Canada caps immigration target amid housing crunch, inflation

The liberal government of Canada has announced that it will maintain its current immigration targets for the next two years. However, starting in 2026, the government plans to halt the increase in immigration as the country faces challenges such as high inflation and a housing crisis. Immigration Minister Marc Miller unveiled the plan in Ottawa, stating that Canada aims to welcome 465,000 new residents this year, followed by 485,000 in 2024, and eventually reaching 500,000 in 2025. The target of 500,000 will then be maintained in 2026 to balance economic and population growth with the strain on infrastructure and housing.

Canada has experienced significant population growth as a result of immigration, which has contributed to economic expansion. However, some economists argue that immigration has exacerbated the housing shortage in the country. On the other hand, immigrants also play a vital role in industries such as construction, which currently faces a labor shortage. The Bank of Canada acknowledges that immigration can both drive inflation by increasing demand and prevent labor costs from rising due to a larger workforce.

In 2022, Canada had its highest population growth since 1957, making it one of the top 20 fastest-growing countries globally, according to Statistics Canada. This growth helped offset the demographic challenges of an aging population and rising healthcare costs. Despite this positive trend, the Institute for Canadian Citizenship recently revealed that an increasing number of newcomers to Canada have been choosing to leave, which poses a challenge for a country heavily reliant on immigration for population and economic expansion.

The decision to maintain current immigration levels reflects the government’s intention to balance economic growth and strain on critical systems. Immigration remains a significant factor in Canada’s economic and population strategies, and these targets will help shape the country’s future. With continuing debates on the impact of immigration on various aspects of Canadian society, the government’s approach seeks to strike a balance between the benefits and challenges presented by immigration.

Reported by Wa Lone in Toronto and Ismail Shakil in Ottawa; edited by Steve Scherer and Deepa Babington