🍁Canada’s Brain Drain Rocketing
Canadians choosing to move to the US and work there is nothing new. For decades, the exodus has been strong, except for the last decade where it declined.
But starting in 2022, there was a notable jump in emigrations to the US. Canada’s CBC news network ran a report using US Census data which showed 126,340 people left Canada for the U.S. in 2022, a 70% increase over a decade ago. Stats for 2023 aren’t available yet. Now with the tariff turmoil, weakening Canadian dollar, ultra-high cost of living, high taxes (29% in Ontario, 22% in Texas) low and slumping wages and rising unemployment, we might expect the brain drain to reach epic proportions.
For skilled, educated and talented workers, the benefits of a US job are higher than average emigrant. Canadians know about Jim Carey, Ryan Reynolds and Elon Musk and how they’re doing down in the states. And it’s hard not to dream about moving south ourselves. For most, it will be the right move personally.
According to Statistics Canada, in 2021, the Canadian median income was $50,348 in USD whereas in the same year, the US median income was $70,784 USD, according to the US Census.
The exodus is a major cause for concern and something everyone needs to be talking about. We’re losing our best minds and entrepreneurs and these are the people that drive small business success in Canada. Even large corporations are leaving too, which means fewer jobs for the top non-entrepreneurial segment.
The Woke Tried to Put us to Sleep. Is Trump Trying to Wake us Up?
When Donald Trump put the pressure on Canada to become the 51st state, a dreadful suggestion, Canadians then learned more about the real condition of their lives. Trump was putting our nation’s worth into question, and letting us see the reality of our government more clearly. Should we be thankful? The most recent report on Canadian’s average income shows it was lower than any US state except Mississippi.
Every time there’s a discussion, a painful truth about the Canadian condition is revealed. And when Liberal political pundits (CBC, CTV, Global networks) speak of Canada’s economic situation, they always avoid this topic of the waves of Canadians choosing to leave, along with the debt, and lack of investment here, for us who remain.
Canadian Economic Outlook Increasingly Grim
The Canadian economic outlook right now is brutal and depressing, courtesy of the socialist Liberals who know nothing about creating business and a lot about printing money. Canada’s national debt https://www.debtclock.ca/ reached another record at $1.2 Trillion. That’s not up to the US’ deplorable $36.6 Trillion situation, but with the Ottawa government keen on oppressing Canada’s natural resource sector, where is the room for optimism?
It’s apparent to most Canadians that after 9 years of Trudeau’s policies and actions, Canada is a tough place to be. His policies have brought in many millions of immigrants when jobs and housing wasn’t available for them. And as jobs disappear, these foreign entrants may have little to look forward to. The newcomers could become a burden on the government’s social programs, perhaps threatening to bankrupt the system by 2026.
The key point about talent exodus to the US, is how it hurts our economy and businesses, when the best leave. And this affects whether Canadian businesses will decide to invest in future business, or to move to the US themselves.
And what about all those immigrants the Trudeau government was pulling in over these years? It appears they’re leaving too! And as this chart shows, those who were born in the US, are deciding to return there in bigger numbers.
And we wonder how many Canadians would exit if they could get into the US. If Trump opened the door for Canadians, the exodus would likely destroy the country.
Add on the potential break up of Canada with the Wexit movement, and we have a country divided and crippled. Western Canada is discussing their future vs the east, and aside from Ottawa’s interference issue, they might also decide that Eastern Canada is just dead weight going forward. Ottawa’s top task now is to prove that wrong. We’ll see how successful Canada’s top banker will be.
My guess is that we’ll see an election by 2026, as Canadians realize they’ve made a massive mistake. It could be why the Conservative Party is keeping Pierre Polievre around — someone Canadians voters strongly dismissed in the election. But his turn may come soon.
Businesses Checking Out
The business exodus is one facet of the brain drain, where our best business entrepreneurs are checking out too.
CBC reported that Canada has lost a staggering 100,000 entrepreneurs over the last 20 years, despite growing 10 million in population. Only 14% of Canadians are reporting to be entrepreneurs.
“Twenty years ago, there was three Canadians in 1,000 every year becoming an entrepreneur,” Pierre Cléroux, BDC’s chief economist, told CBC News. “Now we’re down to about one for every 1,000 people.” — CBC report.
Do We Even Have Entrepreneurs and Financiers?
A Business Development Canada survey of 1,250 entrepreneurs found marketing and finance skills are key to helping a business get started, while administration and operations skills are needed to keep it going, and leadership and people skills are essential to create growth. Entrepreneurs are often younger in age, and Canadians are getting older.
The question is, are the remaining people capable of assuming entrepreneurial roles? And where will they get low rate financing in a weak Canadian economy shut out of the US market? Why would anyone bother with this scenario? It’s easier to move to the US, and enjoy a better climate, lower cost of living, and higher wages. And houses are 20% cheaper in the US which makes young people believe home ownership might be possible in that country. Data shows women make a larger percentage of those leaving to the US, and men comprise most of those arriving from 3rd world countries.
Another poll found that 76% of Canadian business owners plan to exit business within the next decade, representing $2 trillion in business assets, yet fewer than 10% have a formal succession plan. Now they have no one to sell the business to, and few qualified to run it.
Worse still is a report from the Fraser Institute that shows Canada is losing corporate head offices too. Canadian and foreign-owned companies are being forced by Donald Trump to move to the US, or face crippling tariffs. Carney’s economic platform plans to spend $230 billion more to support the country during this economic emergency, which means taxes will rise. That’s not an attractive prospect for any company weighing their options.
Canadians Just Asked for More Pain and Disappointment!
Incredibly, Canadians re-elected the political party that is primarily responsible for the loss and the current hopeless situation, led by Mark Carney, who is a big proponent of industry-killing regulations such as net zero.
Are the Tariffs Really an Issue?
The US tariffs are deflating sales and hope across the country, however, in truth, this downward trend for the country is nothing new. It’s been going on for at least 50 years as the US market beckons Canadian talent, while Canada has moved increasingly socialist and anti-business. Tariffs just push us into crisis.
And the Tariffs are improving the US economy strongly. The US is now recovering and its cities are being cleaned up.
A Bank of Canada surveys show business owners believe the Trump tariffs will only last one year, but Trump is set to repatriate, reindustrialize, and give US businesses all the advantages they could hope for. There might not be any respite.
That leaves Canada with no strong export markets for the natural resource-based economy being crushed by the Liberals. Add on the restrictions and taxes on Canadian resource-based industries and oppression of their provincial governments, and where would optimism arise?
While most Canadians are not obsessively concerned with the situation, as 2025 progresses, the true picture of Canada, the one the media has hidden from us, is rising up for full view. And just as Canada needs its brilliant minds and entrepreneurs, they are packing their suitcases for the sunny south, for an extended trip.
See more on the Canadian economy and what opportunities we might have in the new Tariff era.
