***This was an essay I wrote for my university class; but I think that it’s still relevant, and that this issue still needs to be addressed by our government***

Introduction

Canada has understood the important of immigration policies since 1869, when the first one was introduced. Since then, policies have shaped the country and in 1994, the CIC was established to organize the policies, handle their implementation and review immigrant applications (CIC, 2007). Policies in the past have generally been protectionist and controversial on how they discriminate and disallow certain people from entry. However, immigration policy has not be actively examined or changed since the 1960s (CIC, 2007), almost fifty years ago.

The majority of Canada’s population is aging and leaving enormous gaps in the workforce while countries such as China and India are experiencing unprecedented growth; a refined immigration policy for this new era would offset this disparity, keep Canada competitive in the international market and improve employee shortages.

Currently, the immigration policy is involved in protecting jobs, residents of Canada, and maintaining a certain standard of living by refusing immigrants; but, a new policy must be designed and implemented that reflects the current state of the country. As has been proved in recent years, immigration doesn’t harm a country (Luciani, 2004); it can only help alleviate the current predicament. If a more open, inviting policy is not adopted soon, Canada will be led to a market failure due to the increase in an aging population and the lack of a supporting population.

Baby boomers have long been known as the largest demographic of the western world. This segment has been the backbone of Canada’s economy for the last sixty years, and now they are beginning to retire from the workforce; however, during this same period of time, the birth rates have decreased to 1.6 per female, which is much lower, then the 2.1 replacement rate needed to sustain the population (Stats Can, 2007). This is true for many of the Western nations whose populations are in serious decline, while less developed countries such as Africa and India are experiencing tremendous growth (CIA, 2006).

The current immigration policy was last visited by politicians back in the 1960s, and continues to follow forty-year old regulations that do not take these truths into account. It relies on three separate classes of immigrants (CIC Canada, 2007): Economic, such as skilled workers; Family, relatives who wish to be reunited; Refugees, who fear for their lives.
Normative

If Canada is under populated, it cannot take advantage of the economic efficiency of a larger population. By increasing the number of people allowed into the country, this will maximize the amount of revenue the government receives, and ultimately stabilize the economy by supplementing the workforce. Also, by adding another option to the immigration policy, Canada can take advantage of a larger ‘pie’.

Positive

By allowing more immigrants to enter the workforce, the general voter population will be satisfied since essential services will be filled. The outcry that would’ve previously occurred would be replaced by praise from special interest groups advocating open immigration, landed immigrant families, and the business community who have been experiencing worker shortages. By approving this new policy, the business market will support government action due to the lack of workers compared to demand.

Economic Analysis

The immigration policy will simply slow, and hopefully halt, the declining population growth rate within Canada. By accepting new Canadians, the population will be able to continue to support itself, and prevent a market failure that would occur when the need for services was too great for the supply, driving the price of services to such a height that necessities would become a premium.

The current situation of labour shortages and an aging population demonstrates the inefficiency that is occurring from a lack of population growth. By introducing a new immigration policy, Canada will move towards a more efficient market and not waste time or money, which is occurring whenever a profession cannot be filled and a customer is forced to pay a premium due to a lack of supply.

Impact on businesses in Canada

By increasing the flow of immigrants into Canada, this will encourage augment the size of the market while also supplementing the workforce. Businesses will be able to function and provided needed (or wanted) services to the public. Businesses have changed their hiring practices to include “all age groups, from the senior citizen types, to those in their early teens who are looking for their first job (Trudeau, 2007).” Also, with such a lack of supply, wages are increasing to the point that businesses are closing, or becoming unprofitable (AHN, 2007).

Conclusion

The situation in Canada will only worsen if a solution is not presented to improve the growth rate of the country. There are only two options: The first is increasing birth rates, but this will take several years and a coordinated effort to recover to the replacement rate of 2.1 children per female, if it can be attained at all. The second is to revamp the immigration policy to allow more people into Canada to contribute to economy. This is the most achievable, and with a modernization of the policies that govern entrance to the country, Canada can fill the needs of its population.

It is recommended that a new immigration policy or addendum that adds a new class to the original three must be utilized: unskilled workers. Many of the job shortages being experienced in the country as Canada moves towards an intellectual services, is in the labour force. This includes drivers, trades, and food services. Occupations not requiring degrees that were previously filled by the baby boomers are empty as fewer and fewer Canadians are taking on industrial work.

By accepting unskilled workers, Canada can accept many more immigrants who can be trained for any segment of the job market, and fill the need. Training unskilled workers will be expensive for the government, but the wages that they will receive, and the need that they will fill with services will generate enough tax funds to supplement their education costs.