ICYMI – Don Kerr: The Liberals utterly failed to control Canada’s population growth. Here’s what the next government can do better 

Solid analysis but skimpy on what a population policy should look like:

…Although this estimate is preliminary and has yet to be finalized by Statistics Canada, this is likely close to what our population size would be if in fact the federal government meets its 2024 targets on both immigration and NPRs. In working with this estimate for Jan. 1st, 2025, this implies an annual population growth of about 780,000 persons in 2024, or a growth rate of 1.9 percent (see Figure 1). While down from the astronomical heights of 2023 (3.2 percent), this is still close to twice the historical norm for Canada.

In my view, it is almost an understatement to suggest that the federal government “opened the taps,” but then failed to close them quickly enough. As I have argued elsewhere, in policy terms, a steady, gradual upturn in population growth is far better for planning future labour force, housing, and infrastructure needs.

With this in mind, the government moving forward might be well advised to develop a population policy, in order to avoid this sort of situation in the future. The Canadian population would be well served by a government that could quickly accommodate unexpected challenges while maintaining a predictable and relatively stable rate of population growth.

Source: Don Kerr: The Liberals utterly failed to control Canada’s population growth. Here’s what the next government can do better

Kerr: Moving into uncharted waters: How Canada could benefit from a clearly defined population policy 

Seeing more articles advocating for a population policy, which of course would become the base for immigration levels, permanent and temporary. Of course, the experience of most countries that have tried to increase birth rates has been mixed at best, with few successful efforts:

…How quickly should Canada be growing?

Historically, annual immigration targets were set by cabinet based largely on a political judgment. After consulting with others, including the provinces, this was meant to be a sort of prudential assessment of what Canada can accommodate and what Canadians might accept. Up until recently, this assessment appears to have performed reasonably well. Yet in light of recent events, it might be prudent to return to my basic point—that the Canadian government should set out to establish a well-defined population policy—and perhaps in so doing, be somewhat more formulaic in its approach to immigration.

The first order of business would be to decide upon how quickly we want our population to grow, or whether or not we need an upper and lower limit. In reviewing our historical experience, it would be reasonable to propose a relatively wide range, of say, 0.5 to 1 percent annually. For comparative purposes, the average population growth rate across the current 38 members of the OECD in 2023 was 0.5 percent, whereas across G7 nations (excluding Canada) the corresponding average was 0.3 percent. An upper limit of 1 percent might seem somewhat high to some, but such a target is not far from the rate at which our population has grown over the last half-century. Over the extended period 1971-2015, Canada’s population grew at an average rate of about 1 percent annually.

The basic idea here is that our society works with a predictable rate of population growth, from year to year, that avoids all of the disruptions that could be associated with very rapid growth or for that matter, stagnation or population decline. In doing so, our economy and social institutions would have an easier time accommodating our rate of population growth—avoiding the disastrous situation observed over the last couple of years.

Success in reducing the NPR population translates into higher immigration targets

In setting future targets on permanent immigration, our success in reducing the number of NPRs, put simply, should be considered key in setting future targets on permanent immigration. The basic idea here is that to the extent that we reduce the number of NPRs, we can correspondingly increase the number of landed immigrants without having an impact on population size. In promoting permanent immigration, we can restore best practices in terms of carefully selecting immigrants based on economic immigration, family reunification, and humanitarian considerations. This involves returning to the Canadian tradition whereby newcomers are given the promise in settling in this country that they could eventually obtain the rights of full citizenship.

The earlier projection showed future growth with little change in the number of NPRs, remaining indefinitely at 5 percent of the population total from 2027 onward. In the projection, landed immigrant targets were set to gradually climb from about 365,000 to a figure approaching 400,000 over the next decade or so. Yet if the target on NPRs were reduced further, down for example to about 3.5 percent, this could allow for hundreds of thousands of additional landed immigrants without having an impact on our rate of population growth. Of course, many of the NPRs currently living in Canada will not be leaving the country, but alternatively could be selected for landed immigrant status through our normal immigration streams.

On this front, in planning future immigration targets, it makes sense to further reduce the NPR share of Canada’s population well below the 2027 target of 5 percent. Considerable caution would be advised as to how to achieve this target, with the difficult balance here in meeting shorter-term labour force needs, promoting the best in our international student programs while continuing with our long history of meeting humanitarian commitments with asylum seekers.

