5 Reasons Why Indian Students Want to Leave Canada

We’re seeing an alarming rise in new Indian international students who want to leave Canada to explore better opportunities elsewhere.

Here are five reasons driving this trend and why “leaving Canada” has become a prominent consideration for many Indian and international students.

1. Canada’s Extreme Cost of Living

Canada’s rising cost of living has become a significant reason behind why Indian students want to leave Canada. Rent, food, transportation, and other essentials are draining bank accounts faster than many anticipated. In urban centers like Toronto and Vancouver, housing costs have skyrocketed. The average monthly rent for a one-bedroom apartment in Toronto now exceeds CAD 2,500, forcing many students to share apartments with multiple roommates. Reports reveal that some newly arrived Indian nationals endure living with 4–6 people in small apartments, leading to subpar living conditions.

This financial strain isn’t limited to rent. Groceries, utilities, and public transportation costs have also soared. Food prices in Canada increased by 9.1% year-over-year as of 2024, making even basic necessities harder to afford. For students working part-time at minimum wage (averaging CAD 15–17/hour), balancing tuition fees and living expenses has become nearly impossible.

Moreover, wage growth in Canada has failed to keep pace with inflation, exacerbating the financial gap. Indian students, who often come with limited financial reserves, find themselves struggling to make ends meet. Many are reconsidering their decision to stay in Canada, exploring destinations with a lower cost of living or returning home where their money stretches further.

For more on why financial struggles are prevalent, read our article: Layoffs in Canada Exploding: What to Know.

High Cost of Living in Canada: The Data

The cost of living in Canada is among the highest in the world, especially in major urban centers like Toronto, Vancouver, and Montreal. Indian students, many of whom arrive with limited financial resources, are particularly vulnerable to the pressures of rising rents, inflated grocery prices, and unaffordable transportation costs.

Let’s Look At the Cost Data in Canada

• Housing Costs:
  The average monthly rent for a one-bedroom apartment in Toronto is CAD 2,500, while students in Vancouver pay even more at CAD 2,700 on average. To cope, many Indian students resort to sharing accommodations, with up to 4–6 people living in a single apartment.
• Tuition Fees:
  Indian students in Canada pay some of the highest tuition fees globally, with an average annual cost of CAD 30,000for undergraduate programs. This is nearly 3 times the tuition fee for domestic students.
• Basic Necessities:
  According to Statistics Canada, food prices have risen by 9.1% year-over-year as of 2024, with groceries costing around CAD 400–600 per month per person. Transportation and utilities add another CAD 300–500 per month.

Financial Pressure For International Students and Canadians

These escalating costs often lead Indian students to take on part-time jobs, which pay an average hourly wage of CAD 15–17, barely enough to cover basic expenses. Many find themselves working multiple jobs, which detracts from their academic performance and overall well-being.

Figure 1. A graph comparing the average monthly expenses for Indian students in Toronto, Vancouver, and Montreal.

Figure 1 shows the total monthly living expenses for Indian students in three major Canadian cities—Toronto, Vancouver, and Montreal—highlighting the financial burden of residing in these urban centers.

1. Toronto:
   • With an average monthly cost of CAD 3,200, Toronto ranks as one of the most expensive cities for Indian students. Housing costs dominate, accounting for nearly 80% of expenses.
2. Vancouver:
   • Vancouver tops the list with total monthly costs of approximately CAD 3,470. The high cost of rent and food makes it particularly challenging for students to manage.
3. Montreal:
   • Although more affordable, Montreal still imposes significant financial strain, with total costs averaging CAD 2,430 per month. This is largely due to slightly lower housing and transportation expenses compared to Toronto and Vancouver.

What the Data Tells Us

The graph illustrates why the high cost of living is a driving factor behind why immigrants and new students want to leave Canada. Key takeaways include:

• Housing as a Major Expense: Rent accounts for nearly 70–80% of living costs in all cities, forcing many students to live in overcrowded conditions. Sometimes even multiple people to one basement.
• Regional Disparities: While Montreal is slightly more affordable, the difference is not substantial enough to ease the financial burden significantly.
• Financial Strain: For students earning CAD 15–17/hour in part-time jobs, even the lowest monthly expenses shown on the graph are difficult to sustain without additional financial support.

This unsustainable financial situation is leading many Indian students to explore alternatives, including relocating to more affordable countries or returning home. ​

2. Canada’s Sputtering Employment Opportunities

For Indian students pursuing higher education in Canada, post-graduation employment is a critical consideration. However, the Canadian job market has proven to be less promising than anticipated. Despite holding advanced degrees, many international students face significant challenges securing jobs in their fields of study.

Indian students, in particular, find themselves stuck in precarious jobs that are often unrelated to their fields of expertise. A 2024 report highlighted that 67% of Indian graduates in Canada are working in low-wage or part-time positions, significantly higher than the national average for international graduates.

This disconnect between education and employment prospects leaves many Indian students disillusioned. For some, countries like the United States or Australia, where job markets are more robust, offer a more appealing alternative.

Employment Challenges for Indian Students in Canada

Indian students often invest heavily in their education in Canada, expecting the country’s workforce to welcome them with open arms upon graduation. However, research shows that a growing disconnect exists between academic credentials and employment opportunities.

