Policymakers say increased immigration is needed to boost Canada’s economy and reduce labour shortages, yet population expansion causes growing pains. Canada increased by 700,000 inhabitants in a year, about the same as Mississauga. Canada adds a big city each year. The population has spread, especially to urban areas but also to suburbs and remote communities. They work, learn, and improve their lives here.
Canada’s population increased by 285,000, 0.7 per cent, from July to September, the highest increase since Newfoundland joined Confederation in 1949. Over the past year, Mississauga, Canada’s seventh-largest city, has gained 700,000 residents. The federal Liberal Party accelerated the trend. Since 2016, the country has expanded nearly twice as fast as its G7 peers. Immigration mostly drives that increase.
However, a population surge has growing pains. 220,000 homes were built last year. The greatest ratio since 1991 was 3.2 new inhabitants per home. Most places are losing affordability. The population boom is exacerbating the residential supply-demand gap.
Canadian governments struggle to provide fundamental services. Overcrowded hospitals cancel surgeries. Newcomers to Canada have trouble finding family doctors. Cash-strapped cities can’t fix their infrastructure quickly enough. People are fleeing cities due to affordability issues. Teachers, nurses, and construction workers manage those cities.
Ottawa accelerates in this tense situation. The federal government wants 500,000 permanent residents in 2025 after admitting 405,000 last year. Only part of the migrant wave: Last count, 1.4 million residents have temporary employment or study visas. Canada is adjusting. Due to rising loan rates and declining profitability, developers are cancelling or postponing home projects. If more homes are required, fewer are built.
How immigrants are building jobs in Canada despite challenges
Immigrants shield us from the worst political and economic risks. When so many social infrastructure pillars are failing, economists wonder why the federal government will increase service demand. They worry that Ottawa is too focused on immigration targets and not enough on assimilating newcomers.
The federal government says increasing immigration solves many of these issues. They want foreign physicians, nurses, and homebuilders. Recent immigrants waited years for entry. They arrive over decades of rising inflation and diminishing economic growth. Skilled immigrants should adjust well. Others are finding the Canadian dream expensive and possibly not what they expected.
According to the last census, a narrow majority of new immigrants prefer Toronto, Vancouver, and Montreal, but more are moving elsewhere. As migrants flood other cities, prices are rising fast. As per Rentals.ca data, the average rent in Calgary has increased 18% to $1,720 a month. London, Ontario, rose 26%. 21% Halifax. The affordability crisis makes it hard to recruit and retain key workers.
Aled ab Iorwerth, deputy chief economist of the Canada Mortgage and Housing Corp., mentioned that large cities face considerable economic risks if housing costs are not controlled. “These cities are becoming pricey, making it harder to attract qualified and even highly-skilled workers.” Huge work awaits. Canada would need to build 3.5 million more houses than planned by 2030 to return affordability to 2003 and 2004 levels, according to CMHC.
This year, the federal government pledged billions to double house building over the next decade. Higher borrowing rates kill that plan. Labor is another issue. CMHC reported a shortage of trained labour to build badly needed homes. Shaun Hildebrand, president of real estate firm Urbanation, stated, “Even under more ideal conditions, I don’t think we have the capability to construct at a rate that balances the demand through population increase that we’re witnessing.
