Newcomers who move to Canada through an Express Entry-managed program typically experience a significant rise in their median employment earnings within the first five years of living in Canada.
This information comes from the 2023 Year-End Express Entry report. Immigration, Refugees and Citizenship Canada (IRCC) provided data indicating that the median income of newcomers who used an Express Entry-managed program surpasses that of individuals born in Canada.
The report looks at the median employment earnings of Express Entry candidates admitted between 2016 and 2021.
Earnings on the Rise
Candidates under Express Entry have continuously seen favorable long-term financial results since the program's inception in 2015.
For example, the 2023 report showed that median employment earnings for those accepted in 2016 were $58,400 in 2017, and by 2021 (five years following admission), they had climbed to $76,800. Additionally, newcomers who arrived in 2018 had a median income of $55,200 in their first year, which grew to $70,800 three years after landing. This demonstrates that wages for newcomers have risen rapidly.
Income Trends for Canadians and Newcomers
Over five years, the median employment income for Canadians saw only a slight increase, starting at $38,006 in 2017 and reaching $40,870 by 2021.
On the other hand, newcomers arriving through federal high-skilled worker programs, like those managed by Express Entry, tend to be well-aligned with Canada’s labor market needs. They are selected to apply for permanent residency based on their Comprehensive Ranking System (CRS) score, which evaluates crucial factors such as language proficiency, work experience, occupation, age, and education. IRCC views individuals with the highest CRS scores as having the greatest potential for successful economic integration in Canada.
In 2023, IRCC refined this strategy by launching category-based selection rounds. In these rounds, Express Entry candidates are invited primarily based on specific attributes, such as their work experience, rather than just their overall CRS score. Data regarding these newcomers' economic outcomes, however, is currently unavailable.
Economic Outcomes for PNP Immigrants
On the other hand, economic immigrants typically have lower median incomes when they join Canada through a Provincial Nominee Program (PNP) that is not associated with Express Entry. According to the report, the median employment earnings for PNP admission groups typically range from the mid-$40,000s to the low $50,000s one year after their arrival.
Impact of Additional Scoring Factors on Income
The report highlights that additional factors considered in an Express Entry application can influence median incomes. However, the data reveals that these additional scoring factors don't always lead to higher median incomes two to three years after arrival unless candidates had the maximum possible scores in these areas.
For instance, applicants admitted to Canada in 2019 with a Canadian post-secondary credential of three years or more had slightly higher median employment earnings compared to those without a Canadian educational credential.
On the other hand, those admitted in 2019 with a one- to two-year Canadian post-secondary credential earned a median income lower than those without any Canadian post-secondary education ($51,000 vs. $61,100).
Similarly, those with siblings in Canada had a median income of $53,100 two years after landing, compared to $61,200 for those without a Canadian or permanent resident sibling.
The only additional scoring factor that consistently resulted in higher median incomes was arranged employment. However, income levels varied depending on the type of job. For example, newcomers with pre-arranged senior management roles who arrived between 2017 and 2019 had median incomes exceeding $200,000 two years after landing.
Those with pre-arranged employment in other roles also had higher median incomes than those without such arrangements. For example, individuals who arrived in 2018 with an "other" type of job offer had median incomes of $84,500, compared to $60,700 for those without arranged employment.
Understanding Express Entry
Canada's online method for processing skilled worker applications for permanent residency is called Express Entry. Launched in 2015, it streamlines the immigration process and helps Canada select candidates who can contribute to its economy.
How Express Entry Operates:
1. Creating an Online Profile:
Candidates start by setting up an online profile and sharing details about their skills, work experience, education, and language abilities.
2. Comprehensive Ranking System (CRS):
Candidates obtain a score based on the Comprehensive Ranking System (CRS) after submitting their profile. Age, education, work experience, and language proficiency are among the variables taken into account by the CRS. Having a Canadian degree, a Canadian sibling, or a job offer all earn you extra points.
3. Entering the Candidate Pool:
Candidates with completed profiles are placed in a pool along with others. Those with the highest scores are invited to apply for permanent residency during regular draws conducted by Immigration, Refugees, and Citizenship Canada (IRCC).
4. Receiving an Invitation to Apply (ITA):
Candidates who receive an Invitation to Apply (ITA) have 60 days to submit a complete application along with the necessary documents.
5. Application Processing:
IRCC reviews the application and usually gives a decision within six months. If approved, the candidate receives permanent residency and can move to Canada.
Programs Managed by Express Entry:
Express Entry handles applications for three federal programs:
• Federal Skilled Worker Program (FSWP):
This is for skilled workers with foreign work experience who meet specific criteria.
• Federal Skilled Trades Program (FSTP):
This program is for people with experience and qualifications in specific trades.
• Canadian Experience Class (CEC):
This is for individuals who have gained skilled work experience in Canada with a temporary work permit.
Some Provincial Nominee Programs (PNPs) are also connected to Express Entry. These programs allow provinces to nominate candidates who meet their local labor market needs.
Express Entry is a popular choice for skilled immigrants because it is efficient and focuses on selecting people who can succeed in Canada.
