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“I am a Canadian, free to speak without fear, free to worship in my own way, free to stand for what I think right, free to oppose what I believe wrong, or free to choose those who shall govern my country. This heritage of freedom I pledge to uphold for myself and all mankind.” ~~ John G. Diefenbaker

CD HOWE: Stop Assuming Immigration Will Solve Canada’s Labour Crisis


Canada’s expansive immigration policy from 2016 to 2024 has expanded the labour force but has also increased demand for goods, services, and infrastructure, more likely sustaining or even increasing overall labour shortages rather than easing them, according to a new report from the C.D. Howe Institute.

In “The Immigration Paradox: How an Influx of Newcomers Has Led to Labour Shortages,” Pierre Fortin explains that while higher immigration does benefit individual employers in urgent need of workers, these gains can be offset when the additional demand newcomers generate ripples through the broader economy.

Fortin’s research points out that surging immigration rates have increased overall labour demand. He finds that this demand often keeps job vacancy rates elevated, making it unlikely that rising immigration alone will alleviate nationwide labour shortages. He warns that this outcome, though counterintuitive, exposes a “fallacy of composition.” What works for a single employer does not necessarily hold for the economy as a whole ...

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