HomeBlogBrain Drain Alert: Why Canada’s Graduates Are Moving Out

Brain Drain Alert: Why Canada’s Graduates Are Moving Out

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Many Canadian graduates—both domestic and international—are leaving due to job market gaps, policy hurdles, and better opportunities abroad.

A Talent Exodus in Progress

Economic Pressures and Career Gaps
In the first quarter of 2025 alone, Canada lost approximately 27,086 citizens and permanent residents—a 3 % increase year-over-year—and saw a 54 % surge in departures of non-permanent residents, including international graduates. This “brain drain” reflects a deeper issue: highly educated individuals are uncertain about their long-term prospects in Canada.

When Policy Meets Frustration

Temporary Status and Complex Residency Pathways
International graduates face bureaucratic hurdles when transitioning from post-graduation work permits (PGWP) to permanent residency. These include employer hesitancy over LMIA requirements and the temporariness of their status. Additionally, recent caps on study permits and tighter eligibility for PGWPs and spousal work permits further complicate long-term stay decisions

Employment Barriers & Wage Gaps

Underemployment and Credential Struggles
International graduates often struggle to find roles that align with their education. By 2023, only 36.6 % of bachelor’s degree earners held degree-required positions, compared to 58.8 % among Canadian graduates. Wage gaps persist—international grads earn approximately 20 % less initially and 9 % less after five years

Isolation and Discrimination

Networks, Culture, and Workplace Bias
Many international graduates cite lack of professional networks, cultural disconnect, and experiences of discrimination as key factors in their decision to leave.. As one student shared:

“If I’m getting a really good job I wouldn’t have any problem staying… If not, I’ll go back.”

Global Opportunities Outshine

More Attractive Paths Abroad
Canada’s brightest—especially tech and research talent—are often lured by higher salaries, robust funding, and broader career prospects elsewhere. U.S. tech roles, for example, can offer salaries up to 46 % higher, alongside richer research support and stable career trajectories

Bottom Line

Canada’s post-graduation exodus stems from intertwined issues: bureaucratic immigration pathways, labor-market mismatches, insufficient integration and support, and stronger opportunities overseas. To retain talent, Canada must streamline residency processes, improve employment alignment, and ensure that graduates—both domestic and international—feel supported and competitive at home.

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