Immigrant economic integration is vital for Canadaโs social and financial stability, with the median entry wage serving as a key indicator of success.
The median entry wage represents the midpoint wage earned by new immigrants one year after arriving in Canada.
According to the 2023 Longitudinal Immigration Database (IMDB), the median entry wage for immigrants increased by 6.7% between 2021 and 2022, reaching $42,900.
This growth stands out against a 1.6% decline in the real median wage for Canadian workers.
Wages for immigrants vary based on admission category, pre-arrival work experience, gender, and country of origin.
Median Entry Wages in 2022
View this post on Instagram
The trajectory of immigrant wages has been shaped by the COVID-19 pandemic and global economic shifts. In 2019, the median entry wage for immigrants admitted the previous year stood at $35,500, but the economic slowdown caused by the pandemic led to a drop to $33,100 in 2020.
However, recovery was swift, with wages rebounding to $40,200 in 2021 and increasing further to $42,900 in 2022.
This 6.7% increase aligns with a 10-year trend (2013-2022), where median wages have grown by an annual average of 6.6%. Comparatively, the real median wage for Canadian workers fell to $45,380 in 2022. This divergence highlights the resilience of Canadaโs immigrant workforce.
Economic Principal Applicants Drive Wage Trends
Economic principal applicants, chosen for their ability to contribute to Canadaโs economy, typically earn the highest wages. In 2022, their median entry wage was $52,400, a 4.2% decline from $54,700 in 2021 but still significantly higher than pre-pandemic levels.
One major contributor to this trend is pre-admission work experience. Immigrants with Canadian work experience before arrival often transition more quickly into the workforce.
For instance, Canadian Experience Class (CEC) applicants saw their wages drop from $68,200 in 2021 to $56,400 in 2022, marking a 17.4% decrease. This shift can be partly attributed to the surge in CEC admissions, which rose from 25,000 in 2020 to 130,000 in 2021, bringing in a broader and more diverse pool of candidates.
Impact of Pre-Admission Work Experience
Pre-arrival work experience is a significant determinant of wage outcomes. In 2022:
Interestingly, asylum claimants saw their median entry wage increase by 20.1%, reaching $31,000, indicating a positive shift for this group despite economic challenges.
Wage Variations by Admission Category
Wage outcomes also differ based on immigration categories:
These figures emphasize that while economic programs yield higher wages, other categories, such as refugees and family-sponsored immigrants, are also showing promising gains.
Role of Immigrant Country of Birth
The IMDB data tracks wage trends over time by country of birth. For immigrants admitted in 2012, the median wage grew by 74.1%, rising from $25,900 in 2013 to $45,100 in 2022.
Iranian immigrants surpassed Filipino immigrants to lead the wage rankings, showcasing shifts in education levels, job sectors, and career pathways.
Narrowing the Gender Wage Gap
While wage disparities between men and women persist, the gap is shrinking. In 2022:
- Menโs entry wages rose 3.8%, from $47,000 to $48,800.
- Womenโs entry wages jumped 13.2%, from $32,600 to $36,900.
This progress reduced the gender wage gap from 36.7% in 2013 to 24.4% in 2022. Over a decade, womenโs wages grew by an impressive 93.4%, outpacing menโs growth of 69.6%.
The Bottom Line
The 2023 Longitudinal Immigration Database highlights positive wage growth among Canadaโs immigrant population, with the median entry wage increasing 6.7% in 2022. While economic principal applicants continue to lead in earnings, other categories, including refugees and family-sponsored immigrants, are making strong strides.
Pre-admission work experience remains a key driver of success, enabling quicker integration into Canadaโs labor market. Furthermore, the narrowing gender wage gap underscores the growing economic contributions of immigrant women.
Despite challenges, such as wage declines among Canadian Experience Class applicants and those without pre-arrival experience, Canadaโs approach to immigration demonstrates resilience and opportunity. Policymakers can use this data to further refine programs and promote economic success for newcomers.
With the next IMDB report scheduled for release on December 19, 2024, ongoing insights will provide a clearer picture of immigrant wage trends and labor market integration.
