Updated on November 20, 2025, 10:07 AM EST (Toronto Time)
Canada’s Dependence on Immigration
Canada’s economic future relies heavily on immigration due to an aging population, low fertility rates, and labor shortages. Various sectors like technology, healthcare, and construction heavily depend on newcomers.
A recent study, The Leaky Bucket 2025, has uncovered a concerning trend where highly skilled immigrants are leaving Canada at increasing rates, posing a challenge to the country’s long-term economic success.
The focus of this article is to outline the key findings of the study and explore the reasons behind why skilled newcomers are departing Canada in such significant numbers.
Key Findings of the Study
The report indicates that one in five immigrants leaves Canada within 25 years of arriving, with a peak in migration during the first five years. Higher education is linked to higher departure rates, especially among highly skilled workers. Occupations like engineering, ICT, and business management show weak retention.
- Earnings stagnation and unemployment before departure increase the likelihood of leaving.
- Settlement services do not cater adequately to highly skilled immigrants.
- Provinces like the Atlantic region, British Columbia, and Quebec exhibit weak long-term retention.
- Most migrants leave from the province where they initially settled.
The study emphasizes that while Canada excels in attracting global talent, retaining that talent, particularly in key sectors, remains a significant challenge.
Reasons for Skilled Immigrants Leaving Canada
The departure of highly skilled immigrants is not random but reflects systemic issues within Canada’s labor market, credentialing system, and work environment. The following are the primary reasons identified in the study:
1. Limited Recognition of Foreign Credentials
Recognition of foreign credentials poses a significant challenge for highly educated immigrants as they often face complex licensing processes or Canadian-specific training requirements, leading to income loss and a lack of career growth.
2. Underemployment in Highly Skilled Fields
Underemployment, especially for those with graduate degrees or professional experience, is a key driver of onward migration. Newcomers often find themselves in roles below their qualifications, hindering their earning potential and career advancement.
3. Income Stagnation and Lack of Career Growth
The study highlights a strong correlation between income stagnation and skilled immigrants leaving Canada. When individuals experience a lack of earnings growth or career development, they are more likely to seek opportunities elsewhere.
