Canada’s citizenship rate has declined in recent years, with the percentage of permanent residents obtaining citizenship within 10 years in 2021 down 14 percentage points since 2016 and nearly 30 percentage points since 2001. While pandemic-related restrictions played a role in lower citizenship rates between 2016 and 2021, the citizenship rate still declined more quickly within that period even when taking into account that context. Naturalization rates are lower among immigrants with low levels of income, proficiency with official languages and educational attainment. Changes to citizenship tests, increases in language requirements, and fees to apply for citizenship may have also impacted naturalization, presenting a challenge among low-income immigrant families and refugees. Citizenship rates tend to be higher among those who have been in Canada for longer periods of time.

The proportion of recent immigrants with French as their first official language spoken declined across Canada in 2021 compared to five years earlier. Nonetheless, there has been growth in the proportion of Francophone immigrants in some provinces outside Québec. IRCC reported in 2022 that a federal government target – that at least 4.4% of immigrants that settle outside Québec speak French – was reached a year early, with positive implications for minority Francophone communities. Provinces such as officially-bilingual New Brunswick have targets for Francophone immigration that are even more ambitious. The federal government also took steps in 2023 to increase attraction and recruitment of French-speaking immigrants.

There was significant growth in the number of temporary foreign workers in Canada in 2022, continuing a trend from previous years. Approvals under the temporary foreign worker programs increased 68% between 2021 and 2022, as the government broadened the ability for employers to access low-wage temporary workers. Canada has increasingly relied on temporary foreign workers to address labour challenges and temporary immigration has become a key driver of population growth. Temporary foreign workers are more likely to have precarious work arrangements and they typically lack the same types of supports available to permanent residents. Greater opportunities for temporary workers to transition to permanent residence will have long-term benefits. In addition, more stringent criteria for employers to access low-wage temporary foreign workers may incentivize them to invest in increased wages and better working conditions for Canadians and permanent residents.

Canada continues to accept high numbers of permanent residents who previously held a study permit. While there was a decrease in the number compared to the previous year in 2022, this was due to a temporary federal initiative which made it easier for international students to transition to permanent status (designed to make up for declines in immigration during the pandemic in 2021). In recent years, the number of international students in Canada has grown significantly. With this growth has come increasing concerns about the supports available to students and the quality of education offered by some institutions. Housing and income security challenges for international students have also deepened as housing pressures on communities have grown. In January 2024, the federal government announced major reforms designed to address these issues including a two-year cap on international study permits. Efforts at reform open opportunity for long-term planning focused on student experience, community readiness, and transitions to permanent residence.

The income gap between immigrants five years after arrival and all Canadians increased in 2021, following some improvements in closing the gap in recent years. Increases in immigrant income are connected to more immigrants arriving with Canadian work experience. Pandemic supports helped improve incomes in 2020 but these were temporary in nature. The income gap has since increased and immigrant wages remain lower than the overall population. This is a challenge as Canada’s cost-of-living has risen, which has a more significant impact on those with lower incomes. Language barriers, lack of recognition of foreign credentials and discrimination are among the factors that can lead to the talents of newcomers being unrecognized in the labour market. There have been some recent steps to address barriers such as efforts in Ontario to remove Canadian work experience requirements for foreign-trained professionals, beginning with the engineering field. Temporary foreign workers tend to have lower incomes and may face a more significant income gap.

Provincial retention slightly increased in 2021 compared to the previous year. However, there remains significant variability in immigrant retention rates across Canada, with provinces in Atlantic Canada continuing to have some of the lowest rates. The Provincial Nominee Program has helped to address retention challenges, with recent data indicating retention remains high a year after arrival through the program at 89% across the provinces. However, though there have been some improvements, gaps in retention rates persist – with Prince Edward Island, Newfoundland and Labrador, and New Brunswick having the lowest retention levels. Retention rates have been impacted by factors such as differences in unemployment across provinces. While the retention rate for Canada overall remains high, there are increasing concerns about recent immigrants leaving Canada. Providing immigrants with positive experiences early in their arrival can help improve retention in future years.

There was a significant drop in public support for immigration levels in 2023 by 18 percentage points compared to the previous year. The proportion of Canadians who agreed with the view that there is too much immigration hit a level not seen for two decades, with concerns connected to a lack of affordable housing. However, most Canadians still view immigration – and immigrants – as positive for the country and an important part of Canadian society. Some economists are raising concerns about the impact of immigration on economic indicators such as productivity and GDP per capita. There are mixed views on the degree to which immigration impacts these indicators. However, concerns raised among experts about the impacts of immigration on the economy can impact public sentiment. Changing public and expert views on immigration highlight the importance of having the infrastructure in place to support a growing population in Canada and strong leadership on national immigration policies, as well as the importance of a long-term lens on the impacts of immigration.

Canada’s third-place ranking on the Nation Brand Index in 2023 remained consistent with the previous year. Canada continues to be perceived in a positive way internationally and is considered among the most trustworthy, generous and safe countries. Canada ranked at the top on its ability to attract talent and capital, with immigration continuing to help Canada build its strong reputation. However, tense international relations such as with India in 2023 are a potential threat to Canada’s reputation. Additional challenges include increasing cost of living and housing unaffordability which can impact perceptions of Canada abroad by prospective newcomers. Likewise, policy shifts on international student admissions may affect Canada’s attractiveness as a study destination.