Statistics Canada released an updated report on the Successful traits of Canadian immigrants selection and the earnings of principal applicants recently. IRCC developed Express Entry’s CRS in 2015 as an update to the 2015 investigation that guided its development.
Based on an analysis of the immigration cohort of 2005-2015 (and their earnings from 2006-2017). This study investigated the traits of applicants (at landing) that predicted earnings in Canada over the short (one to two years), medium (five to six years), and long (ten to eleven years).
In terms of landing traits, the following were measured:
- Prior work experience in Canada (compared to those without experience).
- The ability to speak English and French (natural and non-native speakers).
- The age gap between young (25-29 years of age) and older (50-54 years of age).
- Comparing Bachelor’s degrees with secondary school education.
What factors affect the successful traits of Canadian immigrants’ short-term earnings?
The study found that the following were the primary variables that affected immigrants’ short-term earnings:
- The first one to two years after immigration are the best predictors of earnings. Every year of Canadian work experience translates into an 84% rise in earnings.
- The earnings of those who speak English but speak another language as their first language are 29% lower than those who speak both French and English as their first language.
- Studies show that people with bachelor’s degrees (15 years of education) make 12–24% more money in the short term.
What factors affect immigrants’ medium-term incomes in Canada?
Among the factors that affected medium-term earnings, the study found:
- It is still a good indication of future income that Canadian job experience in the five years or more prior to landing; a year of work experience increased income by 52–59% per year.
- People with an official language as their mother tongue earned 42% more.
- A strong correlation was found between long-term wages and age, with older immigrants earning 25% to 35% less than younger immigrants.
- Higher earnings are associated with bachelor’s degrees.
What factors affect immigrants’ long-term incomes in Canada?
The long-term earnings of immigrants were affected by the following factors:
- A 45% rise in each year of Canadian job experience has diminished the most critical factor since landing ten years ago.
- Immigrants who were younger when they landed had a 44% higher income even 10–11 years after landing.
- Individuals with less fluency in official languages had a 35% decrease in income.
- For individuals with a bachelor’s degree, education increased earnings by 23%.
In summary
With each subsequent year of immigration to Canada, immigrants’ negative effects of age, positive effects of education, and gradually diminishing effects of prior work experience in Canada all increased.
Earnings before landing: The hidden variable
Statistics Canada also analyzed the wages earned by immigrants prior to landing for the cohort.
When short-, medium-, and long-term earnings were taken into account, pre-landing earnings had the greatest impact. Immigrant economic success was largely determined by this indicator.
This may be due to the fact that education, and pre-landing work experience. As well as language proficiency is associated with pre-landing earnings.
An immigrant’s prior employment experience, particularly their prior Canadian employment experience. It is the best predictor of their wages in the short, medium, and long terms.
What impact does this study have on immigration?
Study of Comprehensive Ranking System’s Technical Manual, first published in 2015, is an update of the study. As part of Express Entry, the federal government’s main economic immigration program. IRCC uses the Comprehensive Ranking System to rank applicants.
It is therefore important that candidates interested in applying through Express Entry’s programs like FSWP (Federal skilled worker Program), FSTP – (Federal Skilled Trades Program), and CEC – (Canadian Experience Class) understand the results of this study. As well as the importance of certain immigrant characteristics (such as pre-landing Canadian work experience, and age).
In light of the findings of this study, the CRS may change the weightings given to education, proficiency in an official language, and other CRS characteristics.
The Provincial Nominee Program (PNP) is also available to qualified skilled workers applying for Express Entry. A further economic immigration scheme is the PNP. It allows provinces and territories to nominate qualified workers for immigration and eventual settlement as permanent residents in their respective regions. Candidate success with Express Entry can also be improved with Enhanced Provincial Nomination, which grants applicants 600 additional CRS points.
