Canada sees reverse migration as cost of living surges in country, says report

The aspiration to thrive in Canada has transformed into a struggle for survival with an unprecedented surge in the cost of living, fueling reverse migration in the country. Recent data showed that in the first six months of 2023, some 42,000 individuals departed Canada, amid rising cost of living.  

As many as 93,818 people had left in 2022 and 85,927 exited in 2021, Reuters reported citing the official data on Saturday.

Emigration as a percentage of Canada's overall population touched a high of 0.2 per cent in the mid-1990s, and currently stands at about 0.09 per cent, according to official government data.

In 2019, the rate of immigrants leaving Canada reached a two-decade high, as reported by the Institute for Canadian Citizenship (ICC), an immigration advocacy group. Although the numbers decreased during pandemic lockdowns, recent Statistics Canada data indicates a resurgence in this trend.

Know the cost of living in Canada?

In an interview with Reuters, individuals who have either departed or are planning to leave Canada cite the high cost of living as their primary reason. Many immigrants specifically point to the soaring housing costs as the major factor influencing their decision to explore opportunities in other countries.

On average in Canada, approximately 60 per cent of household income is required to cover home ownership costs, a figure that surges to about 98 per cent in Vancouver and 80 per cent in Toronto, according to data from the Royal Bank of Canada's (RBC) September report, as cited by Reuters.

Cara, a 25-year-old refugee from Hong Kong who arrived in Canada in 2022, currently pays C$650 ($474) monthly for a single-room basement apartment in Scarborough, north of Toronto, which accounts for about 30 per cent of her monthly take-home salary. 

Working three part-time jobs at Ontario's minimum wage of C$16.55 per hour and attending an adult learning school to earn university credits, Cara stated, "I almost use every single penny." In Hong Kong, she saved about a third of her monthly salary.

Canada govt to give financial jolt to international students

Canada will more than double the cost-of-living financial requirement for incoming international students beginning January 1, Immigration Minister Marc Miller announced recently. The move will impact the arrival of foreign students in the country, including from India.

In 2022, India ranked first among the top 10 origin countries for study permit holders in Canada, with 319,000 students. Additionally, Canada stands out as a preferred destination for individuals from Punjab, both for studying and settling down.

Several aspirants' parents in Punjab were quoted by PTI as saying that Canada's move to more than double the cost-of-living requirement for incoming international students will put an additional financial burden on people sending their children to study in that country.