Why Students are Leaving Canada for a Better Financial Future

A University Career Fair. Source: Flickr

Conversations with Students Reveal Growing Uncertainty About Post-Graduation Life in Canada

By Sara Kim, Staff Writer

According to a 2024 article from RBC, Canada has a “growth problem.” A CBC article highlights that Canada is getting poorer compared to its peer states, such as Australia, New Zealand, and the United Kingdom. 

Over the past few years, the dissatisfaction over the current state of the Canadian economy has intensified. Within the student community, these concerns have surfaced through conversations with mentors, professors, peers, and friend groups. 

Many young people have begun to ask: Are we living in a stagnant economy? For lack of a better phrase, is Canada a lazy economy? Has it always been this way, or has the situation worsened since COVID? Is inflation to blame? 

And, should young people in Canada have to leave the country for a better financial future?

There are so many questions, but not enough answers.

Among young Canadians, particularly students, concerns about financial success are growing. The unemployment rate rose from 5.7% in January 2024 to 6.6% by August 2024, representing a 22.9% increase with over 1.46 million Canadians unemployed. The possibility of homeownership feels increasingly out of reach, and many are doubting if they could still build a future in the country. 

To explore if such concerns are leading students to consider leaving Canada, I spoke with a fourth-year international student studying finance and business in Ontario who requested to remain anonymous, and Nahil, a domestic student studying electrical engineering at Western University in London, Ontario. Their perspectives shed light on why more students in Canada feel compelled to seek opportunities abroad.

The Unattainable Dream of Homeownership

For many young Canadians, homeownership is no longer a realistic goal.

“We’re not even considering it,” Nahil admitted. “It doesn’t make financial sense.”

His immigrant parents who bought a home in Ontario many years ago did not face the same crushing inflation and mortgage interest rates that the young generation faces today. Nahil’s concern is not unfounded. Canada’s housing market, particularly in Toronto, is one of the least affordable in the world, ranking as the 10th most unaffordable globally.

Average home prices in cities like Toronto and Vancouver have surged past $1 million, far outpacing average wage growth. Even with a six-figure salary, high housing and transportation costs further erode purchasing power. 

Nahil voiced this concern, noting that owning an average $1 million home would require doubling a six-figure income, making homeownership feel like signing a “lifelong contract to the bank”—essentially working an entire lifetime to pay off a mortgage. Statistically, the average salary for most graduates is around $77,000, which falls far short of the financial threshold Nahil described. This highlights the growing gap between the annual income of a recent graduate and the housing market.

The international student echoed similar concerns, discerning that Toronto’s housing market is “crazy.” Rather than grappling with the thought of affording a home in Canada, she has already started looking into jobs abroad where salaries match living costs.

Canada’s Stagnating “Productivity” Problem

Beyond housing, the job market is a major reason students are considering leaving. 

The international student noted that “even if you do the same job in Toronto versus New York, your salary is lower in Toronto.” The discrepancy in wages and the strength of the U.S. dollar against the Canadian dollar makes opportunities abroad more attractive.

Nahil put it bluntly: “We invested so much time and money into education, and now the return is basically nothing.” Among his friends, there was a shared feeling that they had been led to believe earning a degree would guarantee financial security. Now, many find themselves trapped in a cycle of stagnant wages and rising living costs.

Among the interviewees, another recurring sentiment was the lack of innovation and “productivity growth” in Canada, which further discourages young professionals. 

“Canada is just working on the same… system. We have been relying on the same things for years, and it’s finally catching up to us,” Nahil observed. Without meaningful change, he and his peers feel there is little incentive to stay, with diminishing financial returns.

For both interviewees, conversations with peers and mentors have shaped their perspectives on Canada’s financial future. “I used to think staying in Toronto would be fine,” the international student explained, “but I kept hearing ‘Toronto is dying.’ Maybe they’re right.”

Professors have also contributed to these discussions. The international student recalled their economics and finance professors discussing Canada’s declining productivity at times. This topic has gained traction within academia, particularly in the fields of STEM, business, and economics. 

Leaving was Not Always the Answer

Despite their frustrations, neither student, especially Nahil, necessarily wants to leave Canada. “It’s not that I want to leave Canada, right? I love my hometown,” Nahil admitted. “[But] it’s getting to a point where I have to leave in order to live.”

From the conversations with both students, it seems that their decision to leave is driven not by a lack of attachment to Canada, but by financial necessity. Both students expressed that they would return, but only if Canada could offer financial stability. 

“If I come back, I need financial security,” Nahil said. “I don’t want to come back to a lower wage.”

Canada: A Country Worth Investing for Young Professionals? 

Canada faces a critical challenge: without meaningful economic change, young Canadians will continue to seek better opportunities elsewhere. The country risks losing a generation of educated and skilled professionals who want to stay but feel they can’t. 

As Nahil critically put it, “Canada has to recognize that it needs to invest in young Canadians if it wants to keep them.”

Until that happens, this trend will likely continue—students leaving in search of opportunities that Canada no longer adequately provides.