Canada is well-regarded by newcomers for its high standard of living, progressive culture, and opportunities. However, newcomers might seek concrete data to validate these impressions and to see how Canada measures up against other leading immigrant destinations globally.
The United Nations Human Development Index (HDI) provides valuable insights in this regard. The HDI evaluates various factors to produce a single, comprehensive score that reflects the level of development in each country.
What is the Human Development Index?
The Human Development Index (HDI) is a composite measure developed by the United Nations (UN) to evaluate a country's development. It emphasizes that assessing a nation's development should focus on the capabilities and well-being of its people, rather than just economic growth.
The HDI evaluates three key dimensions:
- Longevity: This includes life expectancy at birth and the overall score on the UN’s life expectancy index.
- Education: This encompasses expected years of schooling, mean years of schooling, and the overall score on the UN’s education index.
- Income/Standard of Living: This is measured by Gross National Income (GNI) per capita and the overall score on the UN’s Gross National Income index.
Countries are assigned an HDI score between 0 and 1, with 1 representing the highest level of development and 0 the lowest. The HDI has been used to assess countries since 1990.
The HDI scores are categorized as follows:
- ≤0.550: Low development
- 0.550–0.699: Medium development
- 0.700–0.799: High development
- ≥0.800: Very high development
How Does Canada Rank on the HDI?
As of the latest data from 2022, Canada has an HDI score of 0.935, reflecting a very high level of development. This is an increase from Canada's HDI score of 0.861 in 1990, marking an improvement of 0.074 points over the past three decades.
Breakdown of Canada's HDI Score
The following table outlines Canada's HDI components for 2022, the most recent year for which data is available:
Composite Measure | Canadian Statistics |
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 | $48,444.30 (adjusted to 2017 Purchasing Power Parity dollars) |
In comparison, the global average HDI score is 0.739, indicating that Canada significantly exceeds this average in terms of development.
The highest-ranked country according to the most recent HDI report is Switzerland, with a score of 0.967, while the lowest-ranked is Somalia, with a score of 0.380.
How Does Canada Compare to Other Top Immigrant Destinations?
According to the OECD’s 2023 International Migration Outlook, the top five destinations for permanent immigration (excluding Canada) based on 2022 data are:
The United States
Germany
The United Kingdom
Spain
France
Below, we will provide the HDI scores and composite measures for these countries.
Note: While the HDI offers a broad measure of human development, it does not account for all factors such as cost of living, access to healthcare, legal rights, and freedoms.
The United States
As of the most recent data, the United States has an HDI score of 0.927, with the following composite measures.
Composite Measures for Top Immigrant Destinations
The United States
Composite Measure | American Statistics |
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 | $65,564.90 (adjusted to 2017 Purchasing Power Parity dollars) |
Germany
Composite Measure | German Statistics |
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 | $55,340.10 (adjusted to 2017 Purchasing Power Parity dollars) |
The United Kingdom
Composite Measure | UK Statistics |
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 | $46,623.90 (adjusted to 2017 Purchasing Power Parity dollars) |
Spain
Composite Measure | Spanish Statistics |
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 | $40,043.30 (adjusted to 2017 Purchasing Power Parity dollars) |
France
According to the most recent data, France has achieved an HDI score of 0.91, with the following composite measures:
Composite Measure | French Statistics |
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 | $47,378.70 (adjusted to 2017 Purchasing Power Parity dollars) |
What Determines Success for Newcomers in Canada?
Data from Statistics Canada indicates that many recent immigrants can achieve economic outcomes that are comparable to, or even exceed, those of Canadian-born individuals.
A report titled "Which Immigration Selection Factors Best Predict the Earnings of Economic Principal Applicants?" examined the impact of various factors assessed by the Comprehensive Ranking System (CRS) on immigrant success. This analysis looked at short-term (1-2 years), medium-term (5+ years), and long-term (10+ years) earnings.
The CRS is utilized by Canada’s federal immigration system to rank economic immigrants based on human capital factors such as age, education, and language proficiency. Candidates are scored based on these factors to gauge their potential for successful settlement and integration in Canada.
The specific CRS factors analyzed include:
Years of pre-landing Canadian work experience (compared to those with no experience)
Proficiency in official languages (English or French; native speakers vs. less proficient)
Age (younger individuals, 25-29 years vs. older individuals, 50-54 years)
Education level (bachelor's degree vs. secondary school education)
In the short term (1-2 years), pre-landing Canadian work experience is the most significant factor influencing immigrant earnings in Canada. Each additional year of such experience corresponds to an 84% increase in earnings. Language ability also plays a critical role; immigrants whose first language is neither French nor English but who speak English earn 29% less than those whose first language is French or English. Education is another key factor, with individuals holding a bachelor's degree earning 12-24% more than those with only a secondary school education.
Medium-Term and Long-Term Earnings Factors for Newcomers in Canada
Medium Term (5+ years): Pre-landing Canadian work experience remains the most significant predictor of earnings, with each year of such experience contributing to a 52-59% increase in income. Language proficiency continues to play a crucial role, with those whose mother tongue is an official language earning 42% more. Age becomes more influential, as older immigrants earn 27-35% less compared to their younger counterparts. Education also positively affects earnings, with bachelor’s degree holders earning 14-21% more than those with only secondary education.
Long Term (10+ years): Pre-landing Canadian work experience still impacts earnings but to a lesser degree, with each additional year resulting in a 45% increase in income. Age at landing becomes a critical factor, with younger immigrants earning 44% more than older ones. Language proficiency in an official language remains significant, with less proficient speakers earning 35% less. Education has an even greater effect in the long term, with a bachelor’s degree leading to a 23% increase in earnings.
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