For Relocators
Understanding Relocation Costs: A Comprehensive Guide
November 28, 2024
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A warm welcome to the June issue of PerchPeek’s Canada Market Monthly update!
Here’s where you’ll find the hottest updates around employee relocation and international talent strategy, insights from our experts on housing and cost-of-living news affecting your staff, the latest trends in global mobility, and tips and tricks on ways to support your teams.
A fly-by summary
● Increasing demand for top tech talent is pushing up salaries and compelling more and more Canadian employers to seek candidates from abroad, according to a new report
● Latest rental cost data: national average rent is up by +20% ($340 per month) vs. the pandemic-low of April 2021, and nearly a third of landlords are considering selling up
● GST tax credit and grocery rebate to be paid out in July, plus climate offset payments in certain provinces; a summary of the key details to share with eligible employees
● Canada and South Korea Youth Mobility visa schemes are to be expanded, opening up more opportunities for young people to live and work on the other side of the world
A new report from HR giant Randstad shows more and more employers in Canada are turning to recruiting from abroad to fill tech jobs, due to struggles finding qualified local candidates. Here’s the latest scoop for HR and Talent Acquisition Leaders!
Randstad notes a shift in average salary expectations for jobs in tech, as digital dependency continues to increase and new technologies drive change across all industries.
In other words, the increasing demand for top tech talent means IT professionals can afford to be more choosy about their roles, and are in a stronger position to negotiate for a larger compensation package. The report notes the following tech salary trends:
● In 2022, average tech salaries in Canada ranged from $51,900 to $154,300
● In 2023, this range has shifted to $74,000 - $130,600, with a median of $100,100
According to the Best IT & Tech Jobs in Canada for 2023 report, the tech roles in greatest demand in Canada right now include Developers/Programmers, Data Analysts/Scientists, Cloud Architects, Quality Assurance Analysts and IT Project Managers.
This increasing demand for tech talent from overseas is creating more opportunities for foreign nationals seeking to immigrate through the Express Entry system. Indeed, IT professionals are among the most-sought after by employers looking to recruit foreign nationals.
PerchPeek insights
It’s undoubtedly a workers’ market in Canada right now, especially in the tech industry. The unemployment rate remains around as low as it’s ever been - holding steady at 5% as of April, according to Statistics Canada - and tech professionals can afford to shop around for roles.
It’s refreshing to see that the competitive nature of the tech industry and the constant need for innovation are pushing companies to explore international talent pools. It’s not just about increasing headcount; the diverse perspectives and experiences brought by foreign tech workers can fuel creativity, collaboration, and productivity within these organisations.
By embracing international talent, companies can tap into a diverse pool of skills and experiences, driving innovation and propelling Canada's tech sector forward.
As a People Leader supporting relocating employees, it’s important to be up-to-date on current rental prices and trends. That way, you can adjust relocation packages accordingly and manage expectations well from the outset. Here are the latest figures on the Canadian rental market!
Canadian rental market update
Key trends at a glance (source: PerchPeek and Rentals.ca):
● The average asking rent for all available properties Canada-wide is $2,002
● No real change month-on-month ($2,004) but a rise of +9.6% YoY ($1,827)
● Rents in Canada have increased by +20% (an average of $340 per month) versus the pandemic-low in April 2021 ($1,662)
Breakdown by apartment type:
For province- or city-specific rental cost data, give PerchPeek a shout here!
In the news
● Toronto’s real estate board predicts that more renters may opt for property purchase in light of soaring rental costs; rent for a one-bed condo has risen by +15% YoY to $2,474.
● Conversely, a recent study showed that nearly a third (31%) of landlords are considering selling up, as a result of rising interest rates pushing up mortgage payments.
● Competitive rental market conditions have led to a surge in scams, says the Canadian Anti-Fraud Centre, who counted 610 cases of one particular rental scam in 2022.
PerchPeek insights
In light of interest rate rises and the effect on mortgage costs, it seems unlikely that the Toronto board’s prediction - that more renters will opt to purchase - will come to pass. Indeed, if more landlords sell up, this will put more pressure on the rental market by further reducing supply.
To support relocating employees, it’s essential to arm them with the right tools and guidance to help stand out from the crowd in super competitive markets. It’s also crucial to warn them to be vigilant against scams, as sadly scammers like to prey on innocent newcomers!
