Express Entry candidates enjoy higher incomes compared to Canadian-born workers

Newcomers immigrating to Canada through Express Entry programs often experience a significant increase in their median employment income during their first five years, according to the 2023 Year-End Express Entry report. Data from Immigration, Refugees and Citizenship Canada (IRCC) shows that Express Entry candidates tend to have higher median incomes compared to Canadian-born workers.

The report highlights that newcomers admitted between 2016 and 2021 have seen substantial income growth. For instance, those admitted in 2016 had median earnings of $58,400 in their first year, rising to $76,800 by 2021. Similarly, newcomers from 2018 earned a median of $55,200 in their first year, increasing to $70,800 after three years.

In contrast, median employment income for Canadian-born individuals grew only modestly, from $38,006 in 2017 to $40,870 in 2021.

Express Entry candidates, selected based on their Comprehensive Ranking System (CRS) score, are often well-suited to meet Canada’s labour market needs. This score assesses attributes like language ability, work experience, and education. In 2023, IRCC introduced category-based selection rounds, inviting candidates based on specific attributes, such as work experience, rather than just CRS scores. Data on the economic outcomes for these category-based candidates is still pending.

Economic immigrants entering Canada through Provincial Nominee Programs (PNPs), not aligned with Express Entry, generally earn lower median wages, ranging from the mid-$40,000s to low-$50,000s one year after admission.

The report also notes that additional scoring factors in Express Entry applications have limited impact on income. For example, while those with Canadian post-secondary credentials generally earned more, the difference was marginal unless they had the highest scores. Similarly, having siblings in Canada or additional education credentials did not significantly affect median incomes.

However, arranged employment, particularly in senior management roles, was associated with higher median incomes. Newcomers with pre-arranged senior management positions earned over $200,000 two years after arriving, compared to those with other job offers or no arranged employment.