As per a new study by Statistics Canada, over recent years, the wages for immigrants in Canada have been rising up.
Candidates who immigrated to Canada in 2018 as permanent residents reported a median wage of $31,900 in the following year, and this is the highest wage rate since 1981. When mentioned in percentages, the median wage reported by permanent residents (who immigrated in 2017) was 4 percent higher compared to what they earned in 2018. However, if compared to the numbers with those of Canadian-born workers, there is a difference of almost 18%, as Canadian-born workers reported a median wage of $38,800 in 2019.
The above data was presented by Statistics Canada on the basis of their recent study focusing on the wages of immigrants. This study used the data available in the Longitudinal Immigration Database, which provides the researchers with a better insight into the characteristics of the immigrants during their admission, and further provides information in context to the immigrants’ economic trends and demographical mobility. This study was released as the first part of a two-part series focusing on immigrant outcomes, and the second part talks about immigrant mobility.
On the other hand, in 2019, the median wages of the principal applicants of economic-class immigration programs were higher compared to those of Canadian-born workers. The immigrants who landed in Canada in 2018 as permanent residents had a median wage of $43,600 in the following year; however, for the Canadian-born population, the median wage was $38,800 in the same year, which is 12% lower compared to immigrant wages. The rationale behind this difference may be related to how these economic-class immigrants are selected.
The report states, “Principal applicants in the economic categories are selected for their ability to integrate into the Canadian labour market and to contribute to the economy. Many have post-secondary education and knowledge of at least one official language.”
Work Experience in Canada gives a boost to the earnings.
Usually, the candidates who have previous experience (on a study or employment visa for a temporary period) in Canada have better wages, as the pre-immigration experience helps the candidates to gain knowledge about the Canadian labour market and improve their language skills. There are three categories of Canadian experience, including only work experience, only study experience, and both work and study experience.
The research reveals that candidates who had both study and work experience in Canada before landing in the country had the highest median wage in the following year. When mentioned in numbers, these immigrants who landed in 2018 had median wages of $44,600 in 2019, and for the same year, the Canadian-born workers reported median wages of $38,800.
Previous work-related experience in Canada also created a positive impact on the wages of the immigrants, as in 2018, candidates who had prior work experience in Canada before landing reported median wages of $39,300, and this number is also higher compared to those for Canadian-born population.
Immigrants who only had previous study experience in Canada had the minimum median wages after one year to landing ($15,100 in 2019). The possible explanation here is that, on average, this immigrant group is younger compared to their counterparts.
Thus, in all the above three groups, the immigrants who landed in 2018 had higher median wages in the following year compared to the immigrants who landed in 2017.
Pay differences between immigrant men and women
Median wages for both men and women trended up across all the immigration categories between 2010 and 2019, although immigrant men and women profited differentially from the change.
The median wages for women principal applicants in the economic-class programs started lower compared to those of men principal applicants, and furthermore, the median wages of men increased at a higher rate, which led to an increase in the wage difference between men and women over the years. The study states that more analysis is required to understand the cause of this difference in wages of men and women.
As mentioned above, for principal applicants, men’s wages increased faster than women’s; however, for all rest of other immigration categories, there was an opposite effect. For the following immigration categories, women’s median wages started lower compared to men’s median wages, but women’s wages increased at a faster rate comparatively.
- Economic dependents (for example, spouses and common-law partners of principal applicants)
- Family-sponsored immigrants
- Refugees
So, as a result of growing median wages for women in the above three immigration categories, the wage gap between men and women reduced during the duration of the study.
Check our blogs section for the latest news related to Canadian immigration, including the various updates on the Canada Express Entry system shared by the IRCC.
