A recent report from the Montreal Economic Institute (MEI) reveals that 40 per cent of nurses aged 35 and younger are leaving the profession, raising concerns about the sustainability of Canada's healthcare system. The study, released in October 2025, highlights that for every 100 young nurses entering the workforce, 40 exit, placing immense strain on already overstretched healthcare staff.
Burnout Driving Exodus
Emmanuelle Faubert, the MEI economist and author of the report, explains that burnout is a primary driver. "What we're seeing is that nurses are being burnt out, and this leads to a lot of them leaving their profession," she says. The data shows an increased outflow of nurses aged 35 and under, which is detrimental both now and for the future. "Young nurses might be less experienced now, but they represent the experienced nurses of the future. And because they provide a significant portion of direct care to patients, having such an attrition is detrimental to our healthcare system now, but especially in the years to come."
Market Dynamics in Healthcare
The study examined nurse supply data from 2023 and 2024 across Canada, tracking the total number of registered nurses and their average age, which is decreasing. Job vacancy rates surged from around 13,000 in 2018 to more than 41,000 in 2023. In typical markets, such shortages would lead to higher wages and better conditions as employers compete for talent. However, Faubert points to provincial government micromanagement as a key obstacle. "The healthcare industry is a very regulated and mostly public system, with essentially one large employer, the government. In other markets and other fields, you have different types of employers: public, private, and non-for-profit. Because there is one big employer, they don't have the incentives to make changes because there's no competition."
Faubert also criticizes provincial restrictions on nurse agency, citing Quebec's ban on nursing agencies as an example. "Essentially, the government is telling nurses, 'You accept the working conditions I have set up, or you don't work as a nurse in this province.' This is very problematic."
British Columbia's Success Story
The report highlights British Columbia as a province that has effectively addressed attrition. Over the past decade, B.C. improved its inflow-outflow ratio of young nurses by 50 per cent, attributed to increased total inflow of all nurse types. The B.C. College of Nurses and Midwives implemented a triple-track assessment, allowing international applicants to submit one application for three nursing streams—registered nurses, licensed practical nurses, and healthcare assistants—reducing costs and streamlining hiring.
Faubert suggests that system-wide adjustments, such as flexible scheduling and streamlined application processes, are needed to improve attrition rates. Giving nurses more control over their working hours could help alleviate burnout and retain younger professionals in the field.
