Western Union

Nearly 2 in 5 migrants living in Canada state that without being able to send money back home their family would be in poverty

DENVER, July 11, 2023 /PRNewswire/ -- New research released today by Western Union has revealed that nearly 2 in 5 (35%) migrants living in Canada believe their friends or family would be in poverty if it wasn't for them sending regular payments back home.

The report – The Value of Remittance – looks to shed a light on the real-world impact of remittance payments, finding that 40% of migrants believe that without being able to send money, their family or friends would not be able to afford medical treatment and 32% state that members of their family would not be able to attend school or further education. Forty-six percent went on to say that without their support, their family or friends back home would not be able to afford good quality food.

The study, which surveyed migrants living in Canada, demonstrates the positive affect that remittance payments have on families around the world. The report found that 61% of migrants believe that their families' quality of life has improved vastly due to the money that they send and 60% believe that their family and friends have more opportunities in life as a result of their remittance payments.

How is remittance being used by families of migrants living in Canada?

On average migrants were found to send 9% of their annual income as remittance. With the primary reasons being to support their families with the cost of groceries (61% of respondents), healthcare (54%) and accommodation (33%). Ninety percent of migrants were found to have sent money to family back home in the past 12 months and 43% of migrants state that being able to send money to family back home was a key factor in their decision to move to Canada.

The most common uses of remittance amongst families of migrants:

1. Groceries (61%)
2. Healthcare (54%)
3. Accommodation (33%)
4. Paying off family debt (26%)
5. Education (25%)
6. Transport costs (15%)
7. Paying towards family childcare (12%)
8. Supporting a family members business (11%)
9. Paying towards family wedding costs (11%)

The pressure of providing back home

The study found that amongst rising inflation, many migrants are struggling with the pressure of providing for their families and friends back home. Over half (57%) of migrant's state that due to the rising cost of living, they have had to work extra hours or have started another job to continue sending remittance payments and 47% say that they have had to reduce the amount of remittance that they send due to rising living costs. Over a third (34%) reported that they were concerned about the possibility of losing their job in the next 12 months and the impact this will have on their families back home.