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The Economic Impact of Curbing Temporary Immigration to Canada

Reducing temporary immigration to Canada may have adverse effects on the nation's economic growth, warns an RBC Economics report. Nathan Janzen, a senior economist at RBC, highlights the importance of immigration in expanding the economy's capacity and stimulating demand for goods and services. Slower population growth could lead to a reduction in both the demand and supply of workers, ultimately impacting overall economic productivity and income levels. Immigration, Refugees and Citizenship Canada (IRCC) data shows a tripling of temporary immigration during the early stages of the COVID-19 pandemic, albeit contributing to housing affordability challenges. In response, Immigration Minister Marc Miller has capped study permit applications at 606,250 for the current year, a 40 percent reduction.

For further insights into recent developments in Canadian immigration policy, take a look at our previous article titled "IRCC Announces Changes in Permanent Residence Fees." This article provides additional perspective on recent policy changes affecting immigration in Canada.