The Harsh Reality of Canada’s Economy—And Why Indian Immigrants Feel It Most

A recent survey by H&R Block Canada reveals that 85% of Canadians are now living paycheque to paycheque, a significant increase from 60% in 2024. This trend is attributed to rising inflation, stagnant wages, and dwindling personal savings. ​

Key Findings from the Survey:

• 81% of Canadians worry their income isn’t keeping pace with the rising cost of living.​
• 74% report insufficient savings.​
• 62% indicate they lack funds to build savings after each paycheque.​
• 78% anticipate having even less to save in 2025.​

Indian immigrants in Canada are particularly affected. Darshan Maharaja, a Canada-based immigration analyst, notes that the increased cost of living over the past three years, coupled with stagnant incomes, has disproportionately impacted immigrants who were already at a financial disadvantage. ​

According to the 2021 Census, there are approximately 1.86 million individuals of Indian origin in Canada, accounting for about 5.1% of the population. The current economic challenges may prompt some to reconsider their future in Canada. Maharaja suggests that those planning to move to Canada should evaluate other potential destinations, citing an OECD estimate that projects Canada’s economy to be the worst performer in the G7 over the next decade. ​

The survey underscores the financial strain many Canadians, especially immigrants, are experiencing amid economic uncertainties.