IRCC, Deputy Minister, Transition Binder, 2024 - Immigrant Outcomes
Introduction to IRCC
January 2024
Outline
- This deck will provide an overview of the following themes:
- Economic outcomes of immigrants:
- Labour force indicators
- Average entry employment earnings
- Average employment earnings over time
- Social assistance
- Social outcomes of immigrants:
- Civic engagement
- Sense of belonging
- Citizenship take-up rate
- Outcomes of the children of immigrants:
- University completion rates
- Impact of the COVID-19 pandemic
- Unemployment rates between immigrants and the Canadian-born
- Economic outcomes of immigrants:
Canada received a record inflow of over 400 000 new permanent migrants, more than double the inflow in 2020. This makes Canada the third largest receiving country after the United States and Germany.
OECD, International Migration Outlook 2022
Key Takeaways
- For the first time in a decade, median entry-year earnings for immigrants decreased, likely due to the COVID-19 pandemic. (Slide 5)
- Though immigrants and refugees generally appear to integrate well based on voting rates, sense of belonging, and citizenship take-up, there is some variability based on background. (Slides 8 & 9)
- Children of immigrants and refugees continue to outperform their peers with Canadian-born parents in terms of educational attainment. (Slide 11)
- The COVID-19 pandemic had particularly adverse impacts for the labour market performance of immigrants. However, by the start of 2023, labour market outcomes for immigrants matched those of Canadian-born workers, with the exception of Very Recent Immigrants. (Slide 13)
- Immigration, Refugees and Citizenship Canada (IRCC) will continue to report on the social and economic outcomes of immigrants.
Immigrant Outcomes in the Canadian Labour Market
- Immigrants aged 25-54 (i.e. core labour force age) participate in the labour market at a modestly lower rate than the Canadian-born population, and also report slightly lower employment rates.
- Immigrant men in the same age cohort outperform their native counterparts, however immigrant women are reported to have lower rates to their Canadian peers.
- The unemployment rate for the immigrant cohort is higher than the Canadian-born average, particularly for women.
- Compared to the 2016 census, immigrant participation is marginally higher but employment rate is lower.
| Employment Rate, age 25-54 | |
|---|---|
| Canadian-born | 80 |
| Men+ | 82 |
| Women+ | 78 |
| Immigrants | 75.5 |
| Men+ | 82.8 |
| Women+ | 69.1 |
| Participation Rate, age 25-54 | |
|---|---|
| Canadian-born | 86.6 |
| Men+ | 88.9 |
| Women+ | 84.3 |
| Immigrants | 83.8 |
| Men+ | 90.2 |
| Women+ | 78.2 |
| Unemployment Rate, age 25-54 | |
|---|---|
| Canadian-born | 7.7 |
| Men+ | 7.8 |
| Women+ | 7.5 |
| Immigrants | 9.9 |
| Men+ | 8.2 |
| Women+ | 11.6 |
Source: 2021 Census Table: 98-10-0446-01
2020 Admission Year: Impact of COVID-19
- There was a sharp decrease in permanent resident admissions in 2020.
- COVID-19 travel restrictions meant new permanent residents in 2020 were disproportionately drawn from temporary residents already residing in Canada.
- This group is likely to have more Canadian work experience and a better understanding of the Canadian labour market than other new permanent residents - this typically results in higher wages and salaries.
