Four Scenarios
The study evaluates four scenarios that Canada can use to fill this gap. The counterfactual scenario assumes that Canada will have no immigration in the period from 2018 to 2040. Others assumed the results of an increased labor force and immigration level of one percent. Groups that experience large and chronic gaps in representation include people with disabilities and indigenous people.
According to the study, a fourth scenario that consisted of increasing immigration levels and improved participation of women, people with disabilities, and indigenous people would be the best way forward for the country. If this scenario plays out the right way, it may lead to an increase of almost six million workers. This number represents the annual labor force growth from 2000 to 2017. This scenario is not only important for the development of the Canadian economy but also for the diversification of the labor force.
The 1% Immigration
According to the study, immigration that reaches a yearly rate equal to 1% of Canada’s population will continue to be a formative solution for the coming labor market. According to the study, the size of Canada’s labor force will stand at 23.3 million workers in 2040 which is an improvement from 2018’s 19.8 million. If the Canadian government promotes the inclusion of people with disabilities, women, and indigenous people, the country may benefit from an increase of about 2.2 million workers by 2040. It may also earn over $100 billion to the economy.
The research concludes that the government should consider the inclusion of under-represented groups into the labor pool. Under-represented groups may lead to significant improvement in the economy.
