Newcomers immigrating to Canada through Express Entry-managed programs experience significant increases in median employment income during their first five years in Canada, according to the 2023 Year-End Express Entry report. Data from Immigration, Refugees and Citizenship Canada (IRCC) shows that the median income of these newcomers surpasses that of Canadian-born individuals.
The report analyzes the median employment incomes of Express Entry candidates admitted between 2016 and 2021. It highlights that those admitted in 2016 had median earnings of $58,400 in 2017, which rose to $76,800 by 2021. Similarly, newcomers admitted in 2018 saw their median income grow from $55,200 in their first year to $70,800 three years later. In contrast, the median income for Canadians remained relatively stable, starting at $38,006 in 2017 and increasing to $40,870 by 2021.
Express Entry candidates are selected based on their Comprehensive Ranking System (CRS) score, which assesses key human capital attributes such as language ability, work experience, occupation, age, and education. IRCC introduced category-based selection rounds in 2023, focusing on specific attributes like work experience rather than overall CRS scores.
The report also notes that economic immigrants admitted through non-Express Entry-aligned Provincial Nominee Program (PNP) streams tend to have lower median wages, ranging between the mid $40,000s to low $50,000s one year after admission.
While additional factors in an Express Entry application, such as Canadian education or having siblings in Canada, can influence income, they do not always lead to higher median earnings. For instance, those with a three-year or more Canadian post-secondary credential earned slightly more than those without, but applicants with a one- to two-year credential had lower median incomes compared to those with no Canadian education.
However, arranged employment consistently resulted in higher median incomes, particularly for those in senior management roles, who had median earnings exceeding $200,000 two years after landing. Those with pre-arranged employment in other occupations also saw higher incomes than those without job offers, with 2018 arrivals reporting median incomes of $84,500 compared to $60,700 for those without arranged employment.
