Is Canada driving its talent away?
In 2025, the job market seems to be a gamble in North America. Are Canadians staying or moving with the rise in unemployment rates?
“Go work for an American company,” said my friend, an international student. “Ideally, get a remote job and get your salary in USD. This way, you can still stay in Canada, or wherever else you want. Either way, you’ll get paid way more than you ever could in Canada.” This was their response to many University of Toronto Mississauga (UTM) students’ least favourite question: “What are your plans after graduation?”
This conversation has stuck with me ever since, because I couldn’t argue against it. I couldn’t think of a better post-graduation plan than hers. The unemployment situation for fresh graduates in Canada seems to worsen each year. According to Statistics Canada, the employment rate dropped to 60.5 per cent in August 2025.
As someone in their final year at UTM, several high-achieving colleagues of mine have already moved or are planning to move abroad to build a business or realize more ambitious careers. Some go to Europe and some to the US, and they won’t spare a glance at Canada. If you’re approaching your final year, are you thinking of doing the same?
Bigger bills, smaller salaries
“Canada may not be the best place for ambitious, goal-oriented go-getters,” said one UTM student, who is set to graduate this spring. She agrees that if she started her own company, instead of staying in Canada, she would move to a “tech hub” like San Francisco. “There must be a reason why they’re all [tech start-up CEOs] there.”
Many tech start-up CEOs trained in Canada’s top programs are now looking south of the border. For many, moving to the US feels like the natural next step, offering not only higher salaries but also access to investors who reward innovation rather than shy away from risk.
On LinkedIn, one user described the trend as a “talent drain” that threatens Canada’s once-promising start-up ecosystem. Others point to the country’s high cost of living and comparatively low wages as powerful push factors. Lower tax rates in the US and abroad make the move even more attractive, especially for young Canadians eager to build their careers.
As of 2025, Canadians often face a higher tax burden than many US residents, especially for middle-to-higher income earners when federal and provincial or state taxes are combined. For example, in many Canadian provinces, including British Columbia, the combined marginal tax rate on certain incomes surpasses what someone in a no-state-income-tax US state like Texas would pay. Also, average and median salaries in countries like the US, England, Singapore, and Australia often exceed those in Canada after currency conversion.
Do you have an incentive to stay?
On the other hand, some graduates are choosing to stay. “It doesn’t seem like the job market is any better in the US,” said a recent UTM graduate, who is soon going to start an office job at Loblaw’s. “I’m also pretty risk-averse. And I’m going to stay where I can find stability. I see myself growing at the company [Loblaw’s] for years to come.”
“People also don’t talk enough about healthcare,” argued the UTM student set to graduate this spring. “A big plus of Canada is the free healthcare services, which places like the US lack.”
Canada’s short salary ceiling is perhaps the price we pay for social security. In the U.S., people can make a lot more money, but the country has more problems. For example, the US has more poverty than Canada, as well as other nations. And since the government does not provide as much help, poverty in the US is more difficult.
Change the game, not the player
Canadian graduates like Ethan Ng on LinkedIn have questioned, “Do I stay and play small, or leave and build big?”
Many graduates don’t think Canada lacks talent. Rather, the country lacks the belief in and infrastructure to properly support and develop its talent to its full potential. Graduates and entrepreneurs are ready to seize opportunities, but they feel they aren’t given the chance to do so.
For graduates willing to take chances, many are leaving Canada in hopes of better opportunities. Some are calling on Mark Carney to take action, while some look forward to cultivating Canada’s entrepreneurial culture.
For students, graduates, job-seekers and entrepreneurs, it’s clear that Canada’s job market needs a change.
