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How Will Immigration and an Aging Labour Force Affect You - Assignment Example

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When the composition of immigrants lies more to the aging population, then what the increase in population means is that more of them will be dependants than…
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How Will Immigration and an Aging Labour Force Affect You
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Effects of Immigration and an Aging Labor Force al affiliation) Immigrants increase the population of a country and increase the labor force that can be employed at a particular time. When the composition of immigrants lies more to the aging population, then what the increase in population means is that more of them will be dependants than workers (Bös, & Cnossen, 2012). An aging population has significant effects on the performance of the economy that will be discussed below.
Immigrants to Canada are a usual occurrence. More and more immigrants are coming into the country for various reasons. The reasons include; those who come to Canada to further their studies and those who relocate into the country for green pastures and better opportunities. When the majority of the immigrants are of the aging population, they put a strain on the working population and the resources of the government. At best, the aging population will work for a short while after which they will retire and start enjoying their pension. Their contribution to the general economy will immensely reduce. The government will have to tax the working age group to meet the needs of the government and to sustain the dependents, the aging population.
When the aging population is composed of people older than the age of sixty-five, then the situation becomes different. This population does not contribute in any way to the economy but only spend what the economic agents produce. They lower the GDP of the economy and heavily reduce the resources of the government. They are a burden to the government and the continuous increase means the government will spend more on healthcare and pension than on productive engagements and projects.
References
Bös, D., & Cnossen, S. (2012). Fiscal Implications of an Aging Population. Berlin, Heidelberg: Springer Berlin Heidelberg. Read More
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