Number of immigrant tax-filers in tax year 2021 by admission cohort year
| 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Total, immigrant admission category | 182,890 | 190,430 | 190,520 | 196,485 | 205,020 | 215,580 | 215,405 | 234,550 | 241,995 | 134,325 |
| Immigrants sponsored by family | 47,140 | 53,590 | 62,750 | 52,825 | 52,110 | 61,935 | 64,865 | 66,740 | 69,425 | 37,780 |
| Economic Immigrant, principal applicant | 51,685 | 56,525 | 54,890 | 68,110 | 68,080 | 61,760 | 73,000 | 84,585 | 89,330 | 52,880 |
| Skilled worker and skilled trades, principal applicant | 28,245 | 31,155 | 28,060 | 24,260 | 27,235 | 26,865 | 22,410 | 32,085 | 34,345 | 17,325 |
| Canadian experience class, principal applicant | 3,185 | 4,770 | 3,645 | 12,090 | 9,495 | 8,360 | 18,930 | 16,825 | 19,295 | 16,540 |
| Provincial/territorial nominee, principal applicant | 13,145 | 15,005 | 16,625 | 18,690 | 18,975 | 18,545 | 21,430 | 27,655 | 30,740 | 17,545 |
| Business programs, principal applicant | 2,285 | 2,040 | 1,890 | 1,785 | 1,470 | 1,285 | 1,190 | 1,120 | 965 | 360 |
| Caregiver, principal applicant | 4,825 | 3,560 | 4,670 | 11,285 | 10,900 | 6,705 | 9,045 | 6,900 | 3,980 | 1,105 |
| Economic Immigrant, spouse and dependent | 59,270 | 59,320 | 51,745 | 54,620 | 58,320 | 50,795 | 46,330 | 49,730 | 47,845 | 24,485 |
| Refugee | 22,075 | 17,885 | 18,520 | 18,245 | 23,360 | 38,310 | 28,545 | 30,555 | 31,920 | 16,720 |
Median wage of immigrants admitted by pre-admission experience, tax years 2012 to 2021
| With study permit(s) only | With work permit(s) only | With work and study permits | With asylum claim | Without pre-admission experience | |
|---|---|---|---|---|---|
| 2012 | 12,200 | 38,600 | 36,100 | 21,800 | 19,800 |
| 2013 | 14,700 | 41,900 | 41,500 | 23,900 | 23,000 |
| 2014 | 16,200 | 44,200 | 44,800 | 25,400 | 25,100 |
| 2015 | 19,600 | 45,900 | 48,900 | 27,000 | 27,300 |
| 2016 | 20,200 | 46,500 | 52,100 | 28,200 | 28,300 |
| 2017 | 24,400 | 48,700 | 56,300 | 29,700 | 30,400 |
| 2018 | 27,800 | 50,100 | 59,300 | 32,000 | 32,900 |
| 2019 | 30,200 | 51,500 | 62,500 | 32,700 | 34,400 |
| 2020 | 30,100 | 51,800 | 64,800 | 32,100 | 34,000 |
| 2021 | 36,800 | 54,700 | 69,300 | 37,000 | 37,700 |
Median Entry-year Earnings
- Entry-year median earnings* for tax year 2021 was the highest on record for all immigration categories in the past ten years. This is due to the higher share of new Canadians with existing work and study experience.
- In tax year 2021, the median entry-year earnings of immigrants admitted in 2020 was $37,700, compared to $31,000 for those admitted in 2019.
Median entry-year earnings by immigration category and admissions cohort (in 2021 constant dollars)
| Admission Category / Admission Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Economic Immigrant, principal applicant | 28,700 | 30,800 | 33,000 | 34,600 | 37,200 | 38,100 | 41,200 | 43,800 | 45,400 | 43,900 | 51,200 |
| Skilled worker and skilled trades, principal applicant | 25,900 | 26,300 | 26,400 | 28,200 | 28,900 | 34,700 | 41,000 | 39,100 | 43,800 | 41,000 | 48,800 |
| Canadian experience class, principal applicant | 51,900 | 54,200 | 54,600 | 57,400 | 59,000 | 57,900 | 56,900 | 59,400 | 61,500 | 61,300 | 64,000 |
| Provincial/territorial nominee, principal applicant | 38,400 | 39,100 | 40,200 | 42,400 | 41,400 | 40,800 | 41,900 | 43,300 | 43,900 | 40,100 | 44,600 |
| Economic Immigrant, spouse and dependent | 17,500 | 19,800 | 20,100 | 20,300 | 22,000 | 23,900 | 24,700 | 26,900 | 28,700 | 26,100 | 32,400 |
| Immigrants sponsored by family | 17,900 | 19,000 | 18,900 | 19,000 | 20,600 | 21,500 | 22,300 | 25,500 | 25,600 | 22,000 | 25,800 |
| Refugee | 16,500 | 17,600 | 18,700 | 18,700 | 18,300 | 16,800 | 16,500 | 19,400 | 20,000 | 17,700 | 20,800 |
| Total, immigrant admission category | 21,900 | 23,300 | 24,200 | 24,700 | 27,400 | 28,000 | 28,200 | 31,900 | 33,200 | 31,000 | 37,700 |
Source: Longitudinal Immigration Database (IMDB), 2022
Note: IMDB analysis includes immigrant tax-filers who are 15 and over.
