Trudeau plans to continue immigration policies despite admitting they have caused decline in wages, housing crisis in Canada

04/15/2024 / By Laura Harris

Prime Minister Justin Trudeau has announced that his government will continue bringing in up to 500,000 permanent immigrants to Canada annually, despite openly admitting that his immigration policies have contributed to declining wages and housing crisis.

In a media conference at Dartmouth, Nova Scotia, on April 2, a journalist asked Trudeau how his policies have contributed to record-high unaffordability in the nation. Trudeau acknowledged the adverse effects of his policies, citing a drastic population increase from two percent in 2017 to 7.5 percent to date.

“Over the past few years, we’ve seen a massive spike in temporary immigration, whether it’s temporary foreign workers or whether it’s international students in particular, that have grown at a rate far beyond what Canada has been able to absorb,” he said. “To give an example, in 2017, two percent of Canada’s population was made up of temporary immigrants. Now we’re at 7.5 percent of our population comprised of temporary immigrants. That’s something we need to get back under control.” (Related: Florida about to be invaded by 300,000 Haitian migrants, warn observers.)

Trudeau blames the spike in “temporary” immigrants for all the negative impacts of his immigration policies, therefore, he stood firm on his decision to continue welcoming hundreds of thousands of permanent immigrants annually.

“Every year, we bring in about 450,000, now close to 500,000 permanent residents a year and that is part of the necessary growth of Canada,” he said. “It benefits our citizens, our communities, it benefits our economy.”

Previous statements from Trudeau and the Canadian government have confirmed that the country’s “Immigration Level Plan” will allow up to 500,000 immigrants to make Canada their new home beginning in 2025 and continuing up to 2026. In 2024, the admission cap is at 485,000.

Mass immigration not helping Canada’s economy

But contrary to Trudeau’s claims, recent data reveals that Canada’s GDP per capita growth rate is significantly lower compared to the United States, which has a lower migration level.

The comparison, spanning from 1981 to 2022, reveals a persistent gap in real per capita GDP between the two countries, with Canada consistently lagging behind the United States. While both nations experienced growth in real per capita GDP over the years, the 59 percent increase of Canada pales compared to the 98 percent growth of the U.S. during the same period.

According to the report, the decline has occurred in three phases: a fall from 1981 to the mid-1990s, a leveling off until about 2014 and another decline to the present. This downward trajectory marks a reversal of historical growth relative to the U.S., erasing its gains from the 1870s to the early 1980s.

Several factors, including population growth differentials, capital investment, research and development spending, structural economic issues and the policy environment, contribute to the productivity lag.

The influx of immigrants, including international students and temporary workers, has reached 40.528 million in population growth in the third quarter of 2023. This surge, reminiscent of levels not seen since the 1950s, has contributed not only to the extensive economic growth of Canada but also to declining productivity and economic stagnation.

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