Express Entry Success: Newcomers See Rapid Income Growth in Canada

Express Entry newcomers see rapid income growth, surpassing Canadian-born workers, with skilled immigrants thriving in Canada's labor market, per 2023 IRCC report.

Express Entry Success: Newcomers See Rapid Income Growth in Canada

Express Entry Candidates Continue to Thrive Economically

Newcomers to Canada who immigrate through Express Entry-managed programs often experience significant income growth during their first five years in the country, according to the 2023 Year-End Express Entry report. Data from Immigration, Refugees and Citizenship Canada (IRCC) shows that the median income of newcomers via Express Entry programs surpasses that of Canadian-born individuals.

Rising Incomes for Express Entry Candidates

Since the launch of Express Entry in 2015, candidates have consistently achieved positive long-term economic outcomes. For instance, the report highlights that those admitted in 2016 had a median income of $58,400 in 2017, which increased to $76,800 by 2021—five years after arrival. Similarly, newcomers admitted in 2018 saw their median income grow from $55,200 in their first year to $70,800 three years later.

In contrast, the median income for Canadian-born workers remained relatively stable, starting at $38,006 in 2017 and rising modestly to $40,870 in 2021.

High-Skilled Workers Driving Economic Success

Newcomers arriving through federal high-skilled worker programs managed by Express Entry are well-equipped to meet Canada's labor market demands. These candidates are selected based on their Comprehensive Ranking System (CRS) scores, which assess key human capital attributes such as language proficiency, work experience, occupation, age, and education. Those with the highest CRS scores are viewed by IRCC as most likely to successfully integrate into the Canadian economy.

In 2023, IRCC refined the selection process further by introducing category-based selection rounds. These draws invite candidates based on specific attributes, such as work experience, rather than an overall high CRS score. Although data on the economic outcomes of these newcomers is not yet available, the results are eagerly anticipated.

Provincial Nominee Program Comparisons

Economic immigrants admitted through non-Express Entry-aligned streams of Provincial Nominee Programs (PNP) tend to have lower median wages. According to the report, median employment earnings for PNP admission cohorts ranged from the mid-$40,000s to the low $50,000s during the first year after admission.

Impact of Additional Scoring Factors on Income

While additional scoring factors in Express Entry applications can influence median incomes, the report shows that these factors do not always lead to higher earnings unless candidates score exceptionally high. For example, applicants admitted in 2019 with a three-year or more post-secondary credential from a Canadian institution earned slightly higher median incomes compared to those without Canadian post-secondary education.

Conversely, those with a one- to two-year post-secondary Canadian credential earned less than those with no Canadian education at all ($51,000 vs $61,100). Similarly, candidates with a sibling in Canada had lower median incomes two years after landing ($53,100) compared to those without a Canadian or permanent resident sibling ($61,200).

Arranged Employment Boosts Income

The report found that arranged employment is the only additional scoring factor that consistently results in higher median incomes. However, income levels vary depending on the type of employment. For example, candidates with a pre-arranged senior management role earned over $200,000 two years after landing, while those with other job offers had higher median incomes ($84,500) compared to those without pre-arranged employment ($60,700).