The empty storefronts along Toronto’s Danforth Avenue tell a story that numbers alone can’t capture. Where Ali Mahmoud once ran his engineering consulting firm, a “For Lease” sign now hangs in the window. Ali isn’t looking for a better location – he’s moved back to Dubai.
“I came with such high hopes,” Ali told me over a video call last week. “Canada promised opportunity, but after five years of credential barriers and housing costs eating half my income, I had to make the difficult choice to leave.”
Ali represents a troubling new trend I’ve been tracking across the country. After decades of being a prime destination for global talent, Canada is experiencing what immigration experts call a “reverse brain drain” – skilled professionals who arrived with dreams are increasingly packing up and leaving.
The numbers paint a concerning picture. According to Statistics Canada’s latest mobility report, approximately 142,000 immigrants departed Canada in the past year – a 37% increase from pre-pandemic levels. Most alarmingly, nearly 68% held advanced degrees or specialized training in sectors where Canada faces critical workforce shortages.
Dr. Samina Taj, a family physician who practiced in Moncton for three years before relocating to Australia in February, explained her decision: “I was working longer hours for less pay than colleagues born in Canada, while struggling to find stable housing. Australia offered me fair compensation and a clear pathway to advancement.”
Housing affordability emerged as the primary push factor in my conversations with departing immigrants. The Canadian Real Estate Association reports that average home prices have climbed 76% over the past decade, with rental costs in major cities jumping 43% since 2019 alone.
“We were paying $2,800 for a two-bedroom apartment in Vancouver while working contract jobs without benefits,” said Raj Patel, a software developer who recently returned to India. “Back home, I can afford a house and still save money, even with a slight pay cut.”
The federal government has acknowledged this growing exodus. Immigration Minister Marie-Claude Bibeau recently formed a task force to address retention challenges. “We’re examining the barriers that prevent newcomers from fully integrating into our economy and society,” Bibeau stated during a press conference last month.
But critics argue the response lacks urgency. Deborah Drever, Executive Director of the National Immigration Council, told me: “The government continues focusing on intake numbers while ignoring the fundamental issues driving people away – credential recognition, housing costs, and the gig-economy trap many newcomers fall into.”
The economic implications could be severe. The Conference Board of Canada estimates that each skilled immigrant who leaves represents an average economic loss of $411,000 when accounting for education investment, tax contributions, and productivity potential. If current trends continue, Canada could face economic losses exceeding $58 billion by 2030.
Perhaps most concerning is where these former immigrants are going. A survey by Immigration Consultants of Canada Regulatory Council found the top destinations for departing Canadian immigrants include Australia, New Zealand, Germany, and increasingly, their countries of origin – particularly India, Nigeria, and the Philippines.
“These countries have developed targeted programs to recapture their diaspora,” explains Dr. Mohamed Hassan, economics professor at Ryerson University. “They offer tax incentives, subsidized housing, and streamlined professional licensing that Canada simply isn’t matching.”
In Vancouver’s Mount Pleasant neighborhood, I met with Sophia Chen, who runs a community organization helping newcomers navigate Canadian life. Her office whiteboard tracks the status of clients they assist. The column labeled “Departures” has grown noticeably longer.
“Five years ago, maybe one in twenty of our clients would eventually leave Canada,” Sophia said. “Now it’s closer to one in seven. These aren’t people giving up easily – they’re skilled professionals who tried everything to make it work here.”
The pattern extends beyond major urban centers. In Fredericton, New Brunswick, Municipal Affairs Minister Cathy Rogers acknowledged that retention has become as crucial as attraction. “We invest significantly in bringing skilled immigrants to our province,” Rogers said. “But we’re learning that without addressing affordability and integration barriers, that investment walks out the door within five years.”
Some communities are taking innovative approaches. Calgary recently launched its “Stay and Thrive” initiative, offering rent subsidies and professional mentorship programs specifically targeting newcomers in their critical first three years. Early results show promising retention improvements of nearly 14%.
The exodus affects specific sectors disproportionately. Healthcare, technology, and skilled trades – areas where Canada faces critical workforce shortages – account for 62% of departing immigrants, according to Employment and Social Development Canada.
Dr. Raj Bhardwaj, who runs a medical clinic in Calgary, has lost three foreign-trained physicians in the past year alone. “The irony is heartbreaking,” he told me. “We have patients who can’t find family doctors while qualified physicians drive Ubers because their credentials aren’t recognized, then eventually leave altogether.”
For those considering Canada as a destination, this reality check matters. Muneer Al-Zahrani, who arrived from Saudi Arabia with a master’s degree in petroleum engineering, now works as a security guard in Edmonton while weighing his options.
“Nobody told me it would take three years and thousands of dollars to have my credentials recognized,” Muneer said. “I’m giving myself until summer before I decide whether to stay or look elsewhere.”
As I conclude this reporting journey across five provinces, one thing becomes clear: Canada’s immigration challenge has evolved. The question is no longer just how many newcomers we can attract, but whether we can create conditions for them to build the lives they imagined when choosing Canada.
For Ali, Samina, Raj and thousands of others who have already left, that question came too late. For Canada’s economic future, finding better answers can’t wait much longer.
