Express Entry Immigrants in Canada Experience Income Growth
Immigrants in Canada who enter through the Express Entry program have seen a significant increase in their median employment income over five years.
The IRCC’s 2023 Year-End Express Entry report reveals that immigrants admitted to Canada through the Express Entry program have a higher median income compared to individuals born in the country. The study examines the median employment wages of individuals who were approved for Express Entry from 2016 to 2021.
Overview of the Canada Express Entry Program
The Canadian Immigration Minister has recently announced that “Express Entry draws” will be resuming in early July 2022. This is great news as it means there will be more opportunities for individuals to obtain permanent residency in Canada. Discover all the essential information about Express Entry and how this recent announcement could open up opportunities for you to live and work in Canada.
What is Express Entry, and who is it for?
Express Entry is a program designed to facilitate the immigration process for skilled workers who wish to move to Canada. It is a system that allows individuals to submit their profiles and be considered for permanent residency based on their qualifications. This program is ideal for those who possess the necessary skills and experience that are in demand in the Canadian labour market. It provides a streamlined and efficient pathway for eligible candidates to become permanent residents of Canada.
The Express Entry program is designed for skilled workers who wish to make Canada their permanent home by obtaining permanent residency. Discover if you meet the requirements for a skilled worker by completing a convenient online eligibility questionnaire (more details are provided below).
What the Express Entry draw is
The Canadian government utilizes an “Express Entry draw” to determine which individuals will be extended an invitation to apply for permanent residency through Express Entry. The system chooses the most qualified candidates from the pool of applications. Ranking as a candidate depends on various factors.
Wages rising consistently
Express Entry candidates have consistently experienced a positive long-term economic impact since its introduction in 2015.
According to the research conducted in 2023, individuals who were accepted in 2016 experienced a median job earnings of $58,400 in 2017. After five years, in 2021, their revenues had increased to $76,800. In addition, the average salary for newly arrived immigrants in 2018 was $55,200 in their initial year, which then rose to $70,800 within three years. The data suggests that earnings for newcomers are experiencing rapid growth.
However, the median employment income in Canada remained relatively stable over the five years, with a modest increase from $38,006 in 2017 to $40,870 in 2021.
Category-Based Selection Enhances Express Entry
New immigrants who participate in government high-skilled worker programs like Express Entry often possess the qualifications needed to meet the demands of Canada’s labour market. Applicants are requested to apply for permanent residency based on their CRS score, which assesses important factors such as language proficiency, work experience, occupation, age, and education. The individuals with the highest CRS ratings are considered by the IRCC to be well-suited for successful integration into the Canadian economy.
The implementation of category-based invitation selection rounds in 2023 marked a significant improvement in the strategy employed by the IRCC. Applicants for Express Entry are selected for these draws based on a specific factor, typically their job experience, rather than solely relying on a high CRS score. Unfortunately, there is currently no data available regarding the economic outcomes of these newcomers.
On the other hand, economic immigrants admitted to Canada through a Provincial Nominee Program stream that is not in line with Express Entry often have a lower median salary. The research indicates that the median employment earnings for PNP entrance cohorts ranged from the mid-$40,000 to the low $50,000 after one year of admission.
Extra points have a minimal impact on income levels
The study suggests that although other factors in an Express Entry application may impact median incomes, they do not significantly raise earnings two to three years after entry unless candidates achieve top scores in those areas. The report states that individuals who arrived in Canada in 2019 and completed three or more years of post-secondary education at a Canadian university experienced a slight rise in their median salary compared to those who did not.
However, it is worth noting that the median salaries of individuals accepted in 2019 who had completed one to two years of post-secondary education in Canada and those who had not attended any post-secondary institution in Canada were lower. Specifically, the median salary for the former group was $51,000, while the latter group had a median salary of $61,100.
The data reveals a clear pattern among immigrants who arrived in 2019: those with siblings residing in Canada had a median salary of $53,100 two years after arrival, whereas those without siblings had a slightly higher median salary of $61,200. Prearranged employment was found to be a significant factor in determining higher median salaries, with earnings varying based on the type of job. Between 2017 and 2019, newcomers in top management positions earned an average salary of over $200,000.
In addition, individuals who secured employment in various positions earned higher salaries than those who had not. In 2018, for instance, withers who had a work offer in an “other” occupation had a median salary of $84,500, while those who arrived in any pre-arranged employment had an income of $60,700.
Conclusion
The 2023 Express Entry report highlights the financial benefits of this immigration pathway. Newcomers seamlessly integrate into the Canadian economy and often surpass the income levels of Canadian-born citizens within a few years. Express Entry is expected to continue playing a crucial role in Canada’s economic growth through skilled immigration as IRCC works on improving its selection processes.