Newcomers who immigrate to Canada through Express Entry-managed programs often experience a rapid boost in their median employment income within their first five years of residence, as per the 2023 Year-End Express Entry report. Data from Immigration, Refugees and Citizenship Canada (IRCC) indicates that the median income of immigrants entering through these programs surpasses that of Canadian-born citizens.
Incomes Consistently Increasing
Since its inception in 2015, candidates entering through the Express Entry system have shown positive long-term economic benefits. According to the 2023 report, newcomers admitted in 2016 had median employment earnings of $58,400 in 2017, which climbed to $76,800 by 2021—five years post-admission. Similarly, those admitted in 2018 earned a median of $55,200 initially, rising to $70,800 three years later. This data underscores the significant wage growth for newcomers.
Conversely, the median employment income for Canadian-born workers remained relatively static over the same period, starting at $38,006 in 2017 and increasing slightly to $40,870 by 2021.
The Role of CRS Scores and Federal High-Skilled Worker Programs
Many newcomers arrive through federal high-skilled worker programs managed by Express Entry and are well-equipped to satisfy Canada’s labour market needs. These candidates receive invitations to apply for permanent residency based on their Comprehensive Ranking System (CRS) scores. The CRS evaluates essential attributes such as language proficiency, work experience, occupation, age, and education. IRCC prioritizes candidates with high CRS scores as they are considered most likely to integrate successfully into the Canadian economy.
In 2023, IRCC introduced category-based selection rounds focusing on specific attributes like work experience rather than an overall high CRS score. However, data evaluating the economic outcomes of these specific entrants is not yet available.
Comparison with Provincial Nominee Programs
Economic immigrants admitted through non-Express Entry streams of Provincial Nominee Programs (PNP) generally experience lower median wages. The report reveals that PNP admission cohorts typically have median employment earnings ranging from the mid-$40,000 to low-$50,000 within one year of admission.
Impact of Additional Scoring Factors on Income
Analyzing data from recent reports, it’s evident that though additional scoring factors in Express Entry applications can sway median incomes, they don’t necessarily guarantee higher earnings two to three years post-admission unless candidates achieved the highest possible scores for these attributes.
For instance, individuals admitted to Canada in 2019 with a three-year or longer post-secondary credential from a Canadian institution exhibited slightly elevated median employment earnings relative to those lacking a Canadian post-secondary credential.
Conversely, those arriving in 2019 with a 1-2 year Canadian post-secondary credential earned a median income lower than individuals without any Canadian education ($51,000 as opposed to $61,100).
Similarly, applicants with siblings in Canada had a median income of $53,100 two years after arrival in 2019, compared to $61,200 for those without siblings in the country.
The only additional scoring factor that consistently correlated with higher median incomes was arranged employment. Notably, the type of employment played a crucial role. For example, all candidates who arrived between 2017 and 2019 with pre-arranged senior management roles reported median incomes exceeding $200,000 two years post-arrival.
Furthermore, candidates with pre-arranged jobs in other occupations also earned higher median incomes compared to those without such offers. For instance, individuals arriving in 2018 with an “other” job offer reported a median income of $84,500, while those without pre-arranged employment had a median income of $60,700.
