Express Entry immigrants see rapid income growth in Canada with significant increases in median employment income within five years.
IRCC released its 2023 Year-End Express Entry report, which shows that newcomers who entered Canada under the Express Entry program have a higher median income than people who were born in Canada. The study looks at the candidates for Express Entry who were accepted between 2016 and 2021 and their median employment wages.
Incomes steadily increasing
Candidates under Express Entry have continuously shown favorable long-term economic results since the program’s inception in 2015. As per the 2023 report, those who were accepted in 2016 had median employment earnings of $58,400 in 2017. Five years following their entrance, in 2021, their earnings had climbed to $76,800. Comparably, 2018 admittees made a median salary of $55,200 in their first year and $70,800 three years later, demonstrating the sharp increase in their pay.
While it increased to just $40,870 in 2021, the median employment income for Canadians throughout the five-year period was much lower than that of immigrants, starting at $38,006 in 2017.
Category-Based Selection Enhances Express Entry
Newcomers who enter Canada under government high-skilled worker programs, such as Express Entry, frequently fit the country’s labor market needs. Based on their CRS score—which evaluates important characteristics such language ability, job experience, occupation, age, and education—they are asked to apply for permanent residency. The candidates who have the highest cumulative rate of success are deemed by the IRCC to have the best chance of assimilating into the Canadian economy.
The IRCC developed this strategy in 2023 by introducing invitation rounds for selection based on categories. Rather than having a high CRS score overall, Express Entry candidates are selected in these draws based on particular characteristics like job experience. We do not currently have any data on the economic outcomes for these particular arrivals.
Conversely, the median wage of economic immigrants accepted under Provincial Nominee Program (PNP) streams other than Express Entry is typically lower. According to the research, one year following admission, the median job earnings among PNP cohorts varied from the mid-$40,000s to the low-$50,000s.
Additional scoring factors have minimal effect on income
The research emphasizes that while new components of an Express Entry application can affect median incomes, unless candidates obtained the highest possible scores in those areas, they do not substantially improve earnings two to three years after admission. The research shows that candidates who entered Canada in 2019 and completed three years or more of post-secondary education at a Canadian institution earned somewhat higher median job wages than those who did not.
On the other hand, the median incomes of those admitted in 2019 with a 1-2 year Canadian post-secondary credential and those without any post-secondary education in Canada were lower, at $51,000 and $61,100, respectively.
The pattern for newcomers with siblings in Canada was also evident: for those who arrived in 2019, the median wage two years after landing was $53,100 for those with a sibling who was a Canadian or permanent resident, compared to $61,200 for those without a sibling. Pre-arranged employment was the only other factor linked to higher median incomes, and the type of employment influenced income levels. For newcomers who arrived between 2017 and 2019, those with pre-arranged job offers in senior management roles earned median incomes exceeding $200,000.
In addition, individuals with prearranged occupations in other roles made more money than those without prearranged jobs. For example, the median income of those who arrived in 2018 and had a work offer in a “other” occupation was $84,500, whereas the median income of those who arrived without employment arrangements was $60,700.