London Leads the Way: New Data Shows City's Success in Retaining Newcomers

Source: Statistics Canada. Table 43-10-0022-01 Mobility of immigrant taxfilers by census metropolitan areas and tax year. DOI: https://doi.org/10.25318/4310002201-eng

The London area is doing a remarkable job at retaining immigrants in their communities, new data analyzed by the LMLIP’s Fact Sharing work group show.

According to figures released by Statistics Canada, about 73 per cent of immigrants who arrived in 2019 in the London metropolitan area – an area that also includes Strathroy, St. Thomas and portions of Middlesex and Elgin counties – were still living here in 2021.

London’s retention rate was higher than other similarly-sized communities in Ontario, including Windsor (72.6 per cent), Kitchener-Waterloo-Cambridge (71.7 per cent), Hamilton (68.3 per cent) and Guelph (60.7 per cent). Toronto, however, had a higher retention rate at 78.7 per cent.

While London’s retention rate may seem similar to those of other cities in the province, London also experienced the smallest drop in its retention rate when looking at the percentage of immigrants who arrived in 2015 but were still living in the same city in 2017.

For instance, London’s retention rate in 2017 was 73.3 per cent. It went down to 73 per cent.

By contrast, Toronto’s retention rate in 2017 was 84.9 per cent compared to 2021’s 78.7 per cent. Windsor also experienced a big drop in this figure, going to 72.6 per cent from 79.5 per cent while Hamilton dropped from 71.7 per cent to the current 68.3 per cent.

Several factors may be influencing immigrants’ desire to stay in London, including a more affordable cost of living when compared to communities closer to the Greater Toronto Area and an economy that is expected to add thousands of jobs in the coming years.

"When considering newcomer retention, we know newcomers are more likely to stay where there are current and future employment opportunities," said Christine Wilton, director of workforce development with the London Economic Development Corporation.

"We are fortunate to have a diverse and balanced economy in London, with employment opportunities across a variety of sectors, providing newcomers with the opportunity to find a career here in London that matches their skills."

Wilton noted that attracting and retaining immigrants in London will be critical for the region's economic future, adding the number of people born in Canada and active in the London CMA workforce already declined from 2016 to 2021 as more people exited the workforce than joined. By contrast, the number of immigrants and non-permanent residents in the workforce increased by nearly 20,000, a 39 per cent growth rate, allowing the region's overall workforce to grow by seven per cent over the same period.

"We recently partnered with the Smart Prosperity Institute and Fanshawe College to produce employment prospect reports in the key sectors of manufacturing, health, technology and construction. The London economic region is projected to need over 40,000 workers over the next eight years to replace retiring workers and to keep pace with projected levels of employment growth, just in these key sectors," she said.

"Our domestic supply of talent will be insufficient to fill these job openings, meaning more immigrant talent will be needed."

London’s positive trends mirror that of the province as a whole, which ranked first in Canada with a retention rate of 93.1 per cent for immigrants who arrived in Canada in 2016, according to a news report by Global News.

The London area’s three-year retention rate also varied slightly when looking at the admission category of immigrants.

For instance, refugees were more likely to stay in London after arriving, with a retention rate in 2021 for those who arrived in 2019 of 84 per cent.

Immigrants sponsored by family members also stayed in the region at high rates, with the area’s retention rate for the same period sitting at 78.7 per cent.

The smaller retention rate came for economic immigrants at 57.6 per cent.

The reasons why the retention rates vary between immigration cohorts in London are similar to what is seen across provinces.

“If someone is moving to Canada to be with their children, grandchildren or spouse, they are more likely to stay in that same province. But economic migrants look for job opportunities, cultural communities and good education opportunities for their children,” Manan Gupta, an immigration consultant based in Brampton, Ont., said in Global’s news report.

“Despite the high cost of living and high property prices, provinces like Ontario and B.C. have been able to provide good jobs and settlement services to newcomers.”

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