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Federal mismanagement to blame for Canada’s immigration backlash

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15 minute read

From the Macdonald Laurier Institute

By Sonia Orlu for Inside Policy

Canada’s welcoming attitude towards newcomers makes it one of the most sought-after places to live in the world. However, this image is being tested by a growing backlash against immigration. Immigrants make up 23 per cent of the population, yet economic, social, and cultural anxieties are increasingly challenging the country’s commitment to diversity. More than four-in-ten Canadians now agree – either strongly (23 per cent) or somewhat (21 per cent) – with the statement, “There is too much immigration to Canada.” It is crucial to understand that this backlash is not rooted in opposition to immigration or immigrants themselves, but rather in frustration over mismanagement and inadequate planning by the federal government. It reflects a growing unease about the country’s economic outlook, raising urgent questions about how Canada can uphold its values while addressing legitimate and pressing concerns.

Public reactions and political responses

Canadian political leaders have generally maintained a measured tone on immigration, focusing on economic pressures and service delivery rather than hostility toward immigrants. However, tensions are rising, and a thoughtful debate is increasingly needed.

Prime Minister Justin Trudeau has accused the Conservative Party of spreading misinformation to stoke fears about immigration. Such remarks risk alienating those with legitimate critiques of his administration’s policies and practices. Conservative Leader Pierre Poilievre has linked immigration to housing shortages, criticizing Trudeau’s policies as disconnected from infrastructure needs. This aligns with public frustrations over housing availability and the need for better coordination between immigration levels and capacity. Quebec Premier François Legault echoed similar sentiments, raising issues of resource management and culture. His critics accuse him of xenophobia, but dismissive responses like Immigration Minister Marc Miller’s remark that people are “always blaming immigrants” overlook genuine challenges and deepen frustration.

These exchanges illustrate the delicate balance required in navigating immigration policy and public sentiment. Canadians’ attitudes toward immigration are more nuanced than a simple pro- or anti-immigration divide. Most Canadians aren’t driven by fear or racism; rather, they are focused on how immigration impacts housing affordability, strains public finances, and increases job competition. While apprehension about immigration levels is growing, attitudes toward immigrants themselves remain largely positive. In fact, more than four-in-ten Canadians (42 per cent) say that immigrants make their community a better place, with fewer than one-in-ten (9 per cent) feeling that they make it worse. Still, public concerns must be addressed to prevent further polarization.

The housing crisis: a catalyst for frustration

A significant driver of the immigration backlash is the housing crisis. The Canada Mortgage and Housing Corporation (CMHC) reported in 2024 that Canada needs an additional 3.5 million housing units by 2030 to restore affordability. Cities like Toronto and Vancouver have seen housing prices soar, partly due to increased demand from population growth.

The “housing theory of everything” highlights how housing affects multiple societal issues – such as economic inequality, social mobility, and political polarization. Immigration is no exception. Housing shortages drive up costs, deepen inequality, and create competition between immigrants and long-term residents, eroding social trust and cohesion.

The rise in temporary residents, including international students and temporary foreign workers, compounds these issues. Immigration, Refugees and Citizenship Canada (IRCC) reports that the number of temporary residents increased by over 50 per cent from 2017 to 2022 and continued to rise sharply  into 2024. This influx contributes to increased demand in the rental housing market, particularly in urban centres with large universities, driving up prices and reducing availability.

The Trudeau government’s ambitious plan to admit nearly 500,000 new permanent residents annually by 2026 marks one of the highest per-capita immigration rates globally. By comparison, Canada admitted around 200,000 landed immigrants per year in the 1990s and 250,000 per year in the early 2010s. Without matching investments in infrastructure and housing, these elevated immigration levels – often referred to as “mass immigration” – could exacerbate housing shortages, strain public services, and heighten public frustration. Internal documents from Immigration, Refugees, and Citizenship Canada revealed that as early as 2022, officials warned that large increases in immigration could worsen housing affordability and strain public services. Yet, no substantive steps were taken by the government to revise its targets.

Given the realistic timelines for development, it is improbable that infrastructure can keep pace with rapid population growth. The construction industry faces labour shortages, regulatory hurdles, and lengthy timelines for project completion – often several years. The CMHC maintains that due to these complexities, expecting cities to rapidly scale up infrastructure to meet immediate demands is unrealistic.

If these housing issues are not resolved, public frustration could escalate, potentially shifting from concerns about immigration policy to resentment toward immigrants themselves.

Cultural integration: balancing diversity and cohesion

Economic challenges, such as housing affordability, often intersect with social and cultural anxieties. As communities experience rapid change and strained resources, questions arise about society’s ability to integrate newcomers without compromising its social fabric. While only about 4 per cent of Canadians express fears that immigration weakens local culture and identity, concerns about the effectiveness of integration are more widespread. In fact, approximately half of Canadians are concerned that some immigrants may not be adopting Canadian values or fully participating in the broader community. When asked which values immigrants should adopt, Canadians often prioritize language proficiency and respect for the country’s history and culture, highlighting the importance placed on cultural integration. Interestingly, both native-born and foreign-born Canadians largely agree on the values newcomers should embrace, indicating a shared vision for integration.

