Dear Mr Brown,

Canada is becoming too expensive to live. I just received my permanent resident card. Thank you for all of your help. However, I am not sure how long I can remain in Canada with the price of everything going up like this (gas, food, everything!) Do you have any advice or information to assist me? I feel like I cannot manage.

— MB

Dear MB:

I understand your position. The cost of living is rising significantly in Canada, although this seems to be the case globally. I believe the post-pandemic demand for goods and services, the global supply chain issues, the situation in Ukraine and the shutdown of China have all contributed to inflation. I am not a financial advisor or economist. However, I can respond to your query from my perspective.

Inflation

Canada’s annual inflation rate hit 8.1 per cent in June, up from 7.7 per cent in May, driven by higher oil and gas prices as well as virtually every other cost. It is the highest inflation increase in approximately 40 years. In contrast, the target inflation rate is 2 per cent. The central bank of Canada stated that the expectation for inflation is around 8 per cent for the next few months. It also increased the interest rate by 100 basis points in an attempt to cool the economy.

Rising cost of living

According to a national survey, 30 per cent of new Canadians aged 18-34, and 23 per cent of university-educated new Canadians, have indicated that they are likely to move to another country in the next two years.

The results of the survey suggest that although the participants generally believed Canada provided a good quality of life for immigrants, Canadians were more likely to have a positive outlook on Canada’s prospects for immigrants than the immigrants themselves.

The main challenge for immigrants raised in the survey is the cost of living in Canada. According to the survey, 75 per cent of new Canadians between the ages of 18 and 34 said they believe the rising cost of living means immigrants are less likely to stay in Canada.

Economists warn that inflation rates could get even higher. This is a cause of concern for new immigrants who may be just entering the workforce. The federal government of Canada plans to increase the number of new permanent residents over the next three years to fill labour market gaps. As such, Canada may need to offer more support to new Canadians in light of the inflation concerns because new immigrants have different challenges than more established Canadians and permanent residents.

I hope everything works out for you in the long term. However, it seems that things will become worse before it gets better, as rising interest rates tend to lead to recessions, which many corporations are expecting to occur in 2023.

Please visit JAMAICA2CANADA.COM for additional information on Canadian Permanent Residence programs, including Express Entry, The Study & Work program, Visas or Appeals, etc.

Antonn Brown, BA, (Hons), LLB, MSc, RCIC, is an immigration counsel and an accredited Canadian education agent of JAMAICA2CANADA.COM—a Canadian immigration & education firm in Kingston. Send questions/comments to documents.jamaica2canada@gmail.com