Here’s PerchPeek’s roundup of the latest cost of living updates affecting relocating employees, for HR Leaders to share with staff and take into account when reviewing relocation packages.
The Canadian government released its 2023 federal budget in the spring, as we reported in our April issue, focusing on spending measures to make life more affordable, plus extra investment in green energy, improving health care services and rolling out a federal dental care programme.
Now summer has arrived, it brings with it not just warmer temperatures (finally!) but also the implementation of the budget initiatives designed to help those living in Canada tackle the rising cost of living. Here’s a summary of the key updates:
GST (Goods & Services Tax) Credit
● Tax-free quarterly payment to help households offset the taxes that they pay
● Canadian individuals and families with low to modest incomes are eligible
● Up to $467 for single people; up to $612 for those who are married/in a partnership
● Payment due: 5th July
Grocery Rebate
● One-time rebate to help Canadian residents deal with soaring grocery prices
● Canadian individuals and families with low to modest incomes are eligible
● Up to $234 for individuals; up to $467 for families with two children
● Payment due: 5th July
CAIP (Climate Action Incentive Payment)
● Tax-free quarterly payment to help households offset the cost of federal pollution pricing
● All residents of Alberta, Saskatchewan, Manitoba and Ontario are eligible
● Payment amounts vary by province
● Payment due: 14th July
PerchPeek’s advice for People teams
● Share details of the GST tax credit scheme with eligible employees and provide assistance where needed in making sure they’re enrolled for all relevant benefits
● Offer help to newcomers where needed in filing income tax returns (as a number of these benefits are automatically applied through the tax return process)
Young people from Canada and South Korea will soon be able to benefit from expanded visa schemes, allowing more of them to travel and work on the other side of the world for longer! It’s a great opportunity for HR Leaders looking to bolster talent acquisition efforts and attract new potential candidates. Here’s all the key details of the scheme that you’ll need to know!
As the two countries mark 60 years of diplomatic relations, ties are being further strengthened through the signing of a new Youth Mobility Arrangement. Young South Koreans will have more options when applying for international work and travel opportunities through International Experience Canada (IEC), with an equivalent scheme for Canadian nationals in South Korea.
What’s changing?
In 2024, the following changes will be implemented for South Korean IEC applicants:
● The age limit will rise from 30 to 35 years old
● Two new streams - International Co-op) Internship and Young Professionals - will be added to complement the existing Working Holiday category
● Most young people will be able to participate in the programme twice, rather than just once - each time for up to two years
In the words of the Honourable Sean Fraser, Minister of Immigration, Refugees & Citizenship:
“International experience and perspectives are particularly important in today’s global economy.
Thanks to this new youth mobility arrangement, Canadian and South Korean youth will have more opportunities to live, travel and work abroad for longer than ever before, and Canadian employers will have a bigger talent pool to find the workers they need.”
How can companies benefit?
These Youth Mobility Arrangement changes pose a great opportunity for Canada-based People teams to address skills shortages and fill roles by targeting South Korea’s brightest young talent!
The extension to the age limit and the ability to participate twice in the programme will help expand the available talent pool of young people keen to enter the Canadian workforce on the Working Holiday Scheme. Plus, the addition of the two new streams should make the immigration process quicker and more efficient, helping speed up talent acquisition efforts.
The first step to attracting talent from South Korea is to post on online job boards. PerchPeek recommends Job Korea, Saramin and Incruit, as well as LinkedIn. Bear in mind that these local sites can be tricky for non-Korean speakers, so do make use of online translation tools!
For more information on the visa application process for potential candidates and to kick it off, head to the International Experience Canada website here.
Facts and figures
● Canada has signed youth mobility arrangements with 36 countries and territories
● Canada is extending the IEC opportunities to nearly 90,000 young people from partner countries and territories in 2023
● There are over 218,000 Canadians of Korean descent, according to the 2021 Census
We hope you enjoyed this month’s update!
If you have any feedback, comments or questions about what's happening in your location, feel free to reach out via the form at the bottom of this page.
Thanks for reading, and see you next month!
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We hope you found this update insightful! We’d love to hear your thoughts.
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