Extract C
Immigration is a key driver of Canada's macroeconomic development, particularly given its rapidly aging domestic workforce. It is estimated that foreign-born individuals now comprise around 26% of the Canadian labour force. This sustained influx helps address critical skills shortages in high-growth industries like software development, healthcare, and engineering. However, some economists and commentators argue that rapid population growth through high immigration levels can exacerbate pressures on local housing markets, public transit, and municipal infrastructure, potentially dampening per-capita productivity growth.
Using the data in Extract C and your economic knowledge, discuss the ways in which immigration affects the performance of the Canadian economy.
327 exam-style questions on AQA A Level Economics 2.3 Economic performance, covering 2.3.1 Economic growth and the economic cycle, 2.3.2 Employment and unemployment, 2.3.3 Inflation and deflation, and 2.3.4 Possible conflicts between macroeconomic policy objectives. Each one has a worked solution and a mark scheme showing where the marks go.