A recent study by Statistics Canada found that newcomer entry wage growth outstrips Canadian wage growth. The study looked at real median entry wages for new immigrants one year following their admission over the period of 2021-2022. 

The authors found that over this period, the median wage for newcomers grew by 6.7%, even as Canadians’ overall real median wages dropped by 1.6%. The real median entry wage among newcomers increased from $40,200 in 2021 to $42,900 in 2022. 

Real wages are adjusted for inflation, implying that inflation over this period has been taken into account such that any inflationary increases do not count toward real wage increases. 

How Did The Median Wage Vary Among Immigration Pathways? 

The newcomer entry wage growth outstrips Canadian wage growth. The overall median age one-year following admission increased from 2021 to 2022 when newcomers admitted through all economic immigration pathways were grouped together. 

But when broken down based on the economic pathway, some differences appeared:

  • The median wage among newcomers admitted through the Canadian Experience Class (CEC) and business programs actually decreased.
  • The median wage for caregivers and provincial/ territorial nominees increased slightly. 
  • The median wage for newcomers admitted through the Federal Skilled Worker Program (FSWP) and the Federal Skilled Trades Program (FSTP) increased significantly 
Segment Median Wage In 2021Median Wage In 2022
Business Programs $27,600$24,500
Canadian Experience Class$68,300$56,400
Caregiver $35,200$34,400
Federal Skilled Worker + Federal Skilled Trades $52,000$56,400
Provincial/ Territorial Nominee $47,600$47,700

The decrease in the median wage for CEC immigrants can be attributed to the large increase in CEC admissions – from 25,000 in 2020 to 130,000 in 2021. 

CEC Express Entry draw became less competitive, implying that applicants could receive invitations to apply with lower Comprehensive Ranking System scores. Because education and work experience factor heavily into CRS scores, lower-scoring applicants are likely to earn less than higher-scoring applicants.  

Why Do Median Wages Matter? 

The newcomer entry wage growth outstrips Canadian wage growth. But why do median wages matter? 

For many workers, their annual earnings will tend to increase over time, so a higher median entry wage can lead to significantly greater earnings over the course of a worker’s career. 

Canada’s economic immigration programs have been designed with the aim of admitting skilled workers who are likely to find gainful employment and contribute significantly to the Canadian economy through: 

  • The labor they supply to Canadian business
  • The demand they have for goods and services as consumers 
  • The taxes they pay to federal, provincial, and municipal governments

Higher median wages for newcomers are indicative of greater economic prosperity, both now and in the future, so these wage increases can be seen as a success measure for Canada’s economic immigration programs. 

How Do Newcomer’s Earnings Change Over Time? 

Immigration tends to earn more in Canada over time. 

For those admitted in 2016, for instance, their median employment earnings increased from $58,400 in 2017, to $76,800 in 2021, according to IRCC’s most recent annual Express Entry report. 

As is also apparent in the report, while the median employment earnings vary significantly for each admission year, the upward trend line, with median wages increasing each year after admission, remains consistent across cohorts. 

The wage gap – the difference in median wage between women and men – has been decreasing over time, according to the article by Statistics Canada. 

In 2022, the median wage gap between men and women was significantly lower than in previous years. In 2012, the wage gap was 36.7%, and in 2022, it was 24.4%. 

What Factors Correlate With Higher Earnings Among Newcomers? 

The newcomer entry wage growth outstrips Canadian wage growth. According to a different study by Statistics Canada published in 2020, the following factors are predictive of higher employment earnings among newcomers: 

  • Higher amount of Canadian work experience prior to landing 
  • Excellent official language proficiency 
  • Higher level of education 
  • Lower age at landing

Pre-landing Canadian work experience was the strongest predictor of the highest earnings among newcomers. 

A lower age at landing had a significant impact on earnings both 5 – 6 years after landing and 10-11 years after landing. 

How Do Foreign Nationals Gain Canadian Work Experience Prior To Landing? 

Foreign nationals can legally work in Canada prior to landing through a variety of programs, including: 

  • Study permits 
  • International Mobility Program work permits 
  • Temporary Foreign Worker Program work permits 

Several Provincial Nominee Programs (PNPs) will support nominees in obtaining work permits. The Atlantic Immigration Program (AIP) can provide nominees with a two-year work permit. 

If you seek information on how to begin your Canada immigration application process, you can talk to our NavaImmigration experts at 1800-918-8490, or you can drop us an email at [email protected].