Canada struggles to retain immigrants as the onward migration rate increases

A NEW report from the Institute for Canadian Citizenship (ICC), The Leaky Bucket, finds that growing numbers of immigrants to Canada are deciding to leave rather than stay.

One of the key findings of the report is on Onward migration — immigrants leaving Canada — that shows an increasing trend among more recent cohorts of immigrants, which suggests immigrants may not be seeing the benefits of moving to Canada.

According to a report prepared for the International Criminal Court by the Conference Board of Canada, immigration out of Canada has been gradually rising for several decades, but in 2017 and 2019, it unexpectedly increased. The report also finds that most onward migration occurs in the first 10 years after arrival, with the greatest risk of departure occurring between years four and seven

“While the fairy tale of Canada as a land of opportunity still holds for many newcomers, this study points to burgeoning disillusionment. After giving Canada a try, growing numbers of immigrants are saying “no thanks,” and moving on,” says Daniel Bernhard, CEO, of the Institute for Canadian Citizenship.

A 2022 survey shows that younger immigrants’ experience of life in Canada is mixed, with 30 per cent of 18-to 34-year-olds saying that they are likely to move to another country in the next two years.

There are innumerable stories of immigrants who are reconsidering their decision to move to Canada. And a recent study released by the Institute for Canadian Citizenship found that the proportion of permanent residents who take up Canadian citizenship within 10 years of arrival dropped by a staggering 40 per cent between 2001 and 2021.

Life in Canada seems to be changing fast with a higher focus on immigration. Liberal Immigration Minister Marc Miller recently said, “Demand for international students is coming from industries in ‘low skilled labour’ like big box stores looking for ‘cheap labour’ who also want students to continue to be allowed to work 40 hours a week.” The next thing they look for is to get permanent residency in Canada.

Retention should be a key performance indicator for Canada’s immigration strategy, given the central role that immigration is meant to play in supporting population and economic growth. Yet Canada has remarkably little data on immigrant retention.

Without this data, policymakers are ill-prepared to chart the best course forward. According to OECD report, Canada contributed a record 375000 new Canadian citizens in 2022 (+174% compared to 2021 and +50% compared to 2019). The government has to devise plans to retain the immigrants and lower the onward migration rate.