Savanna Hoffman
International students in Canada are often perceived as a rich source of revenue for the country's economy, with their expenditures contributing billions to Canada's GDP and supporting hundreds of thousands of jobs. While international students undoubtedly bring significant financial benefits to the country, it is important to recognize that not all international students in Canada are wealthy. In fact, many face financial concerns, cultural adjustments, and the pressure to excel academically to secure their immigration status. This highlights the need for Canadian institutions to provide tailored support and resources to ensure international students have a positive and successful experience during their studies and transition into the workforce.
| Characteristics | Values |
|---|---|
| International students in Canada are a rich source of | Highly-skilled global talent |
| Funding for Canadian post-secondary institutions | |
| Revenue for goods and services from overseas | |
| Jobs | |
| Tax revenue | |
| Number of international students in Canada | 621,000 in 2021 |
| 400,000 in 2021 | |
| International students' contribution to the Canadian economy | 37.3 billion in 2022 |
| 30.3 billion in 2022 | |
| 21 billion in 2021 | |
| Average per student expenditure | 49,500 in 2022 |
| Average expenditure of short-term students | 1,100 per week |
| Percentage of international students concerned about their ability to pay for their education | 80% |
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What You'll Learn
International students' contribution to the Canadian economy
International students make a significant contribution to the Canadian economy, and their importance is only increasing. In 2022, international students spent around $37.3 billion on tuition, accommodation, and discretionary items in Canada. This is a large increase from 2016, when the total spending of international students was $15.5 billion. This spending has a direct impact on the Canadian economy, with money being spent on Canadian goods and services, and it also increases production and demand for other goods and services.
International students' expenditures represent revenue for goods and services from overseas, and as such, they are considered Canadian exports of education services. In 2022, the value of international education services accounted for 23.1% of Canada's total service exports to the world and 5.1% of Canada's total merchandise exports. The top 10 source countries for international students contributed $26.4 billion in spending, which is 22.2% of Canada's total service exports.
In terms of GDP, international students contributed $30.9 billion to Canada's economy in 2022, or 1.2% of the total GDP. This is a significant increase from the $22.3 billion estimated in 2022. Ontario, with the largest number of international students, contributed the most to GDP, with $16.9 billion. International students also supported 361,230 jobs in Canada in 2022, and their spending contributed $7.4 billion in tax revenue.
International students are also an important source of talent for the Canadian economy. They are more likely than domestic students to study subjects such as engineering, math, and computer sciences, which are areas where labour shortages are projected. Additionally, international students are a key source of future permanent residents, with many choosing to remain in Canada after graduation. This helps to support Canada's economic growth and counteract the country's aging demographic.
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International students' impact on the labour market
International students are a vital pillar of Canada's immigration strategy, and they have a significant impact on the country's labour market. Firstly, international students are a rich source of highly skilled global talent. They are more likely than domestic students to pursue studies in fields such as engineering, mathematics, and computer sciences, which are areas projected to face labour shortages. This makes international students a key talent pipeline, addressing labour gaps in Canada's workforce.
The presence of international students also has a notable economic impact on Canada. International students' expenditures, including tuition fees, accommodation, and discretionary items, contribute significantly to the Canadian economy. In 2022, international students spent an estimated $37.3 billion, which supported 353,850 jobs and contributed $7.4 billion in tax revenue. This spending represents revenue from overseas, positioning international students as Canadian exports of education services.
The mix of international students in Canada is evolving, which may have implications for future labour market matches. While international students have traditionally concentrated in specific source countries, this is changing, potentially affecting the alignment between international talent and Canada's labour market needs. To retain international talent effectively, Canada must address challenges such as labour market misalignment and the complexities of its immigration system.
International students themselves are increasingly participating in the Canadian labour market. Regulatory changes have facilitated their employment while studying, and the share of international students with paid employment income has grown over time. International students may work to cover living costs, gain work experience, or enhance their prospects for permanent residency. Their labour market experiences can positively influence their subsequent economic activities, and former international students with Canadian work experience tend to earn higher wages.
To optimise the impact of international students on the labour market, Canada should focus on creating more work-integrated learning opportunities. Exempting students from additional work permit requirements for internships and co-op terms could enhance their ability to gain practical work experience. Additionally, stakeholders such as employers and educational institutions should collaborate on strategies that attract and retain international talent, ensuring that promising individuals remain in Canada to contribute to the workforce.
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International students' financial backgrounds
International students in Canada are often assumed to be wealthy, but this is not necessarily the case. While international students contribute significantly to the Canadian economy, with their combined spending reaching $37.3 billion in 2022, many of them struggle financially.
