C.D. Howe Institute says immigration can't keep up with
retirees
Companion
Thu 05 Oct 2006

Page: 1
Section: News & Views
Byline: Sheryl Smolkin,
Editor-in-Chief
Source:

Contrary to a widespread perception, immigration policy can do little to help
Canada meet the public policy challenges posed by rapid population aging,
according to a study written by Yvan Guillemette, policy analyst, and William Robson,
president and CEO of the C.D. Howe Institute.

They say Canada would have to take in 2.6 million immigrants a year by 2020
and seven million by 2050 -- raising its population to 165.4 million -- if it
wants to keep its ratio of retirees-to-workers at its current 20%.

Between 2010-2030 the old-age dependency ratio will escalate dramatically,
putting significant pressures on public finances as an older population demands
increasing health and social services from a shrinking tax pie. By 2050, the
dependency ratio is expected to hit 46%.

"Although higher immigration can mitigate the imminent slowing down and
reversal in labour force growth, and can certainly meet specific labour-market
shortages, no conceivable amount of immigration with an age profile such as
Canada currently experiences can significantly affect the coming shift in the
ratio of older to working-age Canadians," the authors say.

Canada would be better off creating policies to increase the number of people
in the work force, raising the retirement age, encouraging people to save and
boosting productivity according to the C.D. Howe Institute.

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Story Type: News
Note:
Length: 222 words