Analysis of Aging and Underemployment: The Immigration Solution

The structural impact of aging on the labor market, on the competitiveness of the economy, labor shortages and the ability to grow should not be underestimated. And to mitigate the effects, all solutions should be explored and possibly used.

The problem is that when we talk about labor shortages and the aging population, which have a huge impact on the economy, the government responds with many promises, intentions, programs, reports and round tables, but the observation, annually, is not. change: labor shortages are growing and the effects of aging are more felt.

In the economy, these issues are structural and can cause long -term damage. These are issues that do not attract political discussion. They are complex, difficult to explain and some solutions, especially immigration, usually remain in all sorts of partisan confrontations with the National Assembly that do not move us forward.

Quebec structural problems

The immigration solution to tackling the labor shortage and the aging of our population is not just one, far from it. And it has its share of challenges. But, despite the aggregation issues, it cannot be dismissed. We need to work with the integration of immigrants for this solution to work.

Why am I writing this? Because Quebec is struggling with structural problems that could slow its economy and affect the necessary funding of the health system, our schools and our social services, as well as the care of our seniors.

Statistics Canada data speaks for themselves:

• In Quebec, among the most populous provinces, we saw the highest proportion of people aged 65 and over, at 20.6%;
• The proportion of people aged 65 and over will increase to almost 26% in 2043 compared to 23.7% for the Canadian average;
• Quebec’s demographic weight in Canada will increase from 22.6% in 2018 to range from 20.1% to 20.6% in 2043 according to several scenarios explored. Meanwhile, in Ontario, that share will drop from 38.6% to approximately 39.3%;
• And people in the process of retirement, 55-64 years old, represent 23.2% of the working-age population in Quebec, compared to 21.8% for the country as a whole.

According to Statistics Canada, international migration is the main driver of growth in Quebec in all situations and pays for a negative or declining natural increase during the projection period (due to population aging) as well as losses in interprovincial terms migration in all situations.

In other words, without immigration, population growth in Quebec would remain slower than elsewhere. And this fact represents a burden on our economy and our public finances.

In a text published last October, I explained how much Quebec is at a numerical disadvantage compared to Canada’s most populous provinces. I explained that:

• Since 2011, Alberta’s population has grown by 21.9%, British Columbia by 18.5%, and Ontario by 15.4%. Meanwhile, in Quebec, the population increase was only 8.9%;
• And then, since 2011, the number of 25-54-year-olds, the beating heart of workers, has fallen 2.2% in Quebec, while it has grown 4.9% in Ontario and 9.9% in Alberta and the British. Columbia.

To alleviate labor shortages, we must focus on training. Employment Minister Jean Boulet is working to set up various programs to try to help businesses and workers change.

To reduce the effects of population aging, we must focus on improving productivity. And that requires automation, large investments by companies, and… more weapons!

In a study published in November, the Institut du Québec wrote that Quebec needs to make sure it meets the limits set for accepting immigrants. Quebec must also catch up with the reductions of pandemic years.

Chasing these delays in relation to the target, writes the Institut du Québec, is important for Quebec’s economy for two main reasons. On the one hand, this immigration is intended to meet the urgent needs of the labor market and, on the other hand, many people who are currently on the land of Quebec and awaiting the provision of permanent residence risk status are discouraged. by leaving Quebec or losing their jobs if the delays do not. subside.

The Institute called for a reduction in immigrant entry hours and better recognition of foreign skills and experience. Quebec announced an agreement with the federal government on April 1 to expedite the arrival of foreign workers. The Legault government also announced, a few days ago, the holding of 17 missions abroad to try to attract 3,000 workers to Quebec.

We must end partisan debates on immigration and take more interest in the economy, society, demographics, the financing of our public services. Immigration is part of Quebec’s solution to maintaining our standard of living and our model of society.