Canada Counts on Newcomers: 2025 Economic Outlook Fully Unveiled

Is immigration helping or hurting Canada’s economy? At the 2025 Economic Outlook event hosted by Wilfrid Laurier University, experts offered clear answers, and data.

They tackled labour shortages, wages, housing prices, and international students, showing how newcomers are essential to Canada’s future. Here's what it means for you.

Key Takeaways

• Labour gaps: Immigration is vital to fill over 1M job vacancies.
• Housing myth: Rising prices tied to capital inflow, not newcomers.
• Student impact: International students boost the economy with low job market impact.

Canada’s Labour Shortage Demands Immigration

Insights from the 2025 Economic Outlook hosted by Wilfrid Laurier University’s Lazaridis School underscore the scale of the challenge. Canada faces major demographic shifts, with retiring baby boomers leaving behind over 1 million job vacancies. Immigration isn’t just helpful—it’s necessary to maintain economic stability and growth.

In fact, Canada led G7 countries in job growth in 2023 (+2.4%) and anticipates 1.4% job growth in 2025. Yet the unemployment rate still hovered at 6.7% in early 2025, with certain regions like Ontario reporting higher-than-average levels. Immigrants, particularly skilled workers and students, are helping address gaps in healthcare, construction, and tech.

The federal government plans to welcome 395,000 permanent residents in 2025, gradually reducing to 365,000 by 2027. Without this steady inflow, labour shortages could worsen across provinces.

Rethinking the Link Between Immigration and Housing Costs

Contrary to popular belief, immigration isn’t the main reason housing prices have surged. Experts from the Lazaridis School cited pandemic-era investment inflows and supply issues as more influential than population growth from newcomers.

This matters for public perception, blaming immigrants diverts attention from the real causes and delays real housing solutions. Even with planned immigration reductions, Canada is projected to face a housing shortfall of 658,000 units by 2030. While rental construction remains strong, the Canada Mortgage and Housing Corporation notes a slowdown in condo development.

Economic Contribution of International Students

International students are often misunderstood. The data shows they contribute significantly to tuition revenue and local economies, without competing heavily in the job market.

Panelists emphasized that they’re a key asset, especially when they stay and transition to permanent residency, bringing education, youth, and adaptability. Moreover, most international students are not taking jobs that compete directly with domestic workers. Their impact is economic, not disruptive.

What This Means for Immigrants Today

For immigrants in or coming to Canada, this analysis offers clarity. The labour market is still in your favor, especially if you bring in-demand skills or are already working or studying here.

However, challenges remain. Recent immigrants face unemployment rates nearly double that of Canadian-born individuals, particularly in major cities like Toronto. And only a quarter of them work in trades or construction, despite national shortages in those fields.

Don’t be discouraged by political debates. Canada’s economic outlook confirms the country needs  and values your contributions.

Not sure how these trends affect your immigration goals? Take a free assessment with AskAïa to explore your best options based on your profile.