Flexibility in our targeted growth

It is very difficult to come up with a simple formula for setting immigration targets—such that a well-informed population policy would continue to closely monitor the impact of population growth and the successful integration of newcomers. A targeted range of 0.5 to 1 percent annual population growth is meant to allow for some flexibility in responding to many of the pressing economic and social challenges that we currently face. In recently announcing its revised immigration plan, the federal government indicated that its new plan would allow for “[c]ontinued GDP growth, enable GDP per capita growth to accelerate throughout 2025 to 2027, as well as improve housing affordability and lower the unemployment rate.” As GDP per capita has been stagnant for several years now, this might be considered a tall order. On this front, there are obviously many factors beyond demography that will impact their relative success. Yet this announcement is consistent with the idea that if our unemployment rate rises or if Canada fails with its current housing plan, it is reasonable to reduce immigration targets accordingly.

In light of the many problems in Canada that were aggravated by the most recent surge in population (six years of growth in two), from housing affordability to access to health care, it would seem justifiable to set a population growth rate closer to the lower part of this range. And in light of the projections shared previously, this would imply lower immigration targets than in the current Liberal plan—unless the federal government has more success than expected in reducing the number of NPRs.

Time for a broader population policy

One of the most widely misunderstood impressions with regard to immigration is that it serves as a panacea to population aging. Yet one of the lessons that we can gain from this most recent surge in immigration is that Canada’s population will continue to age for some time regardless of immigration targets. In July of 2020, the median age in Canada was 40.8. By July of 2024, this median had fallen slightly to 40.3. This is after a population surge of over 3.3 million in merely four years. While international migrants are younger than the average Canadian, an unsustainable number would be required over the longer term to meaningfully slow and reverse this aging trend. Canada’s population will inevitably age over the next several decades, and a well-thought-out population policy should certainly prepare for this basic fact.

Although our population is younger today than it would be without international migration, the primary factor responsible for population aging has been the continued decline in our birth rate. Statistics Canada has in fact projected the impact of a continued decline, such that we could experience a negative natural increase within only a few years. With this in mind, the instinct to further reduce immigration over the longer term without a rebounding of our birth rate might be somewhat shortsighted. Canada seems set to become even more reliant on international migration in maintaining population and labour force levels, such that we will eventually need to raise immigration targets substantially even to meet a lower limit of 0.5 percent annual growth.

A broader population policy could shift our attention to our birth rate, rather than merely a reflex action to increase immigration. The basic fact that birth outcomes in Canada continue to be lower than birth intentions, is in itself worthy of policy intervention. Without a rebounding in our birth rate, population aging in Canada will accelerate. Canada will become even more reliant on immigration in maintaining population and labour force—unless, of course, Canadians decide that slow growth and/or population decline is preferable. Yet while rapid population growth has its challenges, so too does a shrinking population. One merely needs to turn to the Japanese example to fully appreciate this fact. A well-informed population policy could attempt to avoid both scenarios.

Source: DeepDive: Moving into uncharted waters: How Canada could benefit from a clearly defined population policy

Don Kerr: Canada’s population growth is exploding. Here’s why

Good analysis but late to the party like a number of others:

As a professional demographer who has carefully followed Canada’s demographic evolution over the past three decades, I am shocked by some of the most recent demographic data released by Statistics Canada. From 1991 through to 2015, the year in which the current government was first elected, the annual growth in Canada’s population grew in a predictable manner at an average of roughly 320,000 persons per year. 

Following 2015, that growth has rapidly accelerated. Following a temporary dip in population growth due to the outbreak of the COVID-19 pandemic in 2020, Canada’s population growth reached just over half a million in 2021 (509,285 persons), close to a million in 2022 (930,422), and then an astronomical 1.27 million persons in 2023. 

Put another way, whereas for several decades Canada’s population growth rate hovered at about 1.0 percent annually, this rate has more than tripled in a few short years, up to 3.2 percent in 2023. 

In even starker terms, the 2023 rate of population growth is like adding a new Saskatchewan to Canada’s total population in slightly less than a single calendar year. As of 2023, there is not a single country in the G7 or in the OECD that has a population growth rate even close to Canada’s. Population growth in the U.S., for comparison, is currently at about 0.5 percent. Even prior to the recent upturn, Canada’s rate of population growth was actually the highest in the G7 and among the highest in the OECD. 

