Challenging the Narrative: The Economic Case for Immigration in Canada

In a time of economic uncertainty, demographic shifts, a housing crisis and increasing backlash against equity, diversity and inclusion (EDI), the case for immigration in Canada is being challenged. While immigration has long been a cornerstone of Canada’s nation-building and economic growth, rising fear-mongering and misinformation are fueling narratives that scapegoat immigrants for the country’s systemic challenges. Canada faces labour shortages, an aging population (external link) —with nearly one in five Canadians over the age of 65—and growing pressures on small- and medium-sized enterprises (SMEs), which make up 99% of Canadian businesses. In this climate, reaffirming the value of immigration is not just timely—it’s essential to Canada’s future.

At the 27th National Metropolis Conference, held at the Westin Harbour Castle in Toronto and in partnership with the Diversity Institute (DI) and the Future Skills Centre, over 1,100 registrants gathered to discuss these realities. Dr. Wendy Cukier, founder and academic director of DI, delivered remarks at a plenary session titled, Re-establishing the Case for Immigration. Dr. Cukier’s presentation offered a timely and data-driven analysis of how immigration intersects with economic resilience, innovation and inclusive growth. Against the backdrop of shifting attitudes towards immigration, rising costs and cuts to government and equity, diversity and inclusion (EDI) funding, Cukier invited policymakers, business leaders and researchers to revisit the foundational rationale for immigration—not just as a moral imperative, but as an economic necessity. 

Cukier began her discussion by highlighting that SMEs are the backbone of Canada’s economy (external link) , accounting for 99% of Canadian businesses. “Small medium enterprises are a completely different animal,” said Wendy Cukier, emphasizing their unique needs relative to larger organizations and their critical role in Canada’s economy. Composing a significant proportion of employment and innovation, SMEs are particularly vulnerable to shifting trade dynamics. With growing protectionism and tariff threats from the US, many are already experiencing supply chain disruptions, rising costs and reduced demand—pressures that can erode margins and depress company valuations, making it harder to secure venture capital.

Still, these disruptions present strategic opportunities. “Immigrants are part of the solution to the problem we face with the trade barriers,” Cukier said, highlighting the importance of developing local supply chains, exploring emerging markets and leveraging trade agreements beyond North America. “We have to enter new markets. We have to build partnerships,” she said. “There are massive opportunities to harness and leverage the immigrant diaspora to do that.”

Cukier underscored the urgency of addressing the disconnect between Canada’s global leadership in artificial intelligence (AI) research and its lagging adoption across sectors. While Canadian researchers helped pioneer the foundational technologies behind modern AI, businesses have been slow to integrate and adopt these tools into their operations. This, she argued, is a missed opportunity not only for economic productivity but also for newcomer integration. “There are huge opportunities, not just for transformation, but also in terms of how we equip newcomers for the world of work,” she said, pointing to efforts, for example, by the Future Skills Centre (external link)  to use research to align skills development with emerging technologies. Research on AI, shows that immigrants are more familiar with AI tools in the workplace and more likely to have some training with these tools than white and Canadian-born respondents.

She highlighted how this lesson with AI is part of a broader warning about systemic fragmentation in Canada’s economic and social ecosystems—from immigration to credential recognition to skills training. Cukier highlighted the persistence of interprovincial barriers that make it harder for immigrants to fully contribute, despite the country’s need for skilled workers. “Immigrants create jobs. They drive innovation. They build our infrastructure and our homes,” she emphasized. “There’s a labour shortage, and we need immigrants.” But in today’s political climate, she noted, this message is too often drowned out by misinformation and fear mongering.

Drawing on examples ranging from social media manipulation to skewed interpretations of immigration data, Cukier warned of a coordinated backlash against equity, diversity and inclusion (EDI)—a backlash not rooted in facts, but in fear. “This is not a coincidence. It is not just public opinion shifting organically. It is being driven by deliberate efforts to sow division,” she said. In response, she urged the sector to shift its strategy (external link) , not its values. “We can’t just be talking to ourselves. We need to speak the language of business. EDI is not political correctness—it’s Marketing 101.”

Ultimately, Cukier’s call to action was clear: in a moment of global and domestic uncertainty, Canada must double down on immigration, inclusion and innovation—not retreat. “This is not about defending the immigrant and settlement sector,” she said. “It’s about defending EDI as key to Canada’s survival.” Recalling Canada’s once-iconic global image, she reminded the audience that people around the world still love Canada, adding that we have an opportunity—if we pull together—to restore the notion of brand Canada and build a stronger, more inclusive future.