The surge in immigration linked to Canada’s declining productivity

Recent analysis suggests that Canada's rapid population growth, primarily driven by immigration, may be contributing to the country's declining productivity. While Canada leads the G7 in population growth, with a 3.2% increase in 2023, its productivity has fallen below mid-2022. The influx of immigrants, particularly non-permanent residents, has outpaced the growth of Canada's capital stock, resulting in a lower capital-labour ratio. This imbalance and the time it takes for new immigrants to reach wage parity with Canadian-born workers could hamper overall productivity growth. As Canada grapples with this economic challenge, questions arise about the long-term sustainability of current immigration levels and their impact on the country's standard of living.