Most astoundingly, in making international comparisons, Statistic Canada now points out that Canada in 2023 is among the 20 fastest-growing countries in the world, ranked beside several very high fertility countries, largely situated in sub-Saharan Africa. While Canada’s current population growth of 3.2 percent is obviously not sustainable, a constant growth rate of 3.3 percent would imply a doubling in Canada’s total population in under 25 years.

The last time Canada saw a growth rate comparable to this was fully 67 years ago. In 1957, Canada was close to the height of its baby boom, with a birth rate close to four births per woman. Slowly over decades this growth rate gradually declined as fertility rates fell (no abrupt shifts here).1  

Most recently, Canada’s growth has almost entirely been the result of international migration (97.6 percent) as the rate of natural increase (births minus deaths) has continued to decline steadily. Hence, the pace at which Canada’s population grows, in a predictable manner, can be seen as a function of Canada’s immigration policy—meaning, then, that this is a policy problem that the federal government, in consultation with the provinces, can solve itself by setting and regulating immigration targets. This includes both permanent immigration (economic, family, and refugee classes) as well as the increase in non-permanent residents (international students, temporary work permits, and asylum claimants). 

The question remains as to how we have gotten into this situation in the first place. When Sean Fraser was first appointed to the Trudeau cabinet as immigration minister in the fall of 2021, Canada’s growth rate was roughly 1 percent. By the time he was shifted from immigration to housing and infrastructure in the summer of 2023, Canada’s growth rate had climbed to its current heights. As many commenters have pointed out, it is somewhat ironic that the minister appointed to fix the issue of housing affordability was the minister of immigration who allowed this unprecedented growth in population. 

In the summer of 2023 when Canada’s population was growing at a rate that had not been seen for almost 70 years, Fraser attempted to downplay the link between population growth and rising housing costs, saying that the solution to the country’s housing woes should not involve closing the door to newcomers. 

The data from both Statistics Canada and the Canadian Housing and Mortgage Corporation (CMHC) belie the minister’s baffling assertion. Canada’s demographic growth has clearly outpaced its housing stock. Coming out of the pandemic, housing starts climbed to 271,000 in 2021, the highest number recorded for half a century, only to drop slightly in 2022 and 2023. In total, Canada witnessed about 800,000 housing starts over the 2021-2023 period, whereas over this same period, Canada’s population grew by over 2.5 million. The fact that the CMHC forecasts fewer than 224,000 starts in 2024 and only 232,000 in 2025 does not bode well for housing affordability in Canada, particularly in the context of continuing rapid population growth. 

Having said all this, it seems that the federal government has finally woken up to this issue and is now committed to reducing this growth. Current immigration minister, Marc Miller, has made overtures towards slowing Canada’s population growth—even potentially back down to historically sustainable levels. Most importantly, Miller recently announced that the proportion of “non-permanent residents” (NPRs) in Canada will be reduced from its current level of fully 6.2 percent of the total Canadian population down to 5.0 percent over the next three years. For context, NPRs were only about 3.1 percent of Canada’s population in 2021. [mfnBy NPRs, the federal government is referring to international students, persons in Canada on temporary work permits, as well as asylum claimants.[/mfn]

As the government has already capped and reduced the number of international students, a sizeable share of this reduction will occur among persons with temporary work permits. Over 60 percent of Canada’s population growth in 2023 was a by-product of the increase in the number of NPRs. If immediately implemented, Canada could shift from admitting an additional 800,000 NPRs in 2023 to seeing a decline in the number of NPRs by perhaps -160,000 in 2024 (serving to reduce Canada’s rate of growth). Merely with this reform, and continuing with its current commitment to welcoming roughly half a million landed immigrants yearly over the next several years, Canada’s growth rate could return to sanity. The issue remains as to how successful the government will be in implementing this reform.

The dramatic shift in Canada’s rate of population growth has inevitably had important consequences, and not all of them positive. Take, for example, the increasing strain on the country’s already-burdened health and social services. In policy terms, a steady, gradual upturn in population growth is far better for planning future labour force, housing, and infrastructure needs.

Overall, Canada will be well served into the future by returning to and maintaining a predictable rate of population growth and avoiding the rather abrupt shifts experienced most recently. A majority of Canadians have long been supportive of Canadian immigration policy. The recent mishandling of this file has jeopardized this consensus. Hopefully not irreparably. 

Don Kerr is a demographer who teaches at Kings University College at Western University. From 1992-2000 he worked in the demography division at Statistics Canada.

Source: Don Kerr: Canada’s population growth is exploding. Here’s why