Median Entry Wages for New Immigrants in Canada Continued to Rise in 2022

The economic integration of new immigrants in Canada has been marked by a significant rise in their median entry wages—defined as the median income earned by immigrants one year after gaining permanent residency. The latest data from the 2023 Longitudinal Immigration Database (IMDB) reveals a 6.7% increase in the median entry wage of new immigrants between 2021 and 2022, continuing a decade-long trend of steady growth. This rise occurred despite a 1.6% decline in the overall real median wage of Canadians during the same period.

Key Factors Driving the Growth

One of the major contributors to this upward trend is the growing proportion of immigrants with prior Canadian work experience. These individuals typically secure higher wages upon admission compared to those entering Canada without such experience. This report examines the economic outcomes of immigrants, analyzing variations by admission category, country of origin, gender, and pre-admission experience.

Fluctuations in Median Entry Wages

The median entry wage for immigrants admitted in 2022 stood at $42,900, up from $40,200 in 2021. Over the past decade, the annual growth in median wages has averaged 6.6%, a testament to the resilience of Canada’s immigration system. However, these figures are subject to economic fluctuations, as demonstrated during the COVID-19 pandemic when median wages dipped to $33,100 in 2020 before rebounding sharply.

In comparison, the overall median wage of Canadians was $45,380 in 2022, underscoring the economic strides made by newcomers. Economic principal applicants—immigrants selected for their ability to contribute to Canada’s workforce—consistently earned the highest wages among all categories, with a median entry wage of $52,400 in 2022.

The Canadian Experience Class: A Mixed Picture

Canadian Experience Class (CEC) principal applicants, chosen for their previous work experience in Canada, have historically earned high wages. However, their median entry wage fell by 17.4% in 2022 to $56,400, the lowest in a decade. This decline could be attributed to changes in the profile of immigrants admitted under this category, such as variations in education, language skills, or occupations. Nevertheless, the CEC category continues to lead other groups in terms of earnings.

Gender Wage Gap Narrows

Gender disparities in wages among new immigrants also showed notable improvements. In 2022, the median entry wage for women rose by 13.2% to $36,900, compared to a modest 3.8% increase for men. Consequently, the wage gap between men and women narrowed significantly, dropping from 36.7% a decade ago to 24.4% in 2022. This progress is linked to the rising educational attainment and shifting occupational profiles of female immigrants.

Long-Term Trends: 10 Years of Wage Growth

The economic outcomes of immigrants improve significantly over time. For instance, those admitted in 2012 saw their median wage grow by 74.1% over a decade, from $25,900 in 2013 to $45,100 in 2022. Wage trajectories varied by country of origin, with immigrants from Iran experiencing the fastest growth, surpassing their counterparts from countries like the Philippines, India, and China by 2022.

Admission Categories and Pre-Admission Experience

Immigrants’ pre-admission experiences play a critical role in shaping their economic outcomes. In 2022, individuals with prior Canadian work permits earned a median wage of $52,000, the highest among all groups. Conversely, those without any pre-admission experience saw their wages decline by 9.4% to $27,900. Refugees and family-sponsored immigrants, often admitted for non-economic reasons, also experienced significant wage growth, highlighting Canada’s inclusive immigration policies.

Future Insights

This analysis highlights the complexities of immigrant economic integration and the importance of tailored policies to maximize their contributions. A follow-up article on December 19, 2024, will delve into the mobility of immigrants across Canada, complementing recent population estimates set for release on December 17.

About the IMDB

The Longitudinal Immigration Database is a collaboration between Statistics Canada, Immigration, Refugees and Citizenship Canada (IRCC), and the provinces. It combines immigration records with tax data, offering comprehensive insights into the economic and social outcomes of immigrants over time.