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Stop Assuming Immigration Will Solve Canada’s Labour Crisis

The Immigration Paradox: How an Influx of Newcomers Has Led to Labour Shortages


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.

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