Express-entry immigrants in Canada experience income growth, with notable rises in median employment income within a five-year period.
According to the IRCC’s 2023 Year-End Express Entry report, the median income of immigrants admitted to Canada via the Express Entry program is higher than that of people who were born in the country. The research looks at the median employment wages of those who were approved for Express Entry between 2016 and 2021.
Wages rising consistently
A positive long-term economic impact has been routinely experienced by Express Entry candidates since its introduction in 2015.
In 2023, the research showed that those who were accepted in 2016 had median job earnings of $58,400 in 2017. Five years following their arrival, in 2021, their earnings had climbed to $76,800. Furthermore, the typical salary of newly admitted immigrants in 2018 was $55,200 in their first year and increased to $70,800 in three years. This indicates that earnings for newcomers are growing quickly.
On the other hand, the median employment income in Canada did not change much over the course of the five years, rising only to $40,870 by 2021 from $38,006 in 2017.
Through government high-skilled worker programs like Express Entry, new immigrants are frequently well-suited to satisfy the demands of Canada’s labor market. Based on their CRS score, which evaluates in-demand human capital variables like language proficiency, work experience, vocation, age, and education—they are asked to apply for permanent residency. The people who have the highest CRS ratings are deemed by the IRCC to have the best chance of integrating successfully into the Canadian economy.
By implementing category-based invitation selection rounds in 2023, the IRCC improved upon this strategy. Applicants for Express Entry are invited to these draws based on a particular factor, usually their job experience, rather than just a high CRS score. Data regarding these newcomers’ economic outcomes, however, is currently unavailable.
The median salary of economic immigrants admitted to Canada via a Provincial Nominee Program stream that is not in line with Express Entry, on the other hand, is often lower. One year following admission, the research shows that the median employment earnings for PNP entrance cohorts varied from the mid-$40,000s to the low $50,000s.
Extra points have a negligible effect on income levels
According to the study, while additional components of an Express Entry application can affect median incomes, unless candidates receive the top scores in those areas, they do not considerably increase earnings two to three years after entry. According to the report, applicants who came to Canada in 2019 and finished three or more years of post-secondary education at a Canadian university saw a marginal increase in their median salary over those who did not.
On the other hand, the median salaries of individuals accepted in 2019 who had completed one to two years of post-secondary education in Canada and those who had not attended any post-secondary institution in Canada were $51,000 and $61,100, respectively, lower.
There was a noticeable tendency for immigrants with siblings living in Canada: among those who came in 2019, the median salary two years after arrival was $53,100 for those who had a sibling who was a citizen or permanent resident of Canada, while it was $61,200 for those who did not have a sibling. Another important feature associated with higher median salaries was prearranged employment, with earnings varying depending on the sort of job. Arriving between 2017 and 2019, newcomers with top management posts already planned made over $200,000 on average.
Furthermore, those who had prearranged jobs in different roles made more money than those who didn’t. In 2018, for example, the median salary of newcomers who arrived with a work offer in a “other” occupation was $84,500, whereas the income of those who arrived without any pre-arranged employment was $60,700.
