--- canonical_url: "https://csls.ca/research/how-has-the-recent-surge-in-population-growth-in-canada-affected-productivity/" title: "How Has the Recent Surge in Population Growth in Canada Affected Productivity" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-01T11:29:18+00:00" date_modified: "2026-07-01T11:29:18+00:00" post_type: "research" summary: "" post_tag: - "Canada" - "capital stock" - "immigration" - "labour productivity" - "non-permanent residents" - "population growth" - "productivity" country_focus: - "Canada" province_region: - "National" research_theme: - "Labour Markets" - "Productivity and Economic Measurement" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # How Has the Recent Surge in Population Growth in Canada Affected Productivity Canonical URL: https://csls.ca/research/how-has-the-recent-surge-in-population-growth-in-canada-affected-productivity/ # How Has the Recent Surge in Population Growth in Canada Affected Productivity [Download full PDF report](https://csls.ca/pdf/csls2024-07-1.pdf) Cite this report × Cite this report as: Sargent, Tim. 2024. “How Has the Recent Surge in Population Growth in Canada Affected Productivity.” CSLS Research Report 2024-07. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/how-has-the-recent-surge-in-population-growth-in-canada-affected-productivity/ ## Author: - Tim Sargent Centre for the Study of Living Standards (CSLS); Macdonald-Laurier Institute ## Report 2024-07 September 2024 14 pages ## Related research [Measuring the Appropriate Outcomes for Better Decision-Making: A Framework to Guide the Analysis of Health Policy Matthew Calver March 2016 | Report 2016-03 | 132 pages](https://csls.ca/research/measuring-the-appropriate-outcomes-for-better-decision-making-a-framework-to-guide-the-analysis-of-health-policy-2016-03/) [Living Standards Domain of the Canadian Index of Wellbeing Andrew Sharpe, Christopher Ross November 2011 | Report 2011-17 | 124 pages](https://csls.ca/research/living-standards-domain-of-the-canadian-index-of-wellbeing-2011-17/) [Productivity: Key to Economic Success Centre for the Study of Living Standards (CSLS) March 1998 | Report 1998-01 | 99 pages](https://csls.ca/research/productivity-key-to-economic-success/) [Productivity Trends: A Canada-U.S. Comparison Centre for the Study of Living Standards (CSLS) January 1999 | Report 1999-01 | 6 pages](https://csls.ca/research/productivity-trends-a-canada-u-s-comparison/) [New Estimates of Manufacturing Productivity Growth for Canada and the United States Andrew Sharpe March 1999 | Report 1999-02 | 21 pages](https://csls.ca/research/new-estimates-of-manufacturing-productivity-growth-for-canada-and-the-united-states/) [Apprenticeship in Canada: A Training System Under Siege? 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Because the capital stock moves slowly, faster population growth reduces the available stock of machinery, buildings, and natural resources per worker, making them less productive. And because new immigrants and NPRs are less productive than immigrants who have been in the country for a long period of time, a surge in immigration lowers the average quality of the workforce. None of this means that no one in the economy benefits from immigration. Owners of capital certainly benefit when labour is cheaper and more abundant. However, the principal beneficiaries of immigration are immigrants themselves. Given the huge wage disparities between Canada and the developing countries from which the vast majority of immigrants come from, the potential economic gain to immigrants is very large. Governments can improve the economy’s adjustment to the higher immigration through policies to improve the investment climate would help increase the capital stock, and better credential recognition to reduce the wage gap for new immigrants. However, policy action on these fronts can only go so far. Ultimately, it is always going to take some time for the capital stock to catch up with a bigger workforce, and new immigrants are likely to be less productive for a significant period This means that if immigration remains at its current level, it is likely to remain a drag on productivity for some time to come. Ce rapport soutient que la forte hausse de l’immigration au cours des dernières années, en particulier chez les résidents non permanents (RNP), a contribué au récent déclin de la productivité du Canada. Comme le stock de capital évolue lentement, une croissance démographique plus rapide réduit le stock disponible de machines, de bâtiments et de ressources naturelles par travailleur, ce qui les rend moins productifs. Et comme les nouveaux immigrants et les RNP sont moins productifs que les immigrants établis depuis longtemps dans le pays, une hausse de l’immigration abaisse la qualité moyenne de la main-d’œuvre. Cela ne signifie pas que personne dans l’économie ne profite de l’immigration. Les propriétaires de capital en bénéficient certainement lorsque la main-d’œuvre est moins chère et plus abondante. Cependant, les principaux bénéficiaires de l’immigration sont les immigrants eux-mêmes. Étant donné les énormes écarts salariaux entre le Canada et les pays en développement d’où proviennent la grande majorité des immigrants, le gain économique potentiel pour les immigrants est très important. Les gouvernements peuvent améliorer l’ajustement de l’économie à une immigration accrue grâce à des politiques visant à améliorer le climat d’investissement, ce qui contribuerait à accroître le stock de capital, ainsi qu’à une meilleure reconnaissance des diplômes pour réduire l’écart salarial des nouveaux immigrants. Cependant, l’action politique sur ces fronts a ses limites. En fin de compte, il faudra toujours un certain temps pour que le stock de capital rattrape une main-d’œuvre plus nombreuse, et les nouveaux immigrants seront probablement moins productifs pendant une période importante. Cela signifie que si l’immigration se maintient à son niveau actuel, elle continuera probablement de freiner la productivité pendant encore quelque temps. [Download full PDF report](https://csls.ca/pdf/csls2024-07-1.pdf)