P.E.I.'s aging population puts an economic burden on younger Islanders, advocates say

Statistics Canada projects the share of Charlottetown's population under the age of 40 will drop by about 10 per cent by 2049 — a figure that has some advocates raising concerns. 

Immigration policy changes at the federal and provincial levels aimed at slowing population growth are one part of the equation. P.E.I.'s "volatile market for interprovincial migration" is another, said Matt Pelletier, the incoming president of Fusion Charlottetown, an advocacy group for young people.

"What this essentially does is it creates the conditions for provinces and for smaller communities to end up aging faster than anticipated — largely because you no longer have that source of newer residents, younger residents who tend to come from abroad," he said.

"Ultimately, we are seeing the inevitable outcome of that right now with … the share of the population that's under 40 — it's going to be on the decline towards the middle of the century." 

That change in demographics is not surprising, Pelletier said, but there are two big risks that come with an aging population. 

"One is that the capital region of Prince Edward Island no longer acts as that employment and economic engine for the rest of the province," he told Mainstreet P.E.I. host Steve Bruce. 

"The other element that happens here is when you have an older population, you've got a higher share of the population that's going to be more dependent on health and social services, and then you have a smaller share of the population that's actually paying into that through income taxes and sales taxes and by contributing to the economy writ large." 

That could mean higher taxes for young Islanders, he said. 

"They're going to face the ever-growing share of that tax burden," he said.

"That creates a real cost-of-living challenge in the long run to sustain the broader social welfare state that Prince Edward Island can offer." 

P.E.I. has been anticipating population changes as a result of the immigration policy shifts, said Kal Whitnell, the government's director of economic and population growth.

The province is working closely with the federal government and post-secondary institutions, and has international and domestic recruitment strategies in place, he told CBC News: Compass host Louise Martin in a Jan. 13 interview. 

"Population is heavily correlated or aligned with a number of different departments and the work that they're doing across government," he said, adding that a steering committee is in place to direct discussions around planning, population and infrastructure decisions. 

He said the government will continue monitoring changes in population, and is working on mid- and long-term planning.