* entry-year earnings refer to the first full year of wages, salaries & commissions since year of admission
Immigrant Earnings Over Time
- Economic principal applicants’ employment earnings were well above the median for all immigrants, and surpassed the Canadian average shortly after landing.
- Among refugees, employment earnings were consistently lower than the average for all immigrants, and remained below the Canadian average 10 years after landing.
2021 median wages, salaries & commissions by immigration category and admissions cohort year
| Admission Category / Admission Year | Economic Immigrant, principal applicant | Skilled worker and skilled trades, principal applicant | Canadian experience class, principal applicant | Provincial/territorial nominee, principal applicant | Economic Immigrant, spouse and dependent | Immigrants sponsored by family | Refugee | Total, catégorie d’admission des immigrants | Economic Immigrant, principal applicant |
|---|---|---|---|---|---|---|---|---|---|
| 2011 | 57,900 | 62,600 | 80,900 | 55,300 | 32,600 | 37,000 | 30,400 | 41,100 | 57,900 |
| 2012 | 58,500 | 61,600 | 79,500 | 55,100 | 32,300 | 35,400 | 29,500 | 41,100 | 58,500 |
| 2013 | 57,500 | 60,000 | 80,800 | 58,100 | 31,100 | 34,400 | 28,200 | 40,300 | 57,500 |
| 2014 | 55,900 | 59,600 | 78,300 | 55,700 | 31,900 | 34,100 | 27,000 | 41,100 | 55,900 |
| 2015 | 57,200 | 65,900 | 75,000 | 55,200 | 32,700 | 33,500 | 24,600 | 40,500 | 57,200 |
| 2016 | 58,200 | 65,200 | 70,300 | 55,200 | 32,300 | 32,300 | 21,100 | 38,600 | 58,200 |
| 2017 | 58,200 | 60,600 | 74,700 | 55,700 | 32,900 | 31,800 | 23,000 | 40,300 | 58,200 |
| 2018 | 56,900 | 61,000 | 73,000 | 52,000 | 34,000 | 30,800 | 22,900 | 40,600 | 56,900 |
| 2019 | 51,900 | 52,600 | 68,200 | 46,400 | 33,200 | 28,900 | 22,900 | 38,200 | 51,900 |
| 2020 | 51,200 | 48,800 | 64,000 | 44,600 | 32,400 | 25,800 | 20,800 | 37,700 | 51,200 |
Source: Longitudinal Immigration Database (IMDB), 2022; Statistics Canada Table: 11-10-0239-01
* Canadian average includes immigrant population
Note: IMDB analysis includes immigrant tax-filers who are 15 and over.
Income Dynamics of New Immigrants – PBO report
On January 12, 2024, the Parliamentary Budget Officer published a new report on the income dynamics of new immigrants.
Key Findings
- From 2014 to 2018, the median income of new immigrants who filed taxes, relative to all Canadian tax filers, rose from 55% to 78%.
- Trends (since the mid-2000s) include greater pre-arrival work experience in Canada, a shift from countries of origin to South Asia, and more family ties among new migrants.
- The increase in relative income is due to professional groups (e.g. engineers and scientists).
- A disproportionate share of the reduction in the income gap (from 45% in 2014 to 22% in 2018) is attributable to new immigrants living in Ontario.
- The lower relative performance of immigrants could be a drag on Canadian productivity growth.
- However, the recent increase in the median income of immigrants could help reduce this drag (potentially by up to 0.21 percentage points if the income gap were eliminated).
Use of Social Assistance
- The incidence of social assistance is generally stable for all immigrant categories, with the exception of the sponsored family class.
- The increase in the incidence of social assistance 10 years after admission for sponsored family is largely due to the expiration of the undertaking for parents/grandparents. In 2014, the undertaking period for parents/grandparents increased to 20 years (excluding Quebec) which will impact the trend in future.
- For tax year 2021, the five-year incidence rate coincides with the 2016 admission group. This is an outlier year which saw a substantial influx of Syrian refugees and a one-time spike in social assistance use.
