Canada shows higher population growth even with borders still closed

It looks like Canada’s population growth is getting back to its pre-pandemic pace following almost a full stop in 2020.

The recent report by Statistics Canada says Canada’s population was up by 0.2%, or 82,366 people, during the first quarter of 2021, reaching 38.1 million. It’s the fastest quarterly increase since the beginning of pandemic. It points to an international migration recovery. Meanwhile, an average 10-years quarterly growth was less than 0.3% before the pandemic started.

Such results show that the nation is finding ways to let workers and students enter Canada even in spite of all the travel restrictions. Immigration into Canada has been the main driver of economic growth, affecting all sectors: from real estate market to banking services.

Prime Minister Justin Trudeau has prioritized immigration despite the economic slowdown, considering it vital for fighting the influence of aging demographics on the labor force. In 2021, the government aims at 401,000 permanent residents in attempt to offset the missing goal of the previous year.

Net international migration, including students, was the strongest driver of population growth in Q1, with 75,987 new residents. It’s close to the recent average for the first three months of a year.

“We can see a strong recovery in study permit visas,” – noted Andrew Agopsowicz, an economist at RBC.

This pace has remained at the beginning of the second quarter as well, with Immigration Canada saying the country accepted 91,580 permanent residents in the first four months of this year.

In 2020, population growth went down to its slowest pace since World War I as the country stopped almost all travel to restrain the spread of COVID-19. However, the government has changed its immigration and travel rules in order to allow newcomers including students and close relatives enter the country. As you know, Canada’s borders have been closed for non-essential travel for almost 15 months.

Compared to a year ago, Canada’s population rose by only 0.4%, remaining unchanged from the end of last year which was the weakest since the 1940s.

At the same time, the country’s natural increase (births minus deaths) was still historically low during the first three months of 2021, gaining only 6,379. It’s the smallest number since 1946, reflecting the issue of aging demographics and low fertility rates – a problem many other developed countries are facing.