Immigrants admitted to Canada in 2016 reported a median entry wage of $25,900 in 2017, the highest recorded among immigrants admitted since 1981. Although the entry wages of recent immigrants have increased over the past few years, their income remains lower than that of the overall Canadian population. The Canadian Income Survey estimated the Canadian population’s median wage at $36,100 in 2017.
When immigrants arrive in Canada, they face a number of challenges, such as getting their credentials recognized, being able to speak one of the official languages and acquiring Canadian work experience. However, the longer immigrants live in Canada, the more their income increases and, for some, their income reaches the level of the overall Canadian population.
This analysis uses new data from the Longitudinal Immigration Database (IMDB), which comprises information on permanent and non-permanent (temporary) residents, including asylum claimants. It presents the type of information that can be extracted from the IMDB and its outputs to better understand how the socioeconomic situation of these individuals has evolved.
Recent immigrants have higher entry wages and more work experience prior to admission than before
Over the past 10 years, the median entry wage of immigrants, one year after admission, in 2017 constant dollars, has increased from $20,400 for the 2007 admission year to $25,900 for the 2016 admission year (+27%).
Not all immigrants face the same challenges after admission. Those who had work experience in Canada upon admission reported the highest median entry wages. For the 2016 admission year, income one year after arrival was $39,800 for study and work permit holders, and $38,100 for work permit holders only. These wages are comparable with those of the entire Canadian population. For immigrants who had no experience prior to admission, or who had a study permit only, incomes were $19,900 and $12,500, respectively.
In recent years, an increasing number of non-permanent resident permit holders are transitioning to permanent residence. The observed growth in entry wages can be partly accounted for by differences in income between immigrants with pre-admission work experience in Canada and immigrants without such work experience. From the 2007 admission year to the 2016 admission year, the number of immigrant taxfilers one year after arrival who had work experience in Canada increased by 166%, while the number of immigrants without work experience rose 2%.
Chart 1 – Number of immigrant taxfilers one year after admission, by admission year and work experience in Canada prior to admission
Immigrants who hold at least a pre-admission study permit have stronger wage catch-up in the 10 years after admission
Overall, immigrants’ wages increase with the number of years since admission and, for some, their wages eventually reach that of the overall Canadian population ($36,100). For example, the median wage for immigrants admitted in 2007 increased from $20,400 in 2008 to $33,500 in 2017, an increase of 64%.
Wage catch-up factors include pre-admission work experience, which facilitates integration through increased knowledge of official languages and the development of professional networks in Canada, among other things. In 2017, immigrants admitted in 2007 who had held both a study permit and a work permit prior to admission had the highest median wage (up 81% to $63,800), and their wage exceeded that of immigrants who held only a work permit (up 36% to $48,100) and that of Canadians as a whole. The median wage of immigrants admitted in 2007 who held only a pre-admission study permit increased significantly over 10 years (up 163% to $37,600) and now exceeds the median wage of immigrants without pre-admission experience (up 72% to $30,700).
Chosen excerpts by Job Market Monitor. Read the whole story at The Daily — Changes in outcomes of immigrants and non-permanent residents, 2017