A recession is when the economy of any business or country is falling in terms of industry, agriculture, trade, income, stock markets, employment, etc. Undoubtedly, it is a temporary period, yet it badly affects the overall gross domestic product (GDP). When a recession occurs, it drops and creates inflation in the prices of items. This results in unemployment and less consumer spending due to high prices.
Many countries are facing a recession in 2023, and Canada is one of them. It mainly impacts international students as they come here for new opportunities but face inflation. From rent to food, from job to study, they are facing difficulties. However, a person can overcome all these difficulties with some struggle and courage.
Things that Cause Recession
Many reasons can cause a recession in any country. These are mentioned below:
- Unpredictable economic occurrences: Many events are unexpected and surprise everybody. These splendidly affect the economy, just like the pandemic of Covid-19. Covid impacts the economy of every country, and there is an unexpected downfall in GDP.
- Debt bubbles: When there is a hike in interest rates due to worn-out consumers and businesses, debt becomes difficult to be paid. Resultingly, the economy suffers due to that. The best example is the housing crisis in the United States in 2008.
- Asset bubbles: Asset bubbles are when the market becomes greedy and emotional, and unsustainability occurs. This results in a harmful Gross domestic product.
- Technology advancement: This is a technical era with changes in technology day by day. These change the life of a person and have serious consequences. When you try to turn towards adapting to these circumstances, it negatively impacts the economy.
- Inflation: Inflation means hiking the prices to cope with a happy economy every time. Raising the interest rates leads to unemployment and results in recession.
Who got impacted by Canada’s Recession?
The ones impacted by the recession in Canada are large or small businesses. It includes real estate, warehouses, retail, energy, etc. Resultingly, there are fewer full-time and part-time jobs. Indirectly, it hits hard for international students as they need these jobs urgently to be financially stable in Canada.
Impacts of Canada’s Recession on International Students
Here are the main ways how the Canadian recession in 2023 impacted the life of international students in Canada and the economic growth of the country:
- Less enrollment of international students: International students are terrified to come to Canada. The reason is fewer jobs, which makes them financially unstable in Canada. For example, if you are enrolled in a two-year graduate course at any university, your tuition fees for one semester would be nearly 10000 CAD. If you do not have any jobs here, even with the minimum wage, how will you pay it in the future? It already costs you 22 to 25 lakhs INR to come here. That is why they are not trying to get any enrollment here.
- Have to face Financial challenges: Just in case international students get themselves enrolled in any Canadian college, the subsequent fear of them is the financial challenges they must face here in terms of collecting their tuition fees for the future. Due to recession and inflation, there may be a hike in their tuition fees, making their fear real. Inflation will cause a rise in living expenses. They can go for some scholarships and funding, but it also has limited seats and chances.
- A decline in Mental Health: The recession also impacts international students psychologically. Fewer jobs and no way of earning cause stress and anxiety in their life. It results in declining mental health. No doubt, the Canadian government offers many benefits for the students, but the homesickness and fear of missing out cannot be replaced.
- Effect on the Post-graduation plans: Some international students came here to complete graduation. These students are not able to find proper employment after graduation. That is why they need to enroll in post-graduation, which is more demanding in terms of paying tuition fees. Because of reduced jobs during the recession, they cannot get a job in their field. So, they fear enrolling in any post-graduation and staying attached to the general labor or returning to their home countries.
- Government policies to reduce the recession impact: Canadian government is a monarchy government. They decide everything under the authority of the Canadian people. That is why they are always ready to help international students also. They help them by setting a minimum wage so they are not being exploited. Some rules and regulations forbade owners from doing any illegality with the students.
I will share my experience here. I am also an international student in Canada. I came here for my studies as a mayintaker. This recession also affected me due to my part-time availability for work. It is hard to manage all the expenses independently without a job in my hand. Although you bring some cash, and the government provides you with GIC, you must pay the fees for the upcoming years, which is very hard to gather. Due to inflation, you have to manage your grocery, travel, and high rental expense. You can barely save the tuition fees after all these expenses. But struggling a lot now can make you bold and vigorous for the future, and you will shine after being polished with all these hardships.
Frequently Asked Questions:
1. When was the last recession in Canada?
The last recession in Canada was in 2020 during the pandemic.
2. How bad will the recession be in 2023 Canada?
Various reports show the probability of the Canadian recession in 2023 will be at 60 percent.
3. How long will a recession last?
A recession may last a few weeks to several years. It depends on the cause of the recession and government actions.
4. What to expect in a recession in Canada?
During a recession, there is a significant rise in unemployment. So the main thing to expect in a recession in Canada is getting laid off and unemployment.
Indeed, living abroad will be difficult for the initial days because we are not that independent in our home countries. But, when you see the results of being a new person and face tremendous changes in yourself, you will also appreciate yourself for taking this step. Yes, you must manage everything by yourself, especially the time, but once you get away from this struggle, a bright future awaits you.