Immigration No Panacea for Canada's Demographic Woes: C.D. Howe Institute

    TORONTO, July 2 /CNW/ - While immigration has been a key driver of
Canadian population and workforce growth, it cannot, on its own, offset
demographic trends that threaten our future living standards, according to a
study released today by the C.D. Howe Institute.
    In Faster, Younger, Richer? The Fond Hope and Sobering Reality of
Immigration's Impact on Canada's Demographic and Economic Future, authors
William B.P. Robson and Robin Banerjee say current fertility and immigration
rates, moderately rising life expectancy, and historical productivity
increases can be expected to depress workforce growth, boost the ratio of
Canadians 65 and over to those of working age (the old-age dependency ratio)
and depress growth in incomes per person. Despite some popular commentary,
offsetting or even noticeably mitigating these trends through increased
immigration alone would require unrealistic increases in total immigration
levels.
    The authors show that several other measures to mitigate the impact of a
slower-growing and aging population on Canada's workforce and incomes hold at
least as much promise as changes to immigration. Delaying the normal age of
retirement could help both workforce growth and old-age dependency in the near
term. Higher fertility would help achieve both goals in the next generation
and beyond, and faster productivity growth would boost real incomes per person
more than any conceivable immigration strategy.
    For the study go to: http://www.cdhowe.org/pdf/commentary_291.pdf

For further information: William B.P. Robson, President and CEO, C.D.
Howe Institute, (416) 865-1904