Canada’s immigration policy has shifted in recent years to focus more on areas outside of major cities. The concept is straightforward: economic fragility, population decline, and a labor shortage affect many smaller communities. These problems can be resolved by relocating newcomers to smaller cities or rural areas. The long-term objectives of regional immigration are being undermined by the fact that many immigrants are either leaving these areas or never really settling there, despite the promise. The retention problem outside of major cities is discussed below, along with the factors involved and potential solutions.
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1. The retention data: smaller places struggle
Retention is highest in big provinces and metros
- Statistics Canada reports that the five-year provincial retention rates for immigrants arriving in provinces with major cities, like British Columbia, Alberta, and Ontario, were among the highest. For instance, the five-year retention rate for immigrants admitted in 2016 was roughly 93.1% in Ontario, 87.3% in British Columbia, and 84.5% in Alberta.
- The retention rate was significantly lower in provinces with smaller populations or more rural settings, such as Nova Scotia, which had a five-year retention rate of only 62.8% for the 2014 cohort in the Atlantic region.
- According to a different report, the decline was more pronounced in the prairie provinces. For example, in Saskatchewan, the percentage dropped from 72.2% to 57.9% five years after admission between the 2012 and 2016 cohorts.
Rural communities in particular face retention gaps
Additional difficulties are revealed by research on rural or non-Census Metropolitan Area (Non-CMA) communities. According to Haan, Li, and Finlay’s report “Stay a While: the Retention of Immigrants in Rural Canada,” factors like source country, admission category, and intended destination (rural vs. urban) have a big impact on retention in smaller communities.
The structural, professional, and community barriers that are specific to smaller communities—such as remoteness, a lack of specialized services, and professional isolation—make it more difficult for internationally-educated health care professionals to stay in rural Canada, according to another study on the subject.
In summary, the national narrative frequently emphasizes “we’re bringing in immigrants,” but it pays less attention to where they remain. Retention rates are much lower outside of major cities and in smaller communities, which means that newcomers may relocate to larger centers or leave the province entirely.
2. Why smaller communities lose immigrants: Key barriers
Below are the most common and inter-related reasons why immigrants may not stay in rural or non-metro regions.
2.1 Employment, job match and credential recognition
- Skilled immigrants are more likely to relocate to larger cities with more robust labor markets because smaller communities frequently offer fewer job opportunities in the newcomer’s field.
- For instance, internationally-educated health professionals recruited to rural areas may later depart due to limited career progression, professional isolation, or limited access to specialized resources, according to the NB-IRDT study, which noted that employment and educational opportunities are important factors influencing whether newcomers stay or leave.
- The Stay a Although research indicates that admission category matters, many immigrants plan to move to larger communities and settle in smaller ones. Those who arrived with the intention of settling in smaller communities had better retention rates.
2.2 Community, belonging and social networks
- Greater cultural diversity, more services for newcomers, larger diasporas, and social support are all provided by urban centers. Smaller communities might not have these, which could leave people feeling alone or like they don’t belong. Newcomers frequently choose large cities because of the established community and services, according to the consultations on foreign credential recognition.
- A real-life example (based on interview data) is a family of Ukrainian immigrants to Nova Scotia who, after months of working three jobs, felt that the social support system was insufficient and made the decision to leave.
2.3 Housing, amenities, access to services
Although expenses might be lower in smaller towns, facilities (such as childcare, transportation, and cultural events) and specialized medical care might not be as readily available. Beyond merely drawing in newcomers, some rural communities report challenges in promoting integration. Although immigrants are moving to smaller cities and rural towns, retention hasn’t significantly improved because housing, health care, child care, and education are still barriers, according to the Atlantic Economic Council’s “Immigration Tracker.
2.4 Labour market mobility & external pulls
- Some immigrants may view smaller communities as stepping stones to larger urban areas or simply as temporary. Once they gain Canadian experience or language skills, they relocate to bigger centres for career advancement.
- Research shows the decision to leave often happens within the first few years after arrival — making early retention critical.
3. Real‐life scenarios: Immigrant retention in non-metro contexts
To illustrate the lived side of the challenge:
- Case A: An NB-IRDT study in the Moncton region of New Brunswick revealed that immigrants who received job offers upon arrival were more likely to stay in the province: Ten years after landing in 2012, 65.3% of those with job offers were still in New Brunswick, compared to 53.9% of those without. According to the same study, after a year, retention rates in NB’s rural areas (Western Valley, Northwest) were in the low 70% range, while those in the province’s more urban RSCs were around 80%.
- Case B: Internationally-educated health professionals in Northern Ontario: Brown, Kelly, and Esses’s (2022) paper detailed how the Rural and Northern Immigration Pilot (RNIP) was used to recruit IEHPs to rural and northern Ontario. Although there was potential for attraction, issues with spousal employment, professional isolation, and a lack of specialized support made retention difficult.