Canada’s sense of nationhood is deeply tied to its history of migration and its commitment to cultural and ethnic diversity. However, diversity is not inherently beneficial in all forms; its value depends on whether it leads to greater tolerance, creativity, or economic growth. When cultural and ethnic diversity is celebrated without deliberate efforts to foster interaction and promote unity, it risks becoming fragile. Poorly managed diversity can lead to social fragmentation, lower trust, and weakened civic engagement.

The challenges of integration are well-documented. Language barriers, different social norms, and unfamiliarity with Canadian institutions can make it difficult for immigrants to fully integrate. This can sometimes lead to the formation of cultural enclaves, where newcomers find comfort in communities with shared backgrounds but have limited interaction with the broader society. While these enclaves provide crucial support, they can inadvertently hinder full participation in Canadian life. Sociologist Robert Putnam found that, in the short term, diversity can reduce social capital and lower community engagement, particularly when institutions fail to promote integration – a concept he refers to as “hunkering down.” In such cases, both newcomers and long-term residents may feel isolated.

Despite these challenges, diversity, when managed effectively, can yield benefits. Exposure to different cultures fosters creativity, innovation, and economic growth, even though research suggests that immigration itself is neither inherently good nor bad for the economy. Cities like Toronto and Vancouver have thrived in part due to their multicultural populations, which have helped them become global hubs for technology and the arts. Additionally, evidence shows that successful integration is common in Canada. Many immigrants actively embrace Canadian valuescontribute to the economy, and participate in civic life. The majority of eligible immigrants become Canadian citizens, demonstrating a strong commitment to their new country. Many immigrants choose Canada precisely because they align with its principles of democracy, equality, and respect for human rights. Cultural integration, in the end, is a dynamic process – one that, when approached thoughtfully, strengthens rather than weakens the social fabric.

Bridging policy failures with sustainable solutions

Addressing public frustrations with immigration requires a serious reassessment of the policies that have exacerbated these concerns.

First and foremost, tackling the housing crisis through integrated planning is essential. Governments should incentivize affordable housing development and reform zoning laws to allow for higher-density projects. Recognizing the realistic timelines for construction and development, planning must begin immediately and be synchronized with immigration targets. Public sentiment strongly supports this approach. A recent Nanos Research survey found that 72 per cent of Canadians want to reduce immigration levels until housing becomes affordable.

Aligning immigration levels with the country’s capacity is crucial. Dynamic targets based on real-time economic data and infrastructure development would ensure that immigration aligns with Canada’s ability to provide services and opportunities. Returning to historical admission levels of 200,000 to 250,000 immigrants per year could help ease pressure on housing and public services. Adjusting the composition of immigration streams is equally important.

Temporary measures – such as pausing or reducing programs for international students and temporary foreign workers – could relieve immediate pressures while infrastructure catches up. For instance, although international students contributed over $30 billion to the economy in 2022, lowering their numbers could help reduce housing demand in university towns. Likewise, managing temporary foreign worker intake would address labour shortages without overwhelming resources.

Effective integration and support services must also be given priority. This should begin with implementing consistent selective immigration measures that evaluate an applicant’s potential to integrate both economically and culturally into Canadian society. Such measures would reduce reliance on extensive post-arrival support and help ease cultural tensions. According to a 2018 Angus Reid survey, two-in-three Canadians believe that greater emphasis should be placed on screening for alignment with Canadian values. However, it’s important to note that defining “Canadian values” can be subjective and risks being perceived as discriminatory.

Improvements to post-arrival services like community centres offering language classes, job search support, and cultural orientation programs are necessary to significantly ease the transition for newcomers. Research shows that when immigrants are effectively integrated, they are more likely to find employment, increasing tax contributions and reducing their reliance on social services. Additionally, well-integrated immigrants are more likely to engage in civic life, fostering social cohesion and strengthening community resilience.

Cultural diversity, while valuable, cannot be assumed to sustain itself without active support. Integration is not just about where people live or demographic representation; it also involves cultivating a shared sense of purpose and belonging. Successful integration depends on a reciprocal relationship: immigrants need the resources and opportunities to succeed, and in turn, they must engage with and contribute to the broader societal and cultural framework. Without deliberate policies that encourage community engagement, cross-cultural dialogue, and mutual respect, there is a risk that cultural diversity will falter.

Finally, responsible political discourse is crucial. Leaders must choose their words carefully, as rhetoric shapes public perceptions. By fostering nuanced and empathetic dialogue, they can bridge the gap between public concerns and policy realities, preserving national unity.

