Canada is considered one of the best places to live and it is no coincidence that for decades it has been a center of attraction for immigrants from all over the world.
Now that seems to be about to change, as the high cost of living and volatile rental prices pose serious challenges for many people trying to make Canada their new home.
Figures for the first six months of 2023 show that 42,000 people left the country between January and June.
By comparison, a total of 93,818 left in 2022 and 85,927 in 2021.
The numbers look small amid expectations for 526,360 people to become permanent residents this year, but the number of departures nonetheless shows a worrying trend for a country that has traditionally relied heavily on immigration for economic growth.
This is especially true of recent years and the policies of the Liberal government led by Prime Minister Justin Trudeau.
It is precisely the sustainable attraction of immigrants that is one of the main tools by which Ottawa tries to stimulate economic growth by fighting the labor shortage in many sectors and the demographic problems associated with the country’s aging population.
Estimates show that more than 2.5 million people have gained permanent resident status over the last eight years of Trudeau’s administration, with China, the Philippines and India the top three sources of immigration.
Photo: BGNES Justin Trudeau’s government relies heavily on immigration to deal with its economic problems
In 2021, Canada even set an absolute record for its entire 150-year history – 23% of the entire population are immigrants, and forecasts indicate that this share may reach 34% in 2041.
However, the plans may fail because of the large outflow, which is provoked by the progressively increasing cost of living and especially the cost of renting and maintaining a home.
“I never thought I would come to a Western country and almost all my money would go to rent a room to live in,” Kara, who came from Hong Kong in 2022, told Reuters.
She says she pays C$650 in rent for the studio in east Toronto, which is more than 30% of her total income from three jobs.
A large part of the immigrant community cites the cost of housing as the main reason for their decision to go to another country or to return back to their home country.
It is estimated that in Canada, on average, about 60% of a household’s budget goes towards housing costs.
For large cities like Toronto, the ratio can reach as high as 80%. Some experts see a direct link between the efforts to attract more and more people from abroad and the deepening of the already existing problem of lack of housing in the country.
“Rapid immigration is exacerbating the crisis,” explains Phil Triadafilopoulos, a political scientist specializing in immigration at the University of Toronto. “So it’s not surprising that people who have a choice either move to another country or come back home after they already know what the situation is in Canada.”
It is for this reason that last week the Trudeau government revised its immigration targets for the next few years.
So the 2023 target is 465,000 new arrivals, rising to 485,000 in 2024 before reaching 500,000 in 2025 – a level that should then be maintained, with no increase.
“At this level, we will be able to synchronize the pace of economic growth with that of the population, while mitigating the negative impact on critical systems such as infrastructure and housing,” Migration Minister Mark Miller announced.
At the same time, an analysis by the country’s largest bank – Royal Bank of Canada (RBC) – shows that the current intake of immigrants, which annually represents about 1.3% of the total population, is not enough.
According to RBC, it is necessary to increase the flow to 2.1% if a way to deal with demographic problems is to be sought.
For some, however, it is too late.
Justinas Stankus is 38 years old and arrived in Canada from Lithuania in 2019 to complete his PhD in Political Science. He is now considering moving to Southeast Asia, where the cost of living is far more affordable and he will be able to finish his studies more comfortably.
He says he currently has $2,000 a month in rent and bills for a one-bedroom apartment.
“With the budget of a PhD student, I don’t have enough left to provide for the rest of my needs. It’s just very difficult to live like this,” Stankus claims.
2023-12-12 11:00:00
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