A report by Statistics Canada showed that PNP applicants in three provinces have the highest earnings. The report found that there were major differences among provinces in the average earnings of provincial nominees throughout Canada. As of 2020, the highest annual earnings for PNP applicants within one or two years upon landing were noted in BC ($58,100), Alberta ($54,200), & Ontario ($59,600).
The lowest earnings for PNP applicants were recorded in Atlantic Canada, Saskatchewan, & Manitoba. The report attributes the gap to the local unemployment rate & the background characteristics of PNP principal applicants.
This was constant irrespective of the amount of time that had passed since landing. It concluded that this was partly caused by different economic conditions unique to each province and the background characteristics of each PNP applicant.
Background characteristics could include lower levels of education or little to no pre-landing Canadian work experience or education. Applicant’s official language skills also play a role.
As PNP applicants in three provinces have the highest earnings, there is more competition for high-skilled positions in these provinces where the unemployment rate is high. As a result, job seekers might need to accept positions with lower earnings. For instance, as per the latest data by Statistics Canada, the unemployment rate in Newfoundland & Labrador was 10% in November 2023. On the contrary, there was a 5.3% rate of unemployment in British Columbia.
Earnings Impacted By Immigration Pathway
The report also found significant differences among the earnings of economic immigrants depending on their immigration program/ pathway. Interestingly, the programs with the highest earnings after immigration have shifted from PNP applicants to those who move to Canada via FSWP or CEC of the Express Entry.
In addition, the report explained that pre-landing Canadian work, as well as study experience, educational attainment, source region, age, & language ability, played an integral part in explaining the difference in entry earnings between Federal Skilled Worker Program & Provincial Nominee Program immigrants. The most significant changes were seen after 2015, the year when IRCC first introduced the Express Entry system.
Immigrants who arrive in Canada via the Express Entry program require an ECA for any international education, formal language tests to meet the minimum requirements, & obtain high scores for other human capital factors within the CRS. In addition, the report found that CRS scores were higher among FSWP & CEC applicants than PNP applicants.
A high CRS score can indicate that an applicant has in-demand human capital attributes when they immigrate to Canada. This implies that they are better positioned to obtain skilled work with higher earnings than other applicants. The PNP does not use CRS & applicants in some PNP streams, like those targeted to entry-level & semi-skilled applicants. They might not require the same level of education/ work experience to immigrate.
Moreover, the CEC is one of the most significant Express Entry programs. IRCC data reveals that between January & September 2023, over 23,910 applicants obtained an ITA in the Express Entry draws. The same data demonstrated that ITAs were issued to over 15,855 Federal Skilled Worker Program applicants & around 13,655 PNP applicants.
What Is The PNP?
The Provincial Nominee Program is an economic immigration pathway to permanent residence that Canada’s provincial governments partially run. This is possible because, according to IRPA, immigration is a shared responsibility between federal & provincial governments.
The program enables provincial governments to select immigration applicants who are best suited to labor labor force needs by having in-demand human capital attributes. These applicants are nominated by the province, which makes an application for PR much stronger when submitted to IRCC.
Moreover, IRCC sets PNP immigration targets for every year in the annually released Immigration Levels Plan. This year, Canada will be admitting over 110,000 new permanent residents via the PNP & over 120,000 every year in both 2025 & 2026. IRCC further breaks down this target into the allocation of nominations for each province. The number of nominations a province obtains depends on factors like existing population, availability of settlement services, & labor force requirements.