Canada’s Future Depends on Where Immigrants Settle, Not Just How Many Are Welcomed

June 3, 2024 – Immigration alone cannot solve Canada’s regional and demographic challenges, according to a new report from the C.D. Howe Institute. Immigration must be paired with regional development; otherwise, Canada risks exacerbating the divide between fast- and slow-growth regions while placing even greater strain on already pressured large urban centres.

In “Fast vs. Slow: How Different Immigration Rates Can Impact Canada’s Economic Challenges and Regional Disparities,” Daniel Hiebert finds that regardless of the number of immigrants Canada welcomes, settlement patterns result in only modest population growth in slower-growth regions.

“Regionalization policies like Provincial Nominee Programs have helped newcomers to settle beyond the big three cities,” said Hiebert. “But the real test is whether they stay – secondary migration is pulling people right back into fast-growing areas.”

Hiebert argues that a multi-stage immigration process – such as beginning with temporary status – can help slower-growth regions retain newcomers by giving them time to build social and economic ties before settling permanently.

“If we’re judging the system by how well it supports all parts of the country, it’s coming up short,” Hiebert added. “Immigration can certainly help address Canada’s demographic challenges, but it’s not the only tool – we need broader regional development to make it work.”

The report emphasizes the need for Canada to pair immigration initiatives with broader efforts to strengthen local economic opportunities, access to services, and overall community attractiveness. It also outlines several policy recommendations to help slow-growth regions thrive, including investing in infrastructure, fast-tracking credentials, and supporting the growth of promising mid-sized cities that can absorb growth and ease pressure on major urban centres.

“With housing costs, productivity issues, and an ageing population dominating the national conversation, building growth and resilience across all regions has to be a top priority,” said Hiebert. “It’s not just about the number of newcomers we bring in – it’s about making sure they have the support and opportunities to thrive wherever they settle.”

Read the Full Report

For more information, contact: Daniel Hiebert, Emeritus Professor of Geography, University of British Columbia; Percy Sherwood, Associate Editor and Communications Officer, C.D. Howe Institute, 416-407-4798, psherwood@cdhowe.org.

The C.D. Howe Institute is an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. Widely considered to be Canada’s most influential think tank, the Institute is a trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review.

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