According to the statistics on gender and age based on the 2006 census, the Canadian aging population is growing fast, a situation that will see the group exit the workforce. In fact, the presence of longer life expectancy and low birth rates in the country has created this situation. The huge population in the workforce is due for retirement; hence, the policy makers and economists must implement significant changes in the country, which will avert the tendencies of economic stagnation in the next decade. The rationale for this paper is to present a persuasive discussion that elucidates the effects of increased immigration and the aging labour force to the Canadian economy and individual’s standard of living.
In Canada, the percentage of population below 15 years continues to decrease. Therefore, more people will leave the labour force than those who are joining the sector. Currently, the country is straining with the labour force with more challenges expected in the future. However, the solution to this problem may be found if the country continues to allow immigration. In this aspect, immigrants that are more skilled will be willing to take up the available jobs, a situation that will sustain the required numbers of people in the labour force.
The increased level of immigration will affect my living standard in several ways. First, the skilled immigrants will replace the retiring population, an incident that will have a profound impact on the production, which will consequently influence the economy. In essence, when the economic growth is recorded, the government will have adequate resources for its citizens. It will concentrate on the development agendas, insurance schemes, medical covers, inexpensive loans, and affordable mortgages, housing, income security, and social welfare among other things. Therefore, the general welfare of the Canadian citizens will improve. In addition, immigrants will enhance the growth of the labour force, address the shortages of skilled workers, increase productivity, reduce the ratio of older people in the population, and spur innovation. Under those premises, my living standards will improve because the country will close or reduce the existing gap in the labour force. Consequently, there will be an improvement in the economy because of the aggregate input, which will expand the output.
Finally, immigration is required because it will provide a new supply of labour, especially for certain skill shortages and for the unskilled labour. In Canada, there is a big shortage of unskilled workers because many individuals are not willing to take those jobs. Therefore, many jobs, including garbage collection, house chores, cleaning, and mechanics among others will be taken by the immigrants and in the process, improve my living standard because I will have someone to assist me in those duties. On the other hand, there will be an overall improvement of the economy because the level of input will increase in all sectors.
As is evident from the discussion, immigration may be a solution for the Canadian labour force challenges. However, it might not significantly affect the trends in the aging population because the new immigrants may have the same number of children as their Canadian counterparts. Therefore, the required generation expected to support the labour force in the future still may not be available. Indeed, what will improve the economy and standards of living is encouraging the retiring workers to stay occupied in the labour force, given that many of them are not ready to leave. Another important aspect is to encourage productivity in other sectors with smaller labour pool. For instance, to boost economic growth, the companies are required to be innovative, especially in adopting labour-saving strategies, equipment, machinery, and technology. Finally, if the immigration is the solution, the government must ensure that only the skilled immigrants with specific qualification required by industry are encouraged. In this aspect, the economic growth will be guaranteed and the living standard of the people will improve.
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