Policymakers should be prepared for a 'new reality' after immigration cuts, think tank warns

OTTAWA — Upcoming economic data is at risk of being misread by Canadian policy makers if they don’t fully appreciate the effects of recent cuts to immigration and the number of temporary foreign workers, a new report warns.

The report, to be published Wednesday by the C.D. Howe Institute, says the reductions will mean short-term dips in Canada’s population, which will make key data such as total employment and economic growth look more sluggish than the reality.

The think tank’s...