International students' expenditures cover tuition, accommodation, and discretionary items. In 2022, the average long-term international student in Canada spent approximately $49,500 per year. This is a significant amount, especially when compared to the average Canadian student's expenses. International students' tuition fees can be up to five times higher than those of domestic students, and they represent a substantial source of revenue for Canadian universities, accounting for about a third of tuition fees received.
The financial backgrounds of international students in Canada vary. A large number of these students come from humble backgrounds and may struggle to afford the costs of studying abroad. For instance, many Indian students attending English-language training schools to prepare for studying in Canada come from small farming families. These families often have to mortgage their farms to support their children's education.
The pressure to succeed academically among international students is immense. Failing to perform well can have severe consequences, including deportation. This pressure, combined with the financial burden, can take a toll on students' mental health. Surveys indicate that a significant proportion of international students in Canada are at risk of depression and anxiety disorders.
While international students bring valuable contributions to Canada, they also face challenges. The infrastructure to support their growing numbers has not kept pace, and they may struggle to access adequate career guidance, healthcare, and housing. Additionally, many international students find it difficult to transition to the Canadian workforce due to eligibility restrictions for government wage subsidies.
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International students' mental health
International students in Canada are a rich source of highly skilled global talent. They are also a vital source of revenue for Canadian universities, accounting for a third of tuition fees while making up less than a fifth of university enrolments. In 2022, international students contributed $37.3 billion to the Canadian economy, with an average expenditure of $49,500 per student per year.
However, the mental health of international students in Canada is a growing concern. Research shows that international students often experience higher levels of loneliness, anxiety, and stress than domestic students. They may also struggle with managing basic needs while forging a new life without familiar support systems. International students are more likely to report a hesitancy to seek support, which can exacerbate feelings of mental distress.
To address these concerns, many Canadian campuses have established international student support departments to provide assistance with various issues, including academic advising, mental health services, housing, financial aid, and legal aid. Additionally, programs like the Centre for Innovation in Campus Mental Health are working to improve global engagement and intercultural understanding within student success divisions.
It is important for international students in Canada to be aware of the support programs and resources available to them. Many institutions offer services and programs on campus, such as health and mental health services, international student centres, and student unions. Students can contact their institutions to learn about the specific services offered and how to access them.
Some provinces, like Alberta, British Columbia, Manitoba, and Newfoundland and Labrador, have also developed their own mental health resources specifically for international students. These resources can provide additional support tailored to the unique needs of international students in these regions.
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International students' transition to life after university
International students in Canada are a rich source of highly skilled global talent, with many choosing to remain in the country as permanent residents. They are twice as likely as domestic students to study engineering and more than 2.5 times as likely to study math and computer science, two areas where Canada faces potential labour shortages. International students also pay unsubsidized tuition fees, which are a vital source of revenue for Canadian universities. In 2018/2019, international students made up about a fifth of the student population but contributed over a third of tuition fees.
Transitioning to life after university can be challenging for international students in Canada. To help with this transition, some universities, such as Toronto Metropolitan University (TMU), offer tailored resources through their International Student Support (ISS) office. These services aim to support students' academic, language, financial, mental health, and social needs as they adjust to university life and plan for their future in Canada.
ISS offices often provide access to regulated international student advisors and consultants who can offer guidance on academic, personal, and professional goals. They may also assist with financial matters, including tax services and financial assistance, as well as providing information on awards and scholarships.
Additionally, international students in Canada can seek immigration advice from regulated consultants or advisors. This advice can help students who wish to remain in Canada after graduation, providing guidance on obtaining permanent residency or work permits.
To support the transition to life after university, universities can also facilitate work-integrated learning opportunities for international students. This can include internships and co-op terms, which may not always require separate work permits. These opportunities allow international students to gain valuable Canadian work experience and build a network that can support their career aspirations in the country.
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Frequently asked questions
It is a common misconception that international students in Canada are wealthy, but this is not the case for most students. Many international students struggle with the high costs of tuition and living expenses, and 80% are concerned about their ability to pay for their education.
International students contributed approximately $37.3 billion to the Canadian economy in 2022. This includes money spent on tuition, accommodation, and discretionary items. International students also supported 353,850 jobs in Canada in 2022.
Canada is facing a labour crisis and an aging population, so international students are a vital source of highly skilled global talent. International students are also a significant source of revenue for Canadian universities, accounting for a third of tuition fees received.
International students in Canada face challenges such as inadequate support for their careers, healthcare, and housing. Many struggle to find meaningful work and are ineligible for government wage subsidies. There is also a lack of regulation around unethical recruitment agents, which can result in low-quality experiences for students.
Governments and post-secondary institutions should invest in improving the international student experience by providing tailored health and career services and building more on-campus housing. Canada should also create more work-integrated learning opportunities for international students to help them transition to life after university.
