Highly Skilled Immigrants Are Leaving Canada at Record Rates
Outmigration Surges as One in Five Newcomers Leaves Canada Highlighting Reported Gaps in Retention and Economic Opportunity
Canada’s approach to immigration has long been seen as a beacon of opportunity and inclusion. Yet new empirical evidence from Statistics Canada and the Institute for Canadian Citizenship reveals a troubling trend: one in five immigrants leaves Canada within a quarter-century of arrival, with the highest losses happening in just the first five years.
The 2025 edition of The Leaky Bucket, an investigative study produced in partnership with the Conference Board of Canada, reports that “highly skilled immigrants are leaving Canada” at twice the rate of those with less education or training.
What Percentage of Immigrants Are Leaving Canada Overall?
The annual outmigration rate has climbed from a historic 0.9% to 1.2% over the past few years. Still, longitudinal analysis finds roughly 20% of immigrants exit Canada within 25 years—a substantial challenge for long-term retention and national growth.
Doctoral-level or highly skilled newcomers are especially at risk. According to Daniel Bernhard, CEO of the Institute for Canadian Citizenship, “our country’s ability to attract is no longer matched by our ability to retain. The data now show a continuing trend of immigrants, particularly those with in-demand skills, leaving before 25 years have elapsed.”
Why Are Highly Skilled Immigrants Leaving Canada Faster?
Growing numbers of highly skilled immigrants are leaving Canada, driven by a mix of economic and systemic challenges. Wage stagnation—notably among those with advanced degrees—was cited in The Leaky Bucket 2025 as a leading factor.
Many newcomers land prestigious jobs but face income trajectories well below expectations, especially in fields like engineering, healthcare, finance, and information technology. “Declining or stagnating incomes were cited as the key cause behind highly skilled immigrants choosing to leave Canada,” notes the ICC’s research, with business and professional occupations facing some of the sharpest drops.
Housing affordability has emerged as a deterrent, raising the cost of living for newcomers. Added to this are persistent credential barriers—foreign-trained professionals report lengthy, inconsistent recognition processes that stifle career advancement. These issues have worsened since the 2018–2021 period, exacerbated by intensified competition and policy shifts, including the ongoing trade war with the U.S., which has made American opportunities more appealing for skilled workers.
The rate of outmigration—especially among higher-income professionals—is steadily rising, with Atlantic Canada showing the highest regional loss (up to 36% over 25 years).
Insights from the Institute for Canadian Citizenship and The Leaky Bucket 2025
Bernhard said the new report reflects a “critical retention problem” at the heart of Canada’s immigration strategy. “Five years after landing, highly skilled immigrants are more than twice as likely to leave Canada as lower-skilled immigrants,” the ICC noted, using an analysis of 40 years of newcomer tax data.
The findings, echoed in Statistics Canada’s reporting and the 2025 Annual Report to Parliament on Immigration, illuminate the shortfall between high recruitment and long-term settlement.
The Leaky Bucket 2025 highlights that economic immigrants—those selected for potential to drive growth—are actually more likely to leave than those admitted under family, refugee, or humanitarian streams.
The Conference Board of Canada’s recent research emphasizes this risk: immigrants planning careers in high-growth sectors (such as business, finance, engineering, and IT) experience the highest rates of onward migration.
The Economic and Social Cost of Outmigration
What is one of the consequences of the emigration of highly skilled immigrants from Canada? The loss of productivity, innovation, and tax revenues looms large.
While short-term immigration targets are achieved, long-term retention falters, undermining Canada’s ability to fill persistent skills gaps. Analysts warn that the “leaky bucket” phenomenon is eroding vital sectors, including healthcare and technology, as well as manufacturing and finance. As population aging accelerates, every departure means slower economic growth and weaker competitiveness.
Prime Minister Mark Carney, addressing federal priorities, emphasized that the new immigration plan “must do better for newcomers and for everyone,” promising tighter matching of immigrant levels to national capacity and improved support for retention. Carney’s recent statements acknowledge the need to balance sustainable immigration levels with expanded housing, streamlined credentialing, and practical labour force integration.
Policy Solutions and the Path Forward
Policy experts advocate a suite of reforms to stem the tide of outmigration, especially among highly skilled immigrants. Credential recognition is top of the list: faster, clearer pathways for licensing and professional integration are urgently needed.
The Conference Board of Canada recommends targeted settlement supports and retention policies, such as equitable hiring, improved housing affordability, and expanded education and integration initiatives.
The federal government, under the revised 2025 Annual Report to Parliament on Immigration, has allocated new funding for credential recognition, especially in health care, and outlined caps to align intake levels with actual capacity.
But analysts say these fixes must be paired with continued support for long-term integration and workplace equity.
As Bernhard and the ICC conclude, “Canada’s ability to attract global talent depends on its commitment also to retain it.” The coming years will determine whether the country can transform promises into sustained inclusion—a decisive factor in its global competitiveness and social cohesion.
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