Canadian work experience and education boosts immigrant earning potential; study

Shelby Thevenot
Published: December 16, 2019

Prior Canadian work experience makes a big difference to the entry-level wages that new immigrants earn, a Statistics Canada study shows.

The report looking at outcomes for permanent residents who were admitted to Canada in 2016 found that those with prior work experience in Canada had the highest median entry wages of those studied after one year.

New permanent residents who had both worked and studied in Canada had a median entry wage of $39,800 one year after arrival, while those who had been work permit holders only had a median income of $38,100.

“These wages are comparable with those of the entire Canadian population,” Statistics Canada says.

The median entry wage for the 2016 cohort as a whole was $25,900 in 2017, which the study said was “the highest recorded among immigrants admitted since 1981.”

This outcome, however, fell well short of the Canadian population’s median wage of $36,100 in 2017.

More Canadian work experience, more earnings

Statistics Canada said the observed growth in entry-level wages could be partly explained by the fact an increasing number of non-permanent resident permit holders with Canadian work experience are transitioning to permanent residence.

“From the 2007 admission year to the 2016 admission year, the number of immigrant taxfilers one year after arrival who had work experience in Canada increased by 166% while the number of immigrants without work experience rose 2%,” the study notes.

Immigrants’ wages generally increase with the number of years since getting permanent residence. Looking back at immigrants who were admitted to Canada in 2007, their median wage one year after arrival was $20,400. By 2017, the median wage of the same cohort reached $33,500, an increase of 64 per cent.

A closer look at who saw the most gains in that 10-year span reveals that once again, work permit and study permit holders had the highest median wage, which was up 81 per cent to $63,800 in 2017.

“Their wage exceeded that of immigrants who held only a work permit (up 36 per cent to $48,100) and that of Canadians as a whole,” Statistics Canada said.

Pre-admission work experience also plays a role in retention. The study says 90 per cent of Economic-Class immigrants who were admitted to Canada in 2012 were still in the same province five years later.

Those without pre-admission Canadian work experience had a retention rate of 81 per cent.

Overall, 86 per cent of immigrants who were admitted in 2012 filed a 2017 tax return in the same province where they first settled as permanent residents.

Find out if you are eligible for any Canadian immigration programs

© 2019 CIC News All Rights Reserved

Share this article
Share your voice
Did you find this article helpful?
Thank you for your feedback.
Subscribe to our newsletter
Did you find this article helpful?
Please provide a response
Thank you for your helpful feedback
Please contact us if you would like to share additional feedback, have a question, or would like Canadian immigration assistance.
  • Do you need Canadian immigration assistance? Contact the Contact Cohen Immigration Law firm by completing our form
  • Send us your feedback or your non-legal assistance questions by emailing us at media@canadavisa.com
Related articles
IRCC issues thousands of invitations to CEC candidates, with lowest cut-off score since September 2024
An overhead picture of Niagara Falls and the American-Canadian border.
IRCC issues invitations to Express Entry candidates in first draw of July
The maid of the mist travels upriver on Canada's Niagara Falls
Canada postpones removal of study programs from PGWP eligibility
A group of graduates wearing graduation caps with blue tassels.
University of Toronto set to host Harvard students affected by US visa uncertainty
The exterior of University of Toronto
Top Stories
8 Easy Steps for Increasing Your CELPIP Speaking Score!
How foreign work experience can boost your CRS score in a competitive Express Entry pool
BREAKING: Quebec has hit cap for spousal sponsorship undertakings
Join our free newsletter. Get Canada's top immigration stories delivered to your inbox.
Subscribe
More in Provinces
BREAKING: Quebec has hit cap for spousal sponsorship undertakings
A picture of the Quebec parliament building on a summer day.
Alberta holds two draws inviting candidates for provincial immigration
People dine outdoors on a closed downtown street in Canmore Alberta
The OINP can now return applications for nomination
A picture of the Toronto skyline at sunset
Manitoba’s PNP issues invitations to skilled workers and international student graduates
A picture of a bridge in North Manitoba with a river
Link copied to clipboard