Canada's Immigration Cuts Expected to Impact Economy

The Canadian government's recent decision to significantly reduce immigration targets, lowering the number of new permanent residents from 485,000 to 395,000 by 2025, has raised concerns among economists about its potential impact on the economy and population growth. Richard Saillant, a New Brunswick economist, termed this a 'massive U-turn', indicating that the change could lead to a historic population decline, affecting provincial budgets and economic strategies. Meanwhile, a report by Desjardins economists suggests that while the reduction may initially dampen economic activity, it could also lead to higher wage growth and lower housing costs. The Bank of Canada acknowledges that these immigration cuts could lower GDP growth forecasts, although the exact implications remain uncertain. Ultimately, the long-term effects could exacerbate labor force constraints due to a rapidly aging demographic. This shift in policy will require a more strategic approach to workforce development in New Brunswick and beyond.