According to data from Statistics Canada, unemployment rates for recent international graduates (aged 20–29) stand at around 10%, significantly higher than the national average of 5.5%. For Indian students, the situation is particularly grim: a report by the Centre for International Education revealed that 67% of Indian students find themselves employed in low-wage or part-time jobs unrelated to their field of study within two years of graduation.

Key factors contributing to these employment challenges include:

• Workplace Bias: Many employers prefer candidates with “Canadian experience,” leaving international students at a disadvantage.
• Limited Work Permits: Post-graduate work permits (PGWPs) expire after three years, pressuring students to secure stable jobs quickly.
• Job Market Saturation: Popular cities like Toronto and Vancouver face significant job market saturation, particularly in fields such as IT and engineering.

Employment Challenges for Indian Students in Canada : The Data

Figure 2. A graph that compares employment outcomes for Indian graduates versus all international graduates in Canada.

Figure 2 compares employment challenges faced by Indian students versus all international students in Canada across three metrics:

1. Unemployment Rate:
   • Indian students face a 10% unemployment rate, slightly higher than the average 7% for all international students. This indicates that Indian graduates experience more difficulty securing jobs after graduation.
2. Low-Wage Jobs:
   • A staggering 67% of Indian students are employed in low-wage jobs, compared to 55% of all international students. This highlights the disproportionate reliance on survival jobs among Indian students due to limited opportunities in their fields.
3. Jobs Unrelated to Field:
   • Similarly, 67% of Indian students find themselves working in positions unrelated to their academic background, compared to 48% for all international students. This suggests a severe skills-utilization gap for Indian graduates.

What the Data Tells Us

The graph underscores the employment disparities Indian students face within Canada. It reveals:

• Structural barriers such as job market biases and restrictive immigration policies disproportionately impact Indian students.
• Indian students are more likely to settle for jobs outside their areas of expertise due to financial and legal pressures.
• The Canadian job market may not fully capitalize on the skills and education of its international talent pool.

These trends are driving many Indian students to explore opportunities outside Canada, contributing to the growing interest in leaving the country.

3. Canada’s Lack of Legal Permanent Opportunities For New Immigrants

For many Indian students, the ultimate goal of studying in Canada is to gain permanent residency (PR). Whether it’s through studying here and finding a job, or getting a Post Graduate Work Permit and increasing your score in the Comprehensive Ranking System (CRS).

However, achieving that golden PR status has become increasingly challenging due to, well, the severe lack of jobs in the Canadian economy, stricter immigration policies, and rising points requirements in the Express Entry system.

In recent years, the minimum Comprehensive Ranking System (CRS) score for PR eligibility has climbed significantly, making it harder for international graduates to qualify. While students invest years working on temporary permits and short-term contracts to build their profiles, many find the process slow and uncertain.

Adding to the frustration is the lack of transparency in immigration policies, compiled by the changing sentiment on immigration policy shared by Canadians. which are often subject to sudden changes. For Indian students who view Canada as a long-term destination, this uncertainty can be a dealbreaker. And in 2024,

Other countries, such as Thailand and the UAE, with more streamlined immigration pathways, are becoming attractive alternatives. For those stuck in this cycle, seasonal employment options have also dwindled.

4. Social Challenges in Canada

Although Canada’s multiculturalism is one of its main draws, adapting to a new social and cultural environment remains a challenge for many Indian students. Cultural differences, combined with financial and academic pressures, often lead to feelings of isolation.

Building a support system in Canada can be difficult, especially for those who come from close-knit communities in India. Some students report struggling to integrate socially or make meaningful connections outside their cultural groups. This sense of alienation is compounded by instances of discrimination and racism, which, while not widespread, do occur.

The lack of community support, coupled with social challenges, can make life in Canada feel unwelcoming. For Indian students, countries like the UK or the US, where Indian communities are well-established, may offer a stronger sense of belonging.

5. Many See Better Opportunities Outside Of Canada

As living in Canada becomes increasingly difficult, the students that want to leave Canada are looking to other countries for better opportunities. The United States, despite its own challenges, remains a popular choice due to its stronger economy and abundant job opportunities for skilled professionals. Additionally, countries like Germany and the UK offer high-quality education with more straightforward pathways to permanent residency and citizenship.

Some students are also choosing to return to India, where the economy is growing rapidly, and demand for skilled professionals is on the rise. Returning home allows students to reconnect with family and enjoy a familiar cultural environment while leveraging their international education to build successful careers.

Why Leaving Canada is the Next Step for Many

The growing trend of Indian students leaving Canada highlights the mismatch between expectations and reality. While Canada still attracts thousands of international students annually, the rising costs, employment challenges, and limited pathways to permanent residency are driving many to explore other options.

Planning your next steps carefully is crucial if you’re considering leaving Canada. Whether you’re looking to move to another country or return home, ensure that you’re fully prepared to navigate the complexities of emigration.

Plan Your Exit with Confidence

If you’re thinking about leaving Canada, don’t do it alone. Check out our Complete Canadian Exit Guide, a step-by-step resource designed to help you transition smoothly.