Canada stands at a crossroads. While immigration has long been one of our greatest assets, the current backlash highlights cracks in its management. This is not a rejection of immigrants – it’s a call for better policies and improved management. High immigration levels without careful planning will continue to harm our society. Our leaders now face a choice: fan the flames of division or unite the country around meaningful, evidence-based solutions.


Sonia Orlu is a Ph.D. student in Political Science at Simon Fraser University and a commentator on politics and culture. She is a contributing writer to the Macdonald-Laurier Institute.

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Canadian Energy Centre

Oil and gas companies are once again the top performers on the TSX. Why do people still listen to the divestment movement?

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From the Canadian Energy Centre

By Gina Pappano

The TSX30—the annual ranking of the top-performing stocks on the Toronto Stock Exchange—was recently released and, once again, oil and gas companies made up the lion’s share of the list.

Half of the top companies (11 producers and four energy service companies) are in the oil and gas sector.

Share prices have been driven up due to energy supply and security concerns and ever-increasing demand for oil and gas. The industry and its investors have enjoyed extraordinary three-year returns. The average share price return for the 15 oil and gas companies in the TSX30 was 210 per cent.

But what about the large endowment funds, pension plans, institutional funds and, more recently, banks that have bowed to pressure from divestment-promoting activists to stop investing in the natural resource sector?

In removing oil and gas from their investment pool, they have ignored their responsibility to their beneficiaries, who have missed out on these remarkable returns.

Trustees have a fiduciary duty to act in the best interest of their beneficiaries, which in this case means maximizing the risk-adjusted return for their clients.

But for ideological reasons, oil and gas companies are often being left out of the investment equation.

What’s more, the divestors aren’t even achieving their ideological goal.

Abundant energy is the prerequisite for modern life. Divestment does not stop oil and gas production because it does nothing to reduce demand. After more than a decade of divestment pledges, demand for oil and gas has only continued to go up. This demand is projected to continue to grow for years to come.

If Canada does not supply the oil and gas the world wants and needs, it will be supplied from elsewhere, including by authoritarian regimes in poorly regulated, undemocratic countries that are less responsible and less environmentally friendly.

It would be better if Canadian companies like those on the TSX30 were the ones to step up and meet the world’s ever-growing energy needs.

It would be better for Canadians as well. Canada is blessed with abundant natural resources, and oil and gas is central to our prosperity. All of the companies on the TSX30 list rely on the oil and gas sector to fuel their business, from industrials to mining, to aviation, technology and yes, even to renewable energy.

Investing in the Canadian oil and gas sector means investing in energy companies that can and should be the suppliers of the energy demanded by our power-hungry world.

These companies have high environmental and governance standards, are driven to innovate—an essential process for emissions reduction—and have had some of the strongest returns on the TSX in recent years.

Can our banks and fund managers possibly continue to ignore the significant value in the energy space? Only time will tell.

Gina Pappano is the former head of market intelligence at the Toronto Stock Exchange and TSX Venture Exchange and executive director of InvestNow, a non-profit dedicated to demonstrating that investing in Canada’s resource sectors helps Canada and the world. Join the movement and pass the InvestNow resolution at investnow.org.

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Business

Taxpayers Federation calls on premiers to join carbon tax court fight

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From the Canadian Taxpayers Federation

Author: Franco Terrazzano 

The Canadian Taxpayers Federation is calling on all premiers to join New Brunswick Premier Blaine Higgs and launch a legal challenge against the federal carbon tax.

“Higgs is right that the carbon tax is an unfair punishment on Canadians and all premiers should stick up for their taxpayers by following his lead,” said Franco Terrazzano, CTF Federal Director. “Taxpayers are taking it on the chin every time we pay our heating bills and Prime Minister Justin Trudeau is blowing a hole through constitutional accountability with his unequal application of the carbon tax.”

Higgs announced that if he is re-elected, the New Brunswick government would launch a renewed legal challenge against the federal carbon tax.

The federal carbon tax “carve-outs violate the Supreme Court’s ruling, and the tax makes gas, groceries, and essential services more expensive,” according to the Progressive Conservative Party of New Brunswick.

Last year, the federal government announced it is removing the carbon tax from furnace oil for three years, but did not exempt other forms of home heating energy.

“Across Canada, fuel oil makes up just three per cent of residential heating energy,” according to the government of Nova Scotia. “Natural gas was the most commonly used energy source for residential heating.”

The average home uses 2,385 cubic metres of natural gas per year, according to the Canadian Gas Association. That means removing the current federal carbon tax would save the average home about $360 this year.

“When Trudeau announced his furnace oil carve out, he admitted the carbon tax makes life more expensive, he admitted the carbon tax is all about politics and he left 97 per cent of Canadian families out in the cold,” Terrazzano said. “All premiers should do everything in their power to fight the carbon tax.”

A 2023 Leger poll found 70 per cent of Canadians support removing the carbon tax from all home heating fuels.

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