A recent report from Immigration, Refugees and Citizenship Canada (IRCC) reveals that immigrants who enter Canada through the Express Entry system experience significant growth in their employment income within their first five years. According to the 2023 Year-End Express Entry report, newcomers admitted through this program tend to outperform their Canadian-born counterparts in terms of median employment earnings.
The data highlights the steady rise in income for Express Entry candidates admitted between 2016 and 2021. For instance, individuals who immigrated in 2016 saw their median income increase from $58,400 in 2017 to $76,800 by 2021. Similarly, those admitted in 2018 earned a median income of $55,200 in their first year, which rose to $70,800 three years later. In contrast, the median income for Canadian-born workers remained relatively flat, starting at $38,006 in 2017 and growing only slightly to $40,870 by 2021.
Express Entry is designed to attract high-skilled workers who are well-suited to meet Canada’s labor market needs. Candidates are selected based on their Comprehensive Ranking System (CRS) score, which evaluates various attributes like language proficiency, work experience, age, and education. Those with higher CRS scores are more likely to integrate successfully into the Canadian economy.
In 2023, IRCC introduced category-based selection rounds, where candidates are invited based on specific attributes, such as work experience, rather than their overall CRS score. Although data on the economic outcomes of these newcomers is still forthcoming, the trend suggests that Express Entry continues to yield positive results for immigrants.
Provincial Nominee Program (PNP) candidates, not aligned with Express Entry, tend to have lower median incomes, ranging between the mid $40,000s to low $50,000s during their first year in Canada.
Additional factors, such as Canadian education credentials or having siblings in Canada, had varied impacts on income levels. Interestingly, arranged employment prior to landing in Canada proved to be a strong indicator of higher median earnings, particularly for those in senior management roles, where incomes exceeded $200,000 two years after arrival.
The report underscores the success of Express Entry as a key driver of economic prosperity for newcomers to Canada, helping them achieve financial stability and contribute to the country’s labor market.