In 2023, the Canadian Prime Minister said that his country's aim was to increase immigration to half a million a year. This was because the country was experiencing labour shortages and an increase in life expectancy. More workers in Canada would increase the tax revenue available to spend on pensions, and more workers would also increase consumer spending. An increase in the immigration of both skilled and unskilled workers might affect the country's car industry.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2025). The mark or mark type is shown in brackets.

1. [1] falling death rate / more / better healthcare / healthier lifestyles
2. [1] better education
3. [1] higher (disposable) income
4. [1] improvement in nutrition
5. [1] more / better housing / living standards
6. [1] better environment / less pollution
7. [1] better working conditions
8. [1] less child poverty
9. [1] ending of a war / famine / natural disaster.
10. [1] offer higher wages / prospects of promotion (1) enabling the workers to enjoy high living standards (1)
11. [1] offer better working conditions (1) e.g. regular breaks (1)
12. [1] offer fringe benefits (1) e.g. good pension scheme (1)
13. [1] offer training (1) increase chance of a good job in home country later (1)
14. [1] strong / targeted marketing overseas (1) highlighting benefits of job (1)
15. [1] meet relocation costs (1) removes geographical barrier (1)
16. [1] reputation (1) e.g. good employer / outstanding product/service (1).
17. [1] increase total demand (1) this may increase confidence (1) may encourage firms to increase their output (1) firms' revenue / profits increase (1) leads to more investment / innovation (1) new firms may start up (1) raise GDP (1)
18. [1] increase output, firms may buy capital goods / invest (1) this will increase productive capacity (1)
19. [1] increase output, more workers may be employed (1) this will reduce unemployment (1) increase incomes (1) increase consumer spending further (1)
20. [1] increase (indirect) tax revenue (1) which can be spent on e.g. infrastructure / education / healthcare (1) leading to further increase in productive capacity / GDP (1).
21. [1] demand for cars might rise
22. [1] revenue / profit may increase, enabling firms to pay more
23. [1] car workers may become more skilled / more productive
24. [1] bargaining strength to car workers may increase / their trade unions may become more powerful / inflation rate may increase causing higher wage demands
25. [1] governments may subsidise car production.
26. [1] advances in technology may reduce the need for car workers
27. [1] rise in unemployment will increase competition among workers for jobs
28. [1] increased immigration may increase the supply of car workers
29. [1] demand for cars may fall if public (mass) transport improves
30. [1] inflation may reduce real wages.