Canada is known among newcomers for its high standard of living, progressive culture, and ample opportunities. However, many may seek concrete data to validate these perceptions and to understand how Canada compares to other leading immigrant destinations globally.
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The United Nations Human Development Index (HDI) serves as a valuable tool for this purpose. The HDI evaluates various factors to provide a single composite score that reflects the level of development for each country.
The Human Development Index (HDI) is a composite measure developed by the United Nations (UN) to assess a country’s overall development. Unlike measures that focus solely on economic growth, the HDI emphasizes the capabilities of individuals as the true indicators of development.
The HDI evaluates three key dimensions:
- Longevity: Assessed through life expectancy at birth and the UN’s life expectancy index.
- Education: Gauged by expected years of schooling, mean years of schooling, and the UN’s education index.
- Income/Standard of Living: Measured by Gross National Income per capita and the UN’s Gross National Income index.
Countries receive a score between 0 and 1, with 1 representing the highest level of development and 0 the lowest. The HDI has been used to assign development scores to countries since 1990.
According to the HDI, the scores correspond to the following levels of national development:
- ≤0.550: Low
- 0.550-0.699: Medium
- 0.700-0.799: High
- ≥0.800: Very High
How does Canada rank on the HDI?
As of the most recent data available (2022), Canada achieves a score of 0.935 on the HDI, indicating a very high degree of development. In 1990, Canada’s HDI score was 0.861, revealing an increase of 0.074 points on the HDI in the 30+ years since data was first reported.
The table below provides the breakdown of Canada’s HDI score by composite measures, based on the most recent data from 2022:
- Life expectancy at birth: 82.8 years
- Expected years of schooling: 15.9 years
- Mean years of schooling: 13.8 years
- Gross National Income per Capita: $48,444.3 (adjusted to 2017 Purchasing Power Parity dollars)
In comparison, the global average HDI score is 0.739, highlighting Canada’s strong performance as a developed nation. The highest-ranked country according to the latest HDI report is Switzerland, with a score of 0.967, while Somalia is at the bottom with a score of 0.380.
How does Canada fare against other leading immigrant destinations? According to the OECD’s 2023 international migration outlook, the top five countries for permanent immigration in 2022 (excluding Canada) were:
- The United States
- Germany
- The United Kingdom
- Spain
- France
The following section will outline the HDI and composite scores for these countries.
Note: While the HDI provides a broad measure of human development, it does not account for factors such as cost of living, access to medical services, and legal rights and freedoms.
For the United States, the most recent HDI score is 0.927, with the following composite measures.
Here are the HDI composite measures for the United States:
- Life expectancy at birth: 78.2 years
- Expected years of schooling: 16.4 years
- Mean years of schooling: 13.5 years
- Gross National Income per Capita: $65,564.9 (adjusted to 2017 Purchasing Power Parity dollars)
Germany
As of the most recent data, Germany has an HDI score of 0.950, with the following composite measures:
- Life expectancy at birth: 80.9 years
- Expected years of schooling: 17.3 years
- Mean years of schooling: 14.2 years
- Gross National Income per Capita: $55,340.1 (adjusted to 2017 Purchasing Power Parity dollars)
The United Kingdom
The latest HDI score for the United Kingdom is 0.940, with these composite measures:
- Life expectancy at birth: 82.1 years
- Expected years of schooling: 17.6 years
- Mean years of schooling: 13.4 years
- Gross National Income per Capita: $46,623.9 (adjusted to 2017 Purchasing Power Parity dollars)
Spain
According to the most recent data, Spain has an HDI score of 0.911, with the following composite measures:
- Life expectancy at birth: 83.9 years
- Expected years of schooling: 17.8 years
- Mean years of schooling: 10.6 years
- Gross National Income per Capita: $40,043.3 (adjusted to 2017 Purchasing Power Parity dollars)
France
As of the most recent data, France has an HDI score of 0.91, with the following composite measures:
- Life expectancy at birth: 83.2 years
- Expected years of schooling: 15.9 years
- Mean years of schooling: 11.6 years
- Gross National Income per Capita: $47,378.7 (adjusted to 2017 Purchasing Power Parity dollars)
What Determines Success for Newcomers in Canada?
Statistics Canada indicates that many recent immigrants achieve economic outcomes comparable to, or even better than, their Canadian-born counterparts.
A report titled “Which Immigration Selection Factors Best Predict the Earnings of Economic Principal Applicants?” examined factors from the Comprehensive Ranking System (CRS) to determine their impact on immigrant success over short (1-2 years), medium (5+ years), and long-term (10+ years) periods.
The CRS ranks economic immigrants based on human capital factors such as age, education, and language ability, assigning scores that predict their likelihood of successful settlement and integration in Canada.
The report specifically analyzed:
- Years of pre-landing Canadian work experience: Immigrants with prior Canadian work experience saw an 84% increase in earnings for each year of experience.
- Language ability: Immigrants whose mother tongue is neither French nor English, but who speak English, earned 29% less than those with a native French or English background.
- Age: Younger immigrants (ages 25-29) generally earned more than older immigrants (ages 50-54).
- Education: Those with a bachelor’s degree earned 12-24% more compared to those with only a secondary school education.
In the short term (1-2 years), pre-landing Canadian work experience is the most significant factor influencing earnings, followed by language ability and education.
Medium Term (5+ Years)
In the medium term, pre-landing Canadian work experience remains the strongest predictor of earnings, with each year of experience resulting in a 52-59% increase. Language ability also plays a significant role, with those whose mother tongue is an official language earning 42% more. Age becomes more relevant, as older immigrants earn 27-35% less than their younger counterparts. Education continues to positively influence earnings, with bachelor’s degree holders earning 14-21% more.
Long Term (10+ Years)
In the long term, pre-landing Canadian work experience still impacts earnings, though less significantly, with each year contributing to a 45% increase. Age at landing becomes crucial, with younger immigrants earning 44% more than older ones. Language proficiency in an official language remains important, with less proficient speakers earning 35% less. Education has a stronger effect over time, with a bachelor’s degree leading to a 23% increase in earnings.
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