New StatCan data marks shift in population's age structure
The recent immigration boom in Canada has continued to help decelerate the nation’s population aging amid public discourse over its impact on housing, infrastructure, and public services.
According to the latest data from Statistics Canada, the median age of the population decreased to 40.6 years from 40.9 years within the one-year period leading up to July 1, 2023.
The same period also recorded a reduction in the average age of the Canadian population, which fell to 41.6 years from 41.7 years.
This marked the first instance in 65 years where both the median and average ages decreased simultaneously, largely propelled by the influx of over 1 million immigrants from July 1, 2022 to July 1, 2023.
In its release, StatCan explained that it is rare for immigration to cause a noticeable change in the age structure of the population, given that this tends to change gradually over time. However, Canada had welcomed “a sufficiently large number of immigrants” during the period covered by the latest data.
The government has been actively pursuing a policy of welcoming working-age immigrants to offset the effects of an aging population and declining fertility rates. But while this strategy has led to population gains, it has also sparked debates regarding the strain on housing, infrastructure, and public services.
Stefane Marion, chief economist at the National Bank of Canada, said in January that the influx of new arrivals in 2023 has added complexity to the Bank of Canada’s efforts to control inflation.
“Were the last 50 to 75 basis points warranted when it’s all driven by a population surge which you can’t do anything about?” Marion told Bloomberg News. “I think the Bank of Canada misread the situation.”
Earlier this month, Immigration Minister Marc Miller said it is time to reconsider Canada’s reliance on temporary workers and international students. He has already reduced foreign student visas by 35% this year and also hinted at further restrictions on their work hours.
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