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Future of Work

A curated resource of recent research on trends shaping Canada's labor market.

Earnings of one-step and two-step economic immigrants: Comparisons from the arrival year

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Key Takeaway
Immigrants who enter Canada as temporary foreign workers or international students consistently out-earn those directly selected from abroad.

 

This Statistics Canada article focuses on the earnings comparison between one-step and two-step economic immigrants from their arrival year. One-step economic immigrants are those who are directly selected from abroad and granted permanent residency upon arrival in Canada. Two-step immigrants enter Canada as temporary foreign workers or international students first, then obtain permanent residency.  

The study revealed that, from the outset, two-step immigrants consistently out-earn one-step immigrants—and the trend persists over time. The authors point to the professional connections and job opportunities that arise from previous Canadian work experience as the source of the two-step immigrants’ edge. In other words, this group has the chance to establish a network in Canada before attaining permanent residency.  

The report also highlights the potential benefits of policies and programs to help economic immigrants gain Canadian work experience and ease their transition from temporary to permanent residency.

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