Younger Immigrants Boost Hopes of Addressing Concerns of Canada’s Aging Workforce
Immigration of younger workers may be the solution for Canada’s aging workforce, as most new immigrants are between 25 and 54 years of age.
The Canada-born working population is on the decline
The national workforce of Canada is aging, as per the latest report by Statistics Canada. A record number of Canadians are approaching retirement age, and the number of aged people in Canada surpasses that of young adults. The issue is more critical because Canada has one of the lowest birth rates in the world because of a sharp decrease in fertility rates since 1997.
The aging population and low birth rates impact the labor market, putting a strain on public healthcare and pension systems. The country needs to offset the labor shortage by boosting the immigration of the younger workforce.
Immigration boosts the growth of the workforce
Immigration accounts for over 79 percent growth of Canada’s workforce. There is a growth in the employment rate of immigrants by two percentage points, while the employment rate of Canada-born workers declined by two percentage points.
Economy-class immigration contributes to over fifty percent of immigrants. They boost Canada’s economic development and address labor market shortages.
The age group of 25-54 represents the core working age. Over 64 percent of immigrants between 2016 and 2021 belong to this age group. Canada uses the Comprehensive Ranking System of Express Entry selection to boost the immigration of younger applicants. It assigns a maximum of 100 points to applicants between 20 and 29.
The average age of retirement is about 64 years in Canada. Canada’s workforce will benefit from the immigration of younger individuals for the next three decades, as the age of one in five immigrants is between 30 and 34 years.