As Canada faces a housing crunch and a rising cost of living, an increasing number of people are leaving the country, leading to a growing retention problem within its immigration system. According to a study by the Institute for Canadian Citizenship (ICC) and the Conference Board of Canada, the onward migration rate among all immigrant cohorts from 1982 to 2018 rose to 1.15% in 2017, up from 0.8% in 2016. This trend continued in 2019, reaching a high of 1.18%. These rates far exceed the historical average of 0.9% for onward migration among permanent residents granted since 1982
While these departure rates may seem insignificant, the cumulative effect over time can lead to attrition of 20% or more within a particular cohort over 25 years, as highlighted in the report. Canada heavily relies on its immigrant population to address its aging demographic and fill crucial roles in the workforce, making this retention challenge a cause for concern.
The retention challenge faced by Canada’s immigration system involves several factors that contribute to immigrants leaving the country. Here are some factors:
- Affordable Housing Crisis: Canada is experiencing a significant housing affordability issue, particularly in major cities like Vancouver and Toronto. The rising cost of housing, combined with limited availability, has created challenges for immigrants seeking affordable accommodation. This issue often leads to financial burdens and can prompt individuals and families to consider relocating to more affordable areas or countries.
- Underutilization of Skills: Many highly skilled immigrants find themselves working in jobs that do not fully utilize their qualifications and expertise. A report by Royal Bank of Canada economists highlighted that immigrants with university degrees or above are 43% more likely to work in jobs where their educational background is not required, compared to their Canadian-born counterparts. This underutilization can lead to feelings of frustration, job dissatisfaction, and the perception of being underpaid, ultimately contributing to immigrants’ decision to leave Canada.
- Inadequate Infrastructure Investment: Canada’s infrastructure, including healthcare, transit, education, and childcare, requires increased investment to meet the needs of its growing population, including immigrants. The lack of sufficient infrastructure can create challenges in accessing essential services and amenities, impacting the overall quality of life for immigrants and their families. Integrating housing, healthcare, and infrastructure planning is crucial to address these issues and enhance the overall immigration system.
To tackle the retention problem, Canada will need to address these factors by implementing measures such as improving housing affordability, facilitating better recognition of foreign credentials, providing more opportunities for skilled immigrants to utilize their skills, and increasing investment in infrastructure to support the needs of both newcomers and the broader population.
By addressing these challenges and creating a more supportive environment for immigrants, Canada can enhance its retention rates, ensuring that immigrants can fully contribute to the country’s economy, society, and cultural diversity.