Commission on the Reform of Ontario's Public Services

Chapter 10: Immigration
The Economic Importance of Immigration
Chapter 10: Immigration
Immigration has long been a key element of Canada’s and Ontario’s labour-market policy.
Ontario’s population is aging and fertility rates remain low. Consequently, immigrants will
constitute a rising proportion of population growth. Within this decade, immigration will account
for all net growth in the working-age population. By attracting skilled workers from abroad,
Ontario can better address potential labour-market shortages. Maintaining labour-force growth,
aided by successful immigrants, can help sustain Ontario’s long-term economic growth.
Lower levels of immigration would result in significantly slower growth in the working-age
population. For example, according to the Ontario Ministry of Finance, if immigration averaged
about 70,000 per year (which is about half the population projection reference scenario
of 139,000 per year), Ontario would have 1.4 million fewer people in the 15–64
working-age group by 2036 available to contribute to the economy and pay taxes.
On the other hand, if immigrants are unable to use their skills and education, their
contributions to the Ontario economy cannot be fully realized. There is considerable
concern about the deteriorating economic outcomes among recent immigrants over the
past two decades. In short, future trends in immigration and the degree to which Ontario can
successfully integrate new arrivals into the province’s labour market and social fabric will
have a significant effect on Ontario’s fiscal fortunes.
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