Economic and Social Reports, March 2025

There are four new articles available in today's release of Economic and Social Reports.

More US non-citizens among people migrating from the United States to Canada

Canada has long been a destination for expatriates from the United States due to their proximity and similar socioeconomic lifestyle. Migration flows from the United States to Canada have fluctuated in response to economic, political and social factors. The study "Recent trends in migration flows from the United States to Canada" highlights some major shifts over the past four decades.

In the early 1980s, nearly all US immigrants to Canada were US citizens, with most being born and last residing in the United States. In contrast, in the early 2020s, over three-quarters of US immigrants were either US non-citizen residents or US citizens who were former temporary residents in Canada. These changes likely stem from the large increase of temporary foreign workers in Canada and evolving US immigration policies.

The number of US non-citizen residents moving to Canada quadrupled from 2016 to 2019, before the COVID-19 pandemic restrictions were placed on international travel. Meanwhile, Canadian permanent residents returning from the United States increased by 15% from 2016 to 2021.

Increase in financial support from family to enter the Canadian housing market

Owning a home remains a critical source of wealth creation for many families, with real estate equity representing 42% of overall household wealth in 2023. The article "Familial support in entering the Canadian housing market" found that, from 2019 to 2023, there was an increase in the amount Canadian homeowners received from their families, in the form of an inheritance or down payment gift, to help enter the housing market.

In 2019, 3 in 10 homeowners reported receiving an inheritance at a median value of $67,000, while 2 in 10 renters received a median value of $33,000. During the years of the pandemic, the value of homes appreciated strongly, and inheritances for homeowners increased. By 2023, the median inheritance Canadian homeowners received went up to $85,100.

In 2023, financial support from relatives was more common among young families whose primary owner was younger than 35 years. Although fewer young families had received an inheritance than older families, homeowners aged younger than 35 years were twice as likely to report that at least part of their down payment was a gift (18%). In addition, 6% of homeowners aged younger than 35 years reported living in a home that was acquired in part or in full from a gift.

These differences in access to familial support may further increase inequality in terms of both home ownership and future wealth.

Small businesses response to tax incentives

The study "Responsiveness of small businesses to corporate income taxation in Canada: A summary of new findings" examines how private small businesses in Canada react to small business deduction taxation thresholds. Results indicate that there was large and significant clustering of firms at six small business deduction thresholds from 2001 to 2019.

Furthermore, by examining firms' reactions to changes in the small business deduction threshold, the study establishes that clustering is highly persistent. After an increase in the threshold, many Canadian-controlled private corporations cluster at the new threshold within a year. The analysis suggests that tax planning to avoid crossing the small business deduction threshold, rather than changes in economic behaviour, was responsible.

Understanding how firms react to taxation is important for examining future tax policy in Canada and for assessing how the income tax treatment of small businesses influences firm growth.

Using Statistics Canada data to evaluate government programs

Data collected as part of a government program can be integrated with Statistics Canada data to provide a far more comprehensive program evaluation than program data alone can offer. Statistics Canada researchers can also assist program providers in analyzing the data as part of the program evaluation.

The article "Leveraging Statistics Canada data integration opportunities for program evaluation" discusses the many benefits of combining program data with Statistics Canada data in the conduct of a program evaluation, the steps involved in the data integration process, and the expert analytical services that Statistics Canada researchers can provide.

The article also summarizes a recent example of an evaluation of the Canada Summer Jobs program that benefitted from Statistics Canada data and research services.