According to Statistics Canada, pre-landing Canadian work experience, proficiency in English or French, education and age were factors that influenced immigrants’ earnings in Canada.

Recently, Statistics Canada released its report “Immigration Selection Factors and Earnings of Top Applicants.” The report was an update on the 2015 research that helped guide the development of the Express Entry Comprehensive Ranking System (CRS); the primary way Immigration Refugees and Citizenship Canada (IRCC) assesses skilled foreign workers.

By analyzing the immigrant cohort from 2005-2015 (and their earnings from 2006-2017), the study looked at which characteristics of applicants (at the time of landing) were the most predictive of earnings in Canada, in the short term (one or two years). ), medium (five to six years) and long term (10 to 11 years).

The primary traits measured upon landing were:

  • Years of pre-landing Canadian work experience (compared to those with no experience);
  • Ability in official languages (English or French (Native speakers VS. Less proficiency);
  • Age—Younger (25-29 years) VS. Older (50-54 years); and
  • Education (Bachelor’s VS. Secondary school education)

What impacts short-term earnings for Immigrants in Canada?

According to the study, the main factors that affected the short-term earnings of immigrants included:

  • Pre-landing Canadian work experience, which was the strongest predictor of earnings in the first one to two years of immigration: each year of Canadian work experience equated to an 84% increase in earnings;
  • Language ability—those who had a mother tongue other than French or English, (but who spoke English) earned 29% less than those who had either French or English as a mother tongue; and
  • Education, showing those who had received a Bachelor’s degree (15 years of schooling) earned 12-24% more in the short-term.

What Impacts Medium-Term Earnings for Immigrants in Canada?

Per the results of the study, medium-term earnings were impacted by:

  • Pre-landing Canadian work experience—still the strongest predictor of earnings five plus years after landing: every one year of Canadian work experience equated to a 52-59% increase in earnings;
  • Language ability, as those with an official language as their mother tongue earned 42% more;
  • Age, which had a stronger correlation to earnings than in the short-term (i.e.: older immigrants earned 27-35% less than younger ones); and
  • Education; with Bachelor’s degree graduates earning 14-21% more.

What Impacts Long-Term Earnings for Immigrants in Canada?

  • Pre-landing Canadian work experience—even after a decade remaining the most impactful factor—weakened to a 45% increase for every one year of Canadian work experience;
  • Age at landing, revealing that younger immigrants earned 44% more than older ones, even 10-11 years after landing;
  • Official language ability, which reduced earnings of those less proficient in official languages by 35%; and
  • Education, which yielded a stronger effect: a 23% increase in earnings for those with a Bachelor’s degree.

To Summarize.

As the years in Canada for immigrants increased, the negative effects of the age of arrival increased; the positive effects of education on landing increased; and the positive effects of official language ability and pre-landing Canadian work experience gradually diminished.

The Hidden Variable: Pre-Landing Earnings

There was also another variable that Statistics Canada measured upon landing for immigrants in the cohort: pre-landing earnings.

When considered in the analysis, pre-landing earnings had a greater impact on short-, medium-, and long-term earnings than any other variable considered in the study. It was by far the most predictive factor of immigrant earnings success across the board.

The study concludes that this may be due to the fact that pre-landing earnings are associated with a number of factors, including education, pre-landing work experience and language ability.

The study further suggests that it may be the quality of pre-landing work experience (and especially pre-landing Canadian work experience) that appears to be the most predictive factor in an immigrant’s earnings in the short, medium and long term.

How Does This Study Influence Immigration?

This study is an update of the study published in 2015, which served as initial technical guidance for the Comprehensive Classification System, the classification system that the IRCC uses when evaluating economic candidates for immigration through Express Entry (the mainstream of economic immigration from the federal government).

Therefore, candidates seeking to apply through the Express Entry program system (including the Federal Skilled Worker Program (FSWP), Federal Skilled Trades Program (FSTP), and Canadian Experience Class (CEC) must understand the results of this study and the weight it places on certain immigrant traits (for example, the quality of Canadian work experience prior to landing and age).

CRS factors are also covered in this study (education, ability in the official language, etc.); and updates in the CRS weight given to these factors may follow the lines that this study has illuminated.

Skilled worker candidates eligible for Express Entry can also apply to the Provincial Nominee Program (PNP). The PNP is another economic immigration program where provinces and territories can nominate skilled workers for immigration to their provinces, allowing them to arrive and settle in Canada as permanent residents. Receiving a provincial nomination can also help with Express Entry success through Enhanced Provincial Nomination, giving candidates an additional 600 CRS points and virtually guaranteeing an Invitation to Apply (ITA).


By Published On: 6:27 amCategories: Work Visa, Student Visa Consultant0 Comments

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