Can we attract more people to Canada without blowing everything up?
Canada has lost its competitive edge in attracting skilled talent, and the entire immigration system is overdue for a reset, according to Jackie Pichette, skills and policy lead at RBC Thought Leadership.
Pichette recommends setting a population growth target of about 1%, with a modest range for annual adjustments based on economic and labour-market conditions. A more predictable approach would give governments, businesses and communities greater ability to plan for housing, transportation, health care and education.
“The growth rate should be matched with policies and investments to meet the expected needs of the corresponding population size. Higher growth requires larger investments in public infrastructure like housing and transportation, services like health care and education, and more private capital to ensure a productive workforce,” Pichette writes. “If Canada opts for a lower growth rate, policies need to account for funding and labour shortfalls associated with an aging population, smaller workforce and tax base, alongside growing care needs.”
Pichette also calls for an overhaul of the Express Entry system that allows applicants with the potential to earn high incomes to be approved quickly. The system has been weakened by occupation-based sub-categories, she writes, recommending a return to the points system. The report also recommends shifting most category-based immigration decisions toward provinces and territories, where governments are closer to regional labour-market needs.
Select candidates with the highest projected earnings
“Concentrating most categories at the provincial and territorial level to address regional skills shortages” would allow the federal government to focus on selecting candidates with the highest projected earnings, Pichette writes.
Category-based immigration in industries that have shortages should still remain a priority, however, the system has become overly complicated with about 80 provincial pathways alongside federal categories that can overlap, she says.
She recommends that provinces coordinate to create “fewer, more stable categories” and use labour-market information to target proven opportunities. It also suggests stronger measures to improve retention, including credential-recognition initiatives and better evaluation of which newcomers remain in their province.
Positive attitudes on immigration have decreased in recent years. An Environics survey earlier this year found that 71% of Canadians believe there's too much immigration. In 2025, the country experienced the first ever annual decrease in population.
In an op-ed for the Globe and Mail, Doug Saunders said it's time to increase the immigration rate. “The challenge is to do it without blowing everything up again. The return to economic growth and higher employment we’ve been experiencing this year, along with Canada’s mood of defiant nation-building, have made Ottawa’s immigration slowdown a hindrance to our ambitions,” he says.
Pichette recommends rebuilding a two-step immigration model, in which highly skilled workers and students first gain Canadian work or study experience before applying for permanent residence.
She also calls for major improvements to immigration data and transparency. Canada should move toward “near real time and more complete information about outcomes, including exits and earnings.”
Canada’s immigration system remains heavily reliant on temporary workers, a model that has contributed to past population pressures and continues to create structural problems. The Express Entry system favours highly educated applicants, excluding many skilled tradespeople, while lengthy permanent-residency processing times can leave newcomers in temporary status for years, says Saunders.
“Permanent immigration of intact families, with a quick pathway to citizenship, should constitute the majority of immigration. It provides the most successful integration, the highest economic return, and a newcomer population that invests in housing rather than just consuming it,” he says.
