In a report released on December 9, 2024, Statistics Canada revealed that newcomer entry wages have grown significantly, even as real wages for Canadians have declined.
The report focused on the real median entry wages of immigrants one year after arriving in Canada, comparing data from 2021 and 2022. Over this period, newcomer wages increased by 6.7%, climbing from $40,200 in 2021 to $42,900 in 2022. Meanwhile, real median wages for Canadians dropped by 1.6%. These numbers account for inflation, meaning the growth reflects actual increases in purchasing power.
How did median wages differ across various immigration pathways?
The overall median wage for newcomers one year after admission rose between 2021 and 2022 when considering all economic immigration pathways together.
However, differences emerged when examining specific pathways:
- Median wages decreased for newcomers admitted through the Canadian Experience Class (CEC) and business programs.
- Caregivers and provincial/territorial nominees saw slight wage increases.
- Significant wage growth was observed among newcomers admitted through the Federal Skilled Worker Program (FSWP) and the Federal Skilled Trades Program (FSTP).
| Segment | Median wage in 2021 | Median wage in 2022 |
|---|---|---|
| Business Programs | $27,600 | $24,500 |
| Canadian Experience Class | $68,300 | $56,400 |
| Caregiver | $35,200 | $35,400 |
| Federal Skilled Worker + Federal Skilled Trades | $52,000 | $56,400 |
| Provincial/territorial Nominee | $47,600 | $47,700 |
The decline in the median wage for CEC immigrants is linked to the significant rise in CEC admissions, which jumped from 25,000 in 2020 to 130,000 in 2021.
As CEC Express Entry draws became less competitive, candidates with lower Comprehensive Ranking System (CRS) scores received invitations to apply (ITAs). Since CRS scores heavily consider education and work experience, lower-scoring candidates tend to earn less than those with higher scores.
Why are median wages important?
The article highlights that newcomers’ median wages can serve as a strong indicator of their future economic success.
For most workers, annual earnings tend to grow over time, meaning a higher entry-level wage can result in significantly greater lifetime earnings.
Canada’s economic immigration programs are designed to bring in skilled workers who are likely to secure meaningful employment and contribute to the economy by:
- Providing labor to Canadian businesses,
- Creating demand for goods and services as consumers, and
- Paying taxes at the federal, provincial, and municipal levels.
Higher median wages among newcomers signal increased economic prosperity, reflecting the success of these immigration programs in achieving their goals.
How do newcomers’ earnings evolve?
Immigrants in Canada typically see their earnings grow over time.
For example, those admitted in 2016 saw their median employment earnings rise from $58,400 in 2017 to $76,800 in 2021, as noted in IRCC’s latest annual Express Entry report.
While median earnings vary across different admission years, the overall trend shows consistent wage growth for newcomers each year after arrival.
The article by Statistics Canada also highlights a decrease in the wage gap between men and women over time. In 2022, the gap was notably smaller than in previous years, dropping from 36.7% in 2012 to 24.4% in 2022.
What factors are linked to higher earnings among newcomers?
A 2020 study by Statistics Canada identified several factors that are linked to higher earnings among newcomers:
- More Canadian work experience before arriving,
- Strong proficiency in one of Canada’s official languages,
- Higher educational attainment, and
- A younger age at the time of landing.
Among these, prior Canadian work experience was the most significant predictor of higher earnings.
Additionally, arriving at a younger age had a noticeable impact on earnings, both 5–6 years and 10–11 years after landing.
How can foreign nationals gain Canadian work experience before arriving in Canada?
Foreign nationals can gain Canadian work experience before arriving by participating in several programs, such as:
- Study permits,
- International Mobility Program (IMP) work permits,
- Temporary Foreign Worker Program (TFWP) work permits.
Additionally, various Provincial Nominee Programs (PNPs) assist nominees in obtaining work permits, and the Atlantic Immigration Program (AIP) offers a two-year work permit to its nominees.
