Positive Economic Outcomes for Express Entry Candidates: A Closer Look

Express Entry continues to prove itself as a strong pathway for economic success for newcomers to Canada. According to the 2023 Year-End Express Entry report by Immigration, Refugees, and Citizenship Canada (IRCC), those who immigrate through an Express Entry-managed program see a significant boost in their median employment income within their first five years in Canada.

Rising Incomes for Newcomers

The report highlights that the median income for newcomers admitted through Express Entry is higher than that of Canadian-born citizens. The data examined the income trends for candidates admitted between 2016 and 2021, revealing a consistent climb in earnings.

For instance, newcomers admitted in 2016 earned a median income of $58,400 in 2017, which rose to $76,800 by 2021. Similarly, those who arrived in 2018 earned $55,200 in their first year, with their income increasing to $70,800 just three years later. This rapid growth underscores the financial benefits of the Express Entry system.

In contrast, the median employment income for Canadian-born individuals remained relatively stable, starting at $38,006 in 2017 and only reaching $40,870 by 2021.

Why Express Entry Works

Express Entry candidates typically possess skills and experience that are highly valued in Canada’s labor market. The Comprehensive Ranking System (CRS) used in Express Entry evaluates candidates based on their human capital attributes, including language ability, work experience, occupation, age, and education. Those with the highest CRS scores are seen as the most likely to succeed economically in Canada.

In 2023, IRCC introduced a new approach by conducting category-based selection rounds, inviting candidates based on specific attributes like work experience, rather than overall CRS scores. Although data on the economic outcomes of these newcomers isn't yet available, the move indicates a refined focus on matching immigrants to labor market needs.

Comparing Economic Immigrants

The report also compares the outcomes of Express Entry candidates with those admitted through non-Express Entry-aligned streams of the Provincial Nominee Program (PNP). The findings show that PNP immigrants tend to have lower median wages, ranging from the mid-$40,000s to the low $50,000s in their first year after admission.

Impact of Additional Scoring Factors

While certain factors in an Express Entry application can influence income, the report suggests that they don't always lead to higher earnings unless candidates have top scores in those areas. For example, newcomers with a three-year or more post-secondary credential from a Canadian institution had slightly higher median incomes, but those with a 1-2 year credential actually earned less than those with no Canadian education.

Interestingly, having a sibling in Canada didn't guarantee higher income. Newcomers admitted in 2019 with a sibling in Canada earned a median income of $53,100, while those without a sibling earned $61,200.

However, pre-arranged employment emerged as a strong predictor of higher income, especially for those in senior management roles, where median incomes exceeded $200,000 two years after landing. Even those with job offers in other occupations saw higher incomes compared to those without arranged employment.

Conclusion

The 2023 Express Entry report demonstrates the financial advantages of this immigration pathway. Newcomers not only integrate well into the Canadian economy but often exceed the income levels of Canadian-born citizens within a few years. As IRCC continues to refine its selection processes, Express Entry is likely to