Resilience in Crisis: Canadians and Immigrants Rising Above Paycheque-to-Paycheque Challenges

Canada is experiencing a deepening fiscal crisis with 85% of its citizens now saying they are living "paycheque to paycheque," a H&R Block Canada survey found. That's a big jump from 60% in 2024, reflecting the effects of increasing inflation, stagnant incomes, and lower personal savings. The survey also found that 81% of Canadians are concerned that their income is not keeping up with the cost of living, and 74% confess that they are not saving enough.

Indian immigrants in Canada are among the worst hit by such economic pressures. Immigration commentator Darshan Maharaja pointed out that the cost of living has increased in the last three years, while inflation-adjusted per capita GDP has increased by merely 0.5% in the last ten years. Immigrants, already economically disadvantaged, are finding it more and more challenging to survive in the current economic situation.

New data from Statistics Canada show that over 15% of immigrants leave Canada within 20 years of arrival, and less than half of permanent residents are opting for Canadian citizenship. International students, who comprise a significant share of new immigrants, are increasingly dropping out of their plans due to unaffordable housing and scarce opportunities for work.

The survey also uncovered troubling payment trends among Canadians. Nearly half (48%) pay major purchases with credit cards instead of savings, and 56% reported they would borrow to cover surprise bills like home repairs or doctor visits. With trade tensions between the US and Canada triggering economic uncertainty in the horizon, 78% of Canadians are forecasting their ability to save in the next several months will be lower. For the Indian migrants and others who are contemplating migrating to Canada, they should change their minds, say experts. Maharaja pointed out that the Canadian economy will have the worst record among the G7 economies for the next decade, according to OECD forecasts.

With increasing economic pressure across the country, nonetheless, Canada's reputation as a welcoming country of immigrants will come under test.

Source: Business Standard