Canadian dream crumbles for many new immigrants
A survey by the Angus Reid Institute shows that 39% of immigrants who have lived in Canada for less than a decade are seriously considering leaving their province due to housing affordability issues, compared to 28% of Canadians overall.
5 Key Takeaways
- High Dissatisfaction Among New Immigrants: A recent survey by the Angus Reid Institute shows that 39% of immigrants who have lived in Canada for less than a decade are contemplating leaving their province due to housing affordability issues, compared to 28% of the general Canadian population.
- The Housing Crisis: It is reaching a critical point in major urban areas like Downtown Toronto and Metro Vancouver. With 44% of Toronto residents and 33% of Vancouver residents considering relocation, the urgency of this issue cannot be overstated.
- Employment Challenges for Newcomers: Recent immigrants, especially those who have arrived within the past five years, face high unemployment rates. In June, the unemployment rate for new immigrants reached 12.6%, significantly higher than the national average of 6.2%.
- Potential Workforce Exodus: Immigrant dissatisfaction and relocation pose a significant risk to Canada’s economic hubs, potentially leading to a workforce exodus from vital urban centers. This could have a profound impact on local economies and services.
- Long-Term Integration Issues: Despite initial struggles, data shows newcomers typically take years to assimilate into Canada’s job market. After a decade, immigrants tend to find employment nearly the same rate as Canadian-born workers. This highlights the enduring benefits of successful integration policies.
Housing Costs in Major Cities
Canada’s record-high immigration levels face a stark reality check as new data reveals growing dissatisfaction among recent arrivals.
The housing crisis is particularly acute in major urban centers, where many newcomers tend to settle.
In Downtown Toronto, 44% of residents are considering relocating, with 22% strongly considering it.
Metro Vancouver shows similar trends, with one-third of residents still determining their long-term future in the region.
This trend poses a significant risk to Canada’s economic hubs, potentially leading to a workforce exodus from city cores.
The situation is exacerbated by rapidly rising housing costs across the country, with some provinces experiencing year-over-year average rent increases exceeding 17%.
The impact extends beyond housing, affecting newcomers’ overall quality of life.
Economic Consequences
Recent immigrants report feeling misled about life in Canada, with many struggling to find suitable employment despite their qualifications.
Some even contemplate leaving the country altogether, with 42% of those considering relocation looking at destinations outside Canada.
This growing dissatisfaction could have far-reaching implications for Canada’s immigration policy and reputation as a welcoming destination for newcomers.
As the government aims to attract 500,000 immigrants annually by 2026, addressing these challenges will ensure the successful integration and retention of new Canadians.
Angus Reid said another province in Canada is the most common destination for those considering relocating.
Nearly half say this (45%), with Alberta being the top choice (18%). That said, one-quarter say they would leave for another country beyond the U.S. (27%), and 15 percent would head south to that latter nation.
Alberta is the primary potential beneficiary of emigrants from B.C., with 35 percent saying they would travel one province east if they were to leave.
In Ontario, the largest group say they would move abroad beyond the U.S. (26%), while Alberta ties for second (17%) with Canada’s southern neighbor (17%).
High Unemployment Rates
Meanwhile, a Bloomberg analysis said Canada’s jobless rate is experiencing an uptick due to the influx of short-term residents and newly arrived immigrants.
Despite being welcomed to address workforce gaps, these newcomers need help securing employment.
According to Bloomberg’s analysis, the unemployment rate for transient inhabitants—encompassing overseas workers, international students, and refuge seekers—stood at 11% in June.
In contrast, the overall workforce unemployment rate was a mere 6.2% during the same period.
Recent immigrants who have arrived within the past five years also encounter difficulties finding work, with their unemployment rate climbing to 12.6% in June.
Sunil Sharma, an immigration expert at Allway Immigration Service, stated that the temporary resident category is the primary factor driving the increase in unemployment figures.
Tiff Macklem, the Bank of Canada’s Governor, recently highlighted that the softening job market has disproportionately affected young workers and newcomers.
He noted that these groups are likelier to be tenants, a demographic facing increased financial pressure.
Macklem suggested that Prime Minister Justin Trudeau’s administration can decelerate non-permanent residents’ growth without causing labor shortages or market constriction.
The government intends to reduce this group by 20% over three years.
Bloomberg’s calculations indicate that the impact of temporary residents and recent immigrants on the overall unemployment rate has more than doubled in less than 24 months.
These two groups represent nearly 20% of all jobless individuals despite comprising only 10% of the workforce.
Bloomberg’s analysis shows that the unemployment rate for temporary residents reached its lowest point of 5.7% in November 2021.
This suggests that the Trudeau government’s decision to ease restrictions for international students and workers during the pandemic may have had unintended consequences.
While the additional workforce was initially necessary to fill job vacancies in 2022, newcomers increasingly find themselves unemployed as open positions become scarce.
Vinay Chaudhary from Dev Immigration Sevices anticipates that reducing temporary residents will lead to a corresponding drop in unemployment. He remarked, “By decreasing and reversing this immigration category, we may see a slight decline in the unemployment rate.”
It typically takes years for newcomers to assimilate into Canada’s job market fully: the unemployment rate for recent immigrants is more than double that of Canadian-born workers.
However, according to the data, immigrants tend to find employment at nearly the same rate as native-born Canadians after a decade or more.
Brendon Bernard, an economist at Indeed, describes the labor market as “splitting into two distinct groups.”
He notes that Canadians with stable careers are faring well, as layoffs haven’t been increased.
However, conditions are more challenging for gig workers or those new to the job market.
“Employers’ enthusiasm for hiring has significantly diminished, and a surge in population growth has led to an abundance of job seekers in Canada,” he said.
FAQs
Why are new immigrants facing housing challenges in Canada?
New immigrants face housing challenges due to skyrocketing housing costs in major urban centers and a shortage of affordable housing options.
What are the employment challenges faced by new immigrants in Canada?
New immigrants often need help with high unemployment rates, non-recognition of foreign qualifications, and lack of Canadian work experience.
How does the housing crisis impact the quality of life for immigrants?
The housing crisis affects immigrants’ financial stability, mental well-being, and overall quality of life, leading to stress and health issues.
What are some potential solutions to the housing crisis for immigrants?
Potential solutions include increasing the availability of affordable housing, offering subsidies, and implementing policies that address the unique needs of immigrants.
How can community organizations support new immigrants?
Community organizations can provide essential services such as language training, employment assistance, and social support, helping newcomers navigate the challenges of settling in a new country.
What are the long-term benefits of successful immigrant integration?
Successful integration leads to economic contributions, cultural enrichment, and a more inclusive society. Over time, immigrants find employment at nearly the same rate as Canadian-born workers.