These instances highlight the need for stronger supports related to work, community, services, and belonging; merely drawing newcomers to smaller communities does not ensure their retention.
4. The consequences of poor retention in rural settings
What occurs if non-metropolitan or rural areas draw immigrants but are unable to keep them?
- Wasted investment: Early out-migration lowers long-term community and economic returns, even though immigration programs (provincial nominee streams, rural pilots) invest in selection, settlement, and integration.
- Demographic and labor gaps still exist: If retention fails, areas hoping to maintain or grow their populations through immigration may still experience labor shortages, aging populations, and economic stagnation.
- Undermined policy objectives: A lot of provinces want to disperse immigration outside of major cities (for labor supply, economic diversification, and regional development). That tactic is weakened by low retention. For instance, provinces like Prince Edward Island, New Brunswick, and Newfoundland & Labrador had significantly lower longer-term retention of provincial nominees, according to Statistics Canada’s article on PNP retention.
- Community integration suffers: When newcomers move out, smaller communities lose the cultural and economic-integration momentum that stable populations bring — e.g., schools, employers, service providers lose the anchor of settled newcomers.
5. What works? Strategies for improving retention outside major cities
Based on both research and real-world examples, these are promising strategies:
5.1 Ensure job match and career pathways
- Place new hires in positions that suit their abilities, support the recognition and licensing of credentials, and offer clear career paths. For instance, when IEHPs had access to professional networks and mentorship, their retention rates for rural health care improved.
- Give job offers top priority when landing: the NB case demonstrated that job offer recipients had higher retention rates over the long run.
5.2 Build community, belonging and networks
In communities that recruit newcomers, promote the development of social networks, cultural organizations, and community-focused programming.
Launch “settlement plus” services designed for smaller communities, such as home visits, mentorship for newcomers, and connections with nearby spouses or employers.
5.3 Strengthen infrastructure and supports
To ensure that newcomers do not feel inferior to their urban counterparts, smaller communities should invest in housing, childcare, transportation, spousal employment support, and cultural amenities.The “Community Immigrant Retention in Rural Ontario” (CIRRO) program in Ontario, for instance, assists rural municipalities in creating retention plans for newcomers.
5.4 Tailor migration-selection and retention planning
Utilize information from the Stay a While study to match newcomers who are more likely to remain in smaller communities (intended destination, region of origin, occupation).
Instead of focusing only on arrivals, align immigration programs (PNPs, rural pilots) with retention metrics. The PNP retention study, for instance, highlights the necessity of monitoring retention for five years and shows variation by province.
5.5 Monitor and adjust based on data
Metrics like newcomer retention after one, three, and five years, reason for leaving, job/occupation match, spousal employment, and housing stability should be monitored in smaller communities.
Utilize the results to modify supports and policies.
5.6 Promote rural lifestyle but manage expectations
• Smaller communities should highlight the advantages (community, affordability) while being honest about the drawbacks (jobs, remoteness) to keep newcomers informed and involved and to avoid unpleasant surprises that could cause them to leave early.
• According to research, immigrants may leave rural areas in search of a sense of community or career advancement rather than a complete lack of employment.
6. Conclusion
It is admirable that Canada wants to settle immigrants in both its smaller towns and its biggest cities. By doing this, rural areas can be revitalized, labor shortages can be filled, national demographic goals can be supported, and economic opportunities can be expanded. Retention is the other half of the equation; settlement is just one half. Smaller communities run the danger of reliving the cycle of attraction followed by out-migration and losing the advantages of immigrant settlement if retention is insufficient. Stakeholders must change their emphasis from “landing” to “settling and staying” in order to succeed, providing targeted assistance in the areas of infrastructure, monitoring, community integration, and employment. Smaller communities must provide compelling incentives for newcomers to stay, establish roots, and make long-term.
Sources
- Haan, M., Li, Y., & Finlay, L. (2024). Stay a While: the Retention of Immigrants in Rural Canada. Canadian Research Data Centre Network.
- Kelly, M. (2023). Saskatchewan Attraction and Retention of Immigrants (SARI). CERC in Migration and Integration, Toronto Metropolitan University.
- Brown, N., Kelly, M., & Esses, V. (2022). “How rural Canada can attract and retain international health-care providers: Address discrimination, provide support.” Western University.
- Statistics Canada. (2024, February 14). Provincial variation in the retention rates of immigrants, by admission category and admission year. The Daily.
- Statistics Canada. (2024, December 19). Immigrants admitted in Ontario, British Columbia, Alberta and Quebec most likely to stay in their provinces of destination. The Daily.
- “The provinces where immigrants are going — and staying.” Global News, 2024.
- Akbar, A. & Sun, C. (2021). Immigrant Retention in New Brunswick. NB Institute for Research, Data & Training.
- Ontario Government. (2025). Community Immigrant Retention in Rural Ontario (CIRRO) program.
- OECD. (2024). Enhancing rural innovation in Canada.
