizens in 2020 was 1.40 children per woman, compared to 2.18 for immigrants (Shafer et al., 2020). Immigrants’ presence keeps Canada’s fertility rates close to replacement levels.
Expanding the Labor Force
Immigration impacts the workforce because it raises the number of workers in specific economic sectors. The need for workers is likely to rise due to immigration as more people become consumers, increasing market pressure for specific services and products. The economy can create additional products and services by expanding the number of individuals in the salaried labor force and the duration of hours workers operate. Due to the shortage and scarcity of labor and human resources in Canada, immigration is essential for supplying workers (Kaushik & Drolet, 2018). In Canada, immigrants employed in the workforce are more likely to be more educated and skilled. As a result, immigration enables the nation’s economy to draw in highly qualified people to fill job openings and increase tax revenues.
In Canada, the majority of businesses follow the conventional master-servant arrangement. This implies that the boss makes most decisions, and employees are expected to serve the interests of the business. However, some bosses misuse the authority this kind of relationship permits if it is not restrained. Since immigration significantly raises a company’s workforce, workers can increasingly organize and advocate for equitable treatment. Managers might not prioritize a single complaint, for instance, if they only receive one. However, managers will find it more difficult to ignore the problem if the business gets many complaints (Kaushik & Drolet, 2018). Human resource is, therefore, a key weapon for holding corporations accountable, thus providing a better working environment that motivates employees and increases productivity.
Potential Entrepreneurs
It is argued that because immigrants frequently arrive with little money, they are more motivated to try to build a living for themselves. Additionally, those prepared to relocate and labor for a foreign organization appear to be the most motivated and risk-takers, making them the more active workers. Young, dynamic immigrants are more likely to start enterprises that produce cutting-edge goods and services. The Canadian economy illustrates how immigrants came to Canada and established traditional businesses, raising living standards and expanding the variety of products and services available. An immigrant to Canada named Zahra Al-Harazi established a flourishing advertising and communications business in the country (Nkrumah, 2018). Al-Harazi is the Canadian Representative to UNICEF, the recipient of numerous entrepreneurial accolades, and gives business-related speeches nationwide.
Since they can drive the nation’s economic expansion, entrepreneurs are crucial in modern economies. They encourage new employment by developing new goods and services, accelerating economic growth. Furthermore, entrepreneurial endeavors increase productivity by introducing innovation to each part of enterprises and making the most use of already available resources. Entrepreneurs create new markets by providing fresh and improved goods, services, and technology. As a result, they contribute to increasing national income and creating new wealth that ensures that additional federal benefits can be provided to the people by the government (Nkrumah, 2018). Entrepreneurs not only provide novel company concepts but also encourage research and development, giving the government numerous sources of revenue.
Existing businesses frequently experience difficulty adjusting to new market circumstances and long-term changes, becoming stuck in their previous roles. They lack the capacity for creative destruction and cannot make the required internal modifications. Firms can be released from a locked-in situation with the assistance of new businesses entering the market and worn-out enterprises leaving it. Additionally, entrepreneurs can develop new industries and sectors that propel Canada’s future economic expansion (Nkrumah, 2018). Furthermore, by creating new enterprises, entrepreneurs amplify competition for long-serving firms. Healthy business competition is essential for a functioning economy. Economic fundamentals show that when businesses must compete for consumers, the result is cheaper pricing, better products and services, more diversity, and innovation.
Conclusion
People may immigrate for various purposes, such as career possibilities, fleeing a violent dispute, ecological conditions, academic needs, or reconnecting with relatives. The immigration situation in Canada results in economic growth as it deals with the aging demographic issue, increases the workforce, and provides potential entrepreneurs. Due to immigration, Canada will witness a decent balance as more of its citizens are leaving the labor force due to old age, and there are fewer young people to replace the retirees. Furthermore, immigration increases the labor force, which enables the government to get more revenue through taxes. Most immigrants are ambitious and risk-takers, which shows their ability to become entrepreneurs. Entrepreneurs facilitate economic growth by creating employment and providing quality services and goods.
References
Kaushik, V., & Drolet, J. (2018). Settlement and integration needs of skilled immigrants in Canada. Social Science, 7(5), 76-87. Web.
Nkrumah, A. (2018). Immigrants’ transitional entrepreneurial activities: The case of Ghanaian immigrant in Canada. Journal of International Migration and Integration, 19(6), 195-211. Web.
Shafer, K., Scheibling, C., & Milkie, M. A. (2020). The division of domestic labor before and during the COVID-19 pandemic in Canada: Stagnation versus shifts in fathers’ contribution. Canadian Review of Sociology, 57(4), 523-549. Web.