According to Statistics Canada, pre-landing Canadian work experience, proficiency in English or French, education, and age were all factors that influenced immigrants' earnings in Canada.
Recently, Statistics Canada released their report “Immigration selection factors and the earnings of principal applicants”. The report was an update of the 2015 investigation that helped guide development of Express Entry’s Comprehensive Ranking System (CRS); the main way that skilled foreign workers are assessed by Immigration Refugees and Citizenship Canada (IRCC).
Analyzing the 2005-2015 immigration cohort (and their earnings from 2006-2017), the study looked at what characteristics of applicants (at the time of landing) were the most predictive of the earnings in Canada, for the short (one to two years), medium (five to six years), and long-term (10 to 11 years).
3. Recently, Statistics Canada released their
report “Immigration selection factors and the earnings of
principal applicants”. The report was an update of
the 2015 investigation that helped guide development
of Express Entry’s Comprehensive Ranking
System (CRS); the main way that skilled foreign workers
are assessed by Immigration Refugees and Citizenship
Canada (IRCC).
Analyzing the 2005-2015 immigration cohort (and their
earnings from 2006-2017), the study looked at what
characteristics of applicants (at the time of landing) were
the most predictive of the earnings in Canada, for the
short (one to two years), medium (five to six years), and
long-term (10 to 11 years).
4. The primary traits measured at landing were:
Years of pre-landing Canadian work experience
(compared to those with no experience);
Ability in official languages (English or French
(Native speakers VS. Less proficiency);
Age—Younger (25-29 years) VS. Older (50-54 years);
and
Education (Bachelor’s VS. Secondary school
education);
5. What impacts short-term earnings for immigrants in
Canada?
According to the study, the main factors that impacted
the short-term earnings of immigrants included:
Pre-landing Canadian work experience, which was the
strongest predictor of earnings in the first one to two
years of immigration—every year of Canadian work
experience equated to an 84% increase in earnings;
Language ability—those who had a mother tongue other
than French or English, (but who spoke English) earned
29% less than those who had either French or English as
a mother tongue; and
Education, showing those who had received a Bachelor’s
degree (15 years of schooling) earned 12-24% more in the
short-term.
6. What impacts medium-term earnings for immigrants
in Canada?
Per the results of the study, medium-term earnings were
impacted by:
Pre-landing Canadian work experience—still the
strongest predictor of earnings five plus years after
landing: every one year of Canadian work experience
equated to a 52-59% increase in earnings;
Language ability, as those with an official language as
their mother tongue earned 42% more;
Age, which had a stronger correlation to earnings than in
the short-term (i.e.: older immigrants earned 27-35%
less than younger ones); and
Education; with Bachelor’s degree graduates earning 14-
21% more.
7. What impacts long-term earnings for immigrants in
Canada?
According to the study, long-term earnings for
immigrants were influenced by:
Pre-landing Canadian work experience—even after a
decade remaining the most impactful factor—weakened
to a 45% increase for every one year of Canadian work
experience;
Age at landing, revealing that younger immigrants
earned 44% more than older ones, even 10-11 years after
landing;
Official language ability, which reduced earnings of those
less proficient in official languages by 35%; and
Education, which yielded a stronger effect: a 23%
increase in earnings for those with a Bachelor’s degree.
8. 6The hidden variable: Pre-landing
earnings
There was also another variable that Statistics
Canada measured at landing for immigrants in the
cohort: pre-landing earnings.
When considered into the analysis, pre-landing
earnings accounted for more impact on short,
medium, and long-term earnings than any other
variable considered in the study. It was by far the
most predictive factor of immigrant earnings success
across the board.
9. The study comes to the conclusion that this may be
down to the fact that pre-landing earnings are
associated with a number of factors, including
education, pre-landing work experience, and
language ability.
The study further suggests that it may be the quality
of pre-landing work experience (and especially pre-
landing Canadian work experience) that appears to
be the most predictive factor in an immigrant’s
earnings in the short, medium, and long-term.
10. How does this study influence
immigration?
This study is an update of the study published in 2015,
that served as the initial technical guide to the
Comprehensive Ranking System— the ranking system
that IRCC uses when assessing economic candidates for
immigration through Express Entry (the federal
government’s main stream of economic immigration).
Thus, candidates looking to apply through Express
Entry’s system of programs (including the Federal Skilled
Worker Program (FSWP), Federal Skilled Trades
Program (FSTP), and the Canadian Experience
Class (CEC) should understand the results of this study,
and the weighting that it gives to certain immigrant traits
(for example the quality of pre-landing Canadian work
experience, and age).
11. CRS factors are also covered in this study (education,
official language ability, etc.); and updates in the
CRS weighting given to these factors may follow
along the lines this study has illuminated.
Skilled worker candidates eligible for Express Entry,
may also apply to the Provincial Nominee
Program (PNP). The PNP is another economic
immigration program wherein provinces and
territories are able to nominate skilled workers for
immigration to their provinces, allowing them to
arrive and settle in Canada as permanent residents.
Receiving a provincial nomination can also help with
Express Entry success through the Enhanced .