A weak Canadian dollar is providing a “challenge” for employers of multinational companies seeking to place expatriates on assignment in Canadian cities, an annual cost-of-living survey has found.
Vancouver remains the priciest city in Canada for expatriates, followed closely by Toronto and Montreal, but those cities have dropped in rankings from previous years, an annual cost-of-living survey has found.
Consulting group Mercer’s annual ranking compares the cost of living expenses for expatriates, such as housing, food, clothing and transportation, in more than 200 cities around the world.
Canadian cities dropped in this year’s ranking, mostly due to a falling Canadian dollar. For instance, Vancouver, which ranked 142nd on the list, fell 17 spots from last year. Toronto, which ranked 143rd, also dropped 17 spots while Montreal, ranked 155th, fell 15 spots.
Gordon Frost, talent leader for Mercer Canada, said in a statement that while the cost of living continues to rise in Vancouver and Toronto for local residents, the weak dollar makes them “compelling” for expatriates. “However, the depressed dollar provides a challenge to Canadian organizations looking to place employees in cities around the world,” Frost said.
Comparatively, U.S. cities have climbed in ranking due to the strength of their dollar “against major currencies.”
The 22nd annual survey, which aims to help multinational organizations create expat compensation strategies, found that factors such as currency fluctuations, inflation, and accommodation prices contribute to “the cost of expatriate packages for employees on international assignments.”
Top 3 most expensive cities:
- Hong Kong
- Luanda, Angola
- Zurich
Top 3 least expensive cities:
- Windhoek, Namibia
- Cape Town
- Bishkek, Kyrgyzstan
