New ICC report sheds light on why fewer newcomers are choosing to become Canadian citizens
Why It Matters
Canada needs immigrants for economic and population growth as the country’s population ages and birth rates decline. However, fewer immigrants choose to call Canada home, which can spell trouble in the future.

There was a 40 per cent drop in permanent residents who pursued Canadian citizenship between 2001 and 2021, and a new study says archaic systems and isolation are significant factors.
The Institute for Canadian Citizenship’s “In Between Belonging: Immigrant Perspectives on Becoming a Canadian Citizen” report asked more than 4,000 permanent residents and new Canadian citizens about their path to citizenship.
Of permanent residents, more than 20 per cent said they were unsure or unlikely to seek citizenship. Among the reasons behind newcomers’ hesitation are feelings of social and economic isolation and old-fashioned settlement services that don’t meet the needs of the contemporary immigrant.
“For a long time, everyone assumed that everyone wanted to become Canadian. We have to get over ourselves. The downward trend is a sign that Canada is not doing enough,” said Daniel Bernhard, CEO of the Institute for Canadian Citizenship, a non-profit that advocates for immigrants and permanent residents.
Bernhard said the study is part of an ongoing effort to determine what drives this downward trend by examining qualitative measures. This report follows a similar one from last year that analyzed immigration data.
Antiquated settlement services and isolation are significant factors in hesitation
Through in-depth interviews with people from various economic, racial, and social backgrounds, the study found some common factors contributing to hesitation in pursuing Canadian citizenship.
Many interviewees said they felt unwanted, underemployed, and were left on their own to navigate social systems in Canada.
“It seems as if, for the lack of a better word, you’re importing important people into the country, but you don’t know what happens [to them] afterwards,” said one skilled worker from Iran.
Ninety-seven per cent of survey respondents in the study who said they were unsure if they would apply for Canadian citizenship had post-secondary education, whether it was a diploma, degree or graduate degree.
Economic categories are responsible for the most significant proportion of immigrants to Canada. In 2023, 58 per cent of permanent residents were admitted under economic immigration categories. Just 18 per cent of economic immigrants stay to become citizens, down from 32 per cent.
“We’re dealing with some longstanding credentialing issues. Immigrant talent is often underutilized and underpriced,” Bernhard said.
He explained that Canada needs to stop treating immigrants like they did 50 years ago.
“We need to look at the contemporary immigrants and what they need. They have already proven they can speak English or French, and they have shown they have advanced education and professional skills, so why are you offering them language services? Why are you offering them help to write a CV?” Bernhard said.
“Our settlement services are treating people like they are coming here with $5 in their pocket,” he added.
While some refugees and asylum seekers need settlement services like language skills, employment, and resume writing skills, Bernhard said there aren’t other types of settlement services that cater to contemporary economic immigrants.
“We have become competitive and selective (in immigration), and people feel insulted by the services that exist for them,” Bernhard said.
Settlement services in Canada are created and funded by the federal government through Immigration, Refugees, and Citizenship Canada and delivered by the non-profit sector.
Some interviewees also cited the challenge of renouncing their other citizenship. Canada allows dual citizenship, but some countries, like India and China, do not.
“Many expressed the importance of maintaining family ties in their countries or origin. Despite having the option of applying for a visa or other status as Canadian citizens, they feared the consequences of renouncing their original citizenship,” the report said.
How can Canada build a sense of belonging and make people want to stay?
Canada’s future depends on immigration, the only source of population and labour force growth as the country’s population ages and birth rates decline.
“Immigrants are not here to just consume and take up our charity and benevolence. They are the answer to many of our problems,” Bernhard said.
Bernhard said Canada needs to overhaul settlement and integration services to make people want to stay and become Canadian.
He explained that settlement services must shift from a “poverty mindset” to one that matches contemporary immigrants’ needs, such as better employment integration and credentialing services.
He also pointed to “disruptive” new services like the Institute of Canadian Citizenship’s Canoo Access Pass as a way to foster inclusion and belonging.
More than 500,000 people have used the Canoo Access Pass, an app that gives new permanent residents and citizens access to about 2,000 cultural institutions across Canada, from zoos to museums and art galleries.
“Citizenship is, in a sense, a proxy to belonging. This is a way we’re building belonging,” Bernhard said.