Incidence Of Social Assistance By Immigration Category And Years Since Landing (Tax Year 2021)
| 1 year since landing | 5 years since landing | 10 years since landing | |
|---|---|---|---|
| Economic Immigrant, principal applicant | 1% | 1% | 2% |
| Economic Immigrant, spouse and dependent | 2% | 2% | 2% |
| Immigrants sponsored by family | 2% | 4% | 8% |
| Refugee | 34% | 38% | 25% |
| Total, immigrants admission category | 6% | 9% | 7% |
Source: Longitudinal Immigration Database (IMDB), 2022
* Canadian average includes immigrant population
Note: IMDB analysis includes immigrant tax-filers who are 15 and over.
Civic Engagement and Sense of Belonging 2020
Are immigrants civically engaged?
- Voter* turnout in the last federal election in 2019 is higher among Canadian-born than among immigrants, regardless of ethnic group, But higher among White and South Asian immigrants than the other ethnic groups of immigrants.
- *self-declared in the General Social Survey
Voted in Last Federal Election by Population Group and Immigration Status, 2020
| Immigrant | Canadian-Born | |
|---|---|---|
| White | 71% | 87% |
| Black | 58% | 70% |
| South Asian | 67% | 83% |
| Chinese | 58% | 78% |
| Other visible minority | 58% | 70% |
Do immigrants feel a strong sense of belonging to Canada?
- Overall Immigrants have a stronger sense of belonging to Canada than the Canadian-born. The only exception is within the Chinese population group where immigrants do not experience as strong a sense of belonging as the Canadian-born.
Sense of Belonging by Population Group and Immigration Status, 2020
| Immigrant | Canadian-Born | |
|---|---|---|
| White | 58% | 48% |
| Black | 67% | 35% |
| South Asian | 69% | 57% |
| Chinese | 33% | 37% |
| Other visible minority | 61% | 42% |
Source: 2020 General Social Survey
Life Satisfaction and Trust
Are immigrants satisfied with life?
- Generally speaking immigrants report higher levels of satisfaction towards their life compared to Canadian born.
- However, there is variation among population groups.
Life Satisfaction by Population Group and Immigration Status, 2020
| Immigrant | Canadian-Born | |
|---|---|---|
| White | 59% | 55% |
| Black | 56% | 40% |
| South Asian | 60% | 47% |
| Chinese | 56% | 37% |
| Other visible minority | 58% | 40% |
How much trust do immigrants generally feel towards others?
- Across all population groups, immigrants are more likely to express generalized trust in others than the Canadian-born.
- However, regardless of immigrant status, people in the Black and Other Visible Minority population groups report lower levels of trust than the overall Canadian-born average.
Generalized Trust in Others by Population group and Immigration Status, 2020
| Immigrant | Canadian-Born | |
|---|---|---|
| White | 63% | 55% |
| Black | 38% | 29% |
| South Asian | 63% | 45% |
| Chinese | 76% | 66% |
| Other visible minority | 51% | 43% |
Citizenship Take-up Rate
- Canada’s citizenship rate is among the highest in all OECD countries, at 80.7% for all “eligible” immigrants.
- Refugees report the highest citizenship take-up rate of all immigrants, at 83.2%.
- In recent years, the citizenship take-up rate has declined among certain immigrants (e.g. those with lower official language skills, less education, and lower income).
- Covid-19 pandemic and recent policy changes such as an increase in citizenship fees may have contributed to this decline.
Citizenship take-up rate for immigrants who landed in Canada after 1980 with 3+ years since landing, by immigration category, 2021
| Total immigrants | 77.2% |
|---|---|
| Economic class | 77.8% |
| Economic PA | 76.9% |
| Economic SD | 78.4% |
| Family class | 73.1% |
| Refugee | 83.2% |
Source: 2021 Census
Children of Immigrants
- The children of immigrants (1.5 generation* and 2nd generation) complete university at a higher rate than their peers with Canadian-born parents (3rd generation or higher).
- The educational attainment of the children of immigrants vary by visible minority status, with children of Black, Latin American and Southeast Asian backgrounds reporting lower university completion rates.
* 1.5 generation refers to immigrants who arrive in Canada under the age of 15
University completion rate (age 25-54), by generation status
| Third generation or more | 27% |
|---|---|
| Second generation | 40% |
| 1.5 generation | 51% |
Source: 2021 Census
Impacts of Immigration on Canada
Demographic
- Immigration is essential for increasing Canada’s working age population (aged 15 to 64 years old). Without it, Canada's population is projected to decrease over the next 20 years as the population ages. Nonetheless, immigration is not a long-term solution to population aging in Canada.
Economic
- Immigrants contribute disproportionately to the supply of highly-skilled workers in the fields of Science, Technology, Engineering, and Math (STEM), promoting productivity and innovation in Canada.
- Although immigrants account for 23% of the Canadian population, approximately 50% of all STEM degree holders in Canada are immigrants.
- Immigration has fueled entrepreneurship and consequently, job creation in Canada.
- Immigrants are more likely to be business owners than the Canadian-born, particularly among longer-term immigrants, males of prime working age (those aged 35 to 54 years), and from English-speaking countries and Western Europe.
- Economic immigrants are more likely to own firms in knowledge-based industries, while refugees and family class immigrants tend to own firms in traditional industries.
Fiscal
- Immigrants who landed after 1980 have positive net direct fiscal contributions. Economic principal applicants make higher net direct fiscal contributions than other immigrants and Canadians.
- Although refugees and family class immigrants have net direct fiscal contributions that are consistently below the Canadian average, their contribution grows over time.
Impact of COVID-19 – Three Years Later
- The labour market contraction, caused by the pandemic in early 2020, resulted in increased unemployment rates for both immigrants and the Canadian-born. Nonetheless, data from the Labour Force Survey indicated that ‘Very recent immigrants’ (those who had been in Canada for less than five years), ‘Recent immigrants’ (those who had been in Canada between five and ten years), and ‘Established immigrants’ (those who had been in Canada for more than ten years) reported unemployment rates that were higher than the Canadian-born population.
- Since January 2021, unemployment and employment rates improved significantly for all groups, although “Very Recent immigrants’ experienced a much slower progression.
- By the end of the first quarter of 2023, immigrants (with the exception of the ‘Very recent’ cohort) reported unemployment and employment rates that were comparable to the Canadian-born population.
Unemployment rate among immigrants and Canadian-born, aged 25-54
| Jan.20 | Mar 20 | May 20 | Jul. 20 | Sep. 20 | Jan. 21 | Mar. 21 | Mai 21 | Jul. 21 | Sep. 21 | Jan. 22 | Mar. 22 | Mai 22 | Jul. 22 | Sep. 22 | Jan. 23 | Mar. 23 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Very Recent immigrants | 10% | 10% | 16% | 17% | 13% | 10% | 10% | 10% | 9% | 8% | 8% | 8% | 8% | 7% | 8% | 8% | 8% |
| Establised immigrants | 5% | 7% | 13% | 13% | 10% | 9% | 10% | 9% | 10% | 10% | 6% | 6% | 5% | 5% | 5% | 4% | 5% |
| Recent immigrants | 5% | 6% | 11% | 11% | 9% | 9% | 9% | 8% | 7% | 7% | 5% | 5% | 5% | 5% | 5% | 4% | 4% |
| Born in Canada | 4% | 5% | 9% | 9% | 7% | 6% | 7% | 6% | 6% | 6% | 4% | 5% | 4% | 4% | 4% | 4% | 4% |
Employment rate among immigrants and Canadian-born, aged 25-54
| Jan.20 | Mar 20 | May 20 | Jul. 20 | Sep. 20 | Jan. 21 | Mar. 21 | Mai 21 | Jul. 21 | Sep. 21 | Jan. 22 | Mar. 22 | Mai 22 | Jul. 22 | Sep. 22 | Jan. 23 | Mar. 23 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Very Recent immigrants | 72% | 71% | 64% | 65% | 70% | 74% | 73% | 74% | 76% | 77% | 79% | 77% | 78% | 80% | 79% | 78% | 77% |
| Establised immigrants | 81% | 77% | 69% | 71% | 75% | 77% | 77% | 77% | 76% | 76% | 80% | 81% | 81% | 82% | 81% | 83% | 82% |
| Recent immigrants | 83% | 81% | 73% | 74% | 78% | 80% | 79% | 80% | 80% | 81% | 84% | 84% | 84% | 83% | 84% | 85% | 85% |
| Born in Canada | 85% | 84% | 78% | 80% | 82% | 83% | 83% | 83% | 84% | 84% | 85% | 85% | 87% | 87% | 86% | 86% | 86% |
Source: Labour Force Survey. Statistics Canada Table 14-10-0082-01