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Income dynamics of new immigrants to Canada

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Key Takeaway
The income gap between recent immigrants to Canada and the Canadian median has diminished.

 

This report provides a comprehensive analysis of the income dynamics of new immigrants to Canada. It emphasizes the substantial rise in the median income of immigrants (mainly those from India, the Philippines and China).  

The authors connect the increase to several factors, including: 

  • more pre-landing work experience (immigrants who had previously worked in Canada on temporary permits had higher income levels when they gained permanent residency) 
  • a higher volume of South Asian immigrants (among whom the income increase was the highest, which increased the overall average)  
  • stronger family ties within Canada  
  • an influx of skilled or educated immigrants landing jobs in professional sectors, like engineering and applied sciences  

The study also examined the impact of Canadian immigration policies, including the Express Entry system, which prioritizes skilled workers. Such policies likely added to the elevated flow of professionally skilled immigrants, whose higher income levels then contributed to the broader improvements in Canada.  

The report concludes by emphasizing that narrowing the income gap between new immigrants and the Canadian median could positively influence Canada’s productivity.

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March, 2024 | The Daily
Key Takeaway: Educational attainment levels among racialized immigrants in Canada rose significantly from 2006 to 2021. This change was likely supported by immigration policies focused on meeting labour market demands.
New
May, 2024 | The Standing Senate Committee on Social Affairs, Science and Technology
Key Takeaway: Canada’s Temporary Foreign Worker Program needs immediate reform to address ethical concerns and streamline support for workers and employers.
New
June, 2024 | The Daily
Key Takeaway: Statistics Canada’s 2023 to 2073 projections of Canada’s population predict significant growth (driven by immigration) and highlight the impact of aging demographics across the provinces and territories.
New
May, 2024 | Vasavithasan, S.
Key Takeaway: Inclusive practices are critical to preparing job postings that will be effective for integrating immigrants and marginalized groups into the Canadian labour market.
New
June, 2024 | Lu, Y., & Hou, F.
Key Takeaway: For certain cohorts of foreign workers in Canada, the rate of transition from work permit holder to permanent resident has increased. However, the change isn’t consistent across work permit programs—in fact, the disparities are significant.
March, 2024 | Richardson, B. & Leach, C.
Key Takeaway: To address long-term economic challenges and labour shortages, Canada must update its immigration policies to prioritize and support economic immigrants and international students and to streamline credential recognition.
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