Canada’s explosive population growth went from a boasting point to liability in less than 3 years. The Government of Canada (GoC) announced on Thursday they will be implementing a limit for temporary residents in the coming years. This comes as the economic boom driven by immigration fades, leaving behind an oversupply of labor and undersupply of housing.
Canada To Lower Temporary Resident Population Rate By 20%
Immigration minister Marc Miller has announced Canada will slow permanent residents. Over the next 3 years, temporary residents will be targeted at 5% of the population. Currently, this segment represents about 6.2% of the country’s population. That’s a reduction of nearly 20% for the rate. The cap is needed to ensure “sustainable” growth of the country’s economy, according to the minister.
Temporary residents are primarily those on work visas, which make up two-fifths of visas. The category also includes those on study visas, refugees, or special permits.
Canada’s Temporary Resident Boom Is Destabilizing Its Economy
Canada’s first ever immigration cap comes after explosive growth over the past few years. There are roughly 2.5 million temporary residents in Canada, roughly 150% more than the 1 million in the country in 2021. Part of this was due to the surge of study permits, following a rapid expansion of strip-mall colleges catering primarily to international students that pay multiples of domestic students.
The growth is increasingly being scrutinized—both domestically and abroad. Younger residents are struggling with housing, a problem the country now worries can destabilize its economy. The surge in population has also failed to boost the economy, with the number of unfilled jobs quickly shrinking as unemployment normalizes.
Canada’s new immigration announcement follows another made just a few weeks ago, placing hard limits on study permits. This year, the country will begin accepting a reduced number of students which will be capped at a provincial level. However, this only occurred after the appeal of studying in Canada faded, and application volumes slowed.
