The fading Canadian dream: How rising unemployment is forcing Indian students to reassess their future
Canada has long been seen as the ultimate dream destination for Indian students, and the numbers tell the story.?Between 2000 and 2021, Indian enrollment in Canadian universities skyrocketed by over 5,800%, surging from just 2,181 students to a staggering 128,928.?But it's not just students making the move.?Overall Indian immigration to Canada has more than quadrupled since 2013, reflecting a broader trend of people seeking better opportunities and a brighter future in the country.?However, that dream is beginning to fade.?
Rising unemployment casts doubt on Canada's promise
Canada is now grappling with rising unemployment, a situation some economists are calling alarming.?
In August 2024, the unemployment rate reached 6.6%, the highest it's been since 2017, excluding the COVID-19 period.?
This marks a sharp 4.3% increase from just the previous month, July 2024, and a staggering 22.9% rise compared to August 2023.?
According to a Reuters report, Canada's unemployment rate has increased by 1.6 percentage points since January 2023, a situation that some economists find concerning and are advocating for more significant rate cuts to stimulate economic growth.?
The rise in unemployment has been most pronounced among youth aged 15 to 24, with this summer marking the highest joblessness rate for this group in eight years. Additionally, the report highlights growing recession fears, as GDP growth has not kept pace with population growth in Canada.
How rising unemployment in Canada is expected to affect Indians
Indians, as the largest national group to obtain permanent residency in Canada, are likely to face significant challenges.?
Canadian companies have been grappling with high interest rates, leading to increased caution in hiring over the past two years.
Economists Royce Mendes and Tiago Figueiredo from Desjardins Securities noted in a research report on July 9 that, ¡°The record surge in immigration has meant that even the healthy pace of job growth over the past year has fallen well short of what would have been needed to keep the unemployment rate steady.¡±
The effects are already apparent: while Indians accounted for the largest share of study visas issued in 2023 at 37%, their application numbers have started to decline.?
Despite this decrease, Indian students still represent 41% of Canada¡¯s international student population. As they prepare to enter the job market, they will encounter various challenges ahead.
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