Working in Canada Vs USA: Which is better? (4 Factors)

So, you have committed to start or continue your career in one of the two countries; The USA or Canada. But the only problem is that you are not sure in which country it is better to work.

Well, apparently there is no significant difference and many people might say at a point that both countries are the same for work.

However, if we tell you that there are four critical factors that you should consider while thinking of working in the USA or Canada, what will be your reaction? Surely, you will be curious to know which factors are these.

So, here is a guide on working in Canada vs USA: which is better?

This guide will walk you through all the important points to compare both countries. Such as the working hours, where you can easily get the work permit, The USA or Canada? Taxation, and the cost of living in both countries. 

1. Working Hours and Employment Warranty

The most important factor to consider while choosing a career is to know how many hours you will have to work and what level of your job security is. So, in order for us to better understand job security in both countries, let’s take a look at what was the unemployment rate in both countries in the year 2021.

Why?

Because in 2020, there was a pandemic due to the outbreak of COVID-19. So. let’s take a look at the unemployment status of both countries in the year 2021 which is post-COVID recovery. This will help us identify the strength of each country to fight an epidemic like COVID-19.

Canada

• Canada has fought against unemployment due to COVID-19 very well, thanks to Prime Minister Justin Trudeau for the job security of Canadian citizens and foreigners as well. The unemployment rate in Canada in 2021 was 7.51% which was a 1.95% decline from the previous year.
• The average working hours in Canada are 8 hours a day. Which sums up to 40 hours per week.

The USA

• The USA has also been very resilient after the outbreak of COVID-19. As we can see the unemployment rate in the USA was only 5.3 in the year 2021.
• According to the Bureau of Labor and Statistics, the average working hours recorded were 38.6 per week. Whereas men worked around 40.5 hours and women worked approximately 36.6 hours as of the year 2021 in the USA.

2. Immigration and Work Permit

If we talk about immigration pathways and work permit issuance, both countries provide numerous types of options for a work visa. However, Canada is currently providing over 80 immigration options out of which, many are specially created for highly qualified foreigners to enter the country easily.

Below, you will find some of the many immigration pathways the countries are providing.

The USA Immigration Programs

F1, J1, M1 Student Visa: These are for students to pursue higher studies.

E1, E2 Visa: Immigration visa for workers.

IR1 and CR1 visa: Your spouse can use these for migrating to the USA if you are a US citizen.

Canada Immigration Pathways

Permanent Residence Visa

Express Entry Visa

Visa for Skilled Workers

Provincial Nominee Programs

Sponsorship for the Family

Note: There are much more than these programs for immigration to these countries. Because this guide is about the working comparison of both countries, hence, we have only mentioned the relevant programs.

Read Also: 7 Best In-Demand Jobs in Canada

3. Taxation

Here is a quick comparison of the USA and Canada in the terms of taxation. 

Taxation in The USA

• In the USA, the tax is paid in two portions. These are the federal and the state tax. According to Statista, the average income tax in 2019 was 13.29%, in which both the federal and the state tax is included. Employees in Washington are exempted from the state tax.
• Sales tax is applied on the purchases that are performed throughout the USA.

Taxation in Canada

• The employees in Canada are required to pay a federal tax of approximately 15% of their income if their salary is less than $47,000. The people earning more than that will be required to pay a larger amount in tax.
• The sales tax is comparatively low in Canada. You will be exempted from paying a sales tax on health products and services here. On other items, you may be required to pay a maximum of 5% sales tax.

4. Cost of Living

The cost of living in Canada is higher than that in the USA. Although you will be getting leverage on health insurance and living rent in Canada, you will be paying higher amounts in utilities, gas, and consumer goods.

Moreover, the average income in both countries is almost equal.

Key Takeaways

Let’s take a look at the key takeaways from this guide.

• The unemployment rate in both countries is very low and both countries have shown immense resilience in stabilizing their economies post-COVID.
• However, the working hours per week are lower in the USA.
• There are a lot of immigration pathways for migration to both countries. However, Canada is providing over 80  different types of immigration programs especially, for highly skilled foreign workers.
• Taxation is also fair in the USA as well as Canada. Employees in Washington are exempted from state taxes. Moreover, purchases of healthcare items and services are exempted from the sales tax in Canada.
• The cost of living in Canada is higher than the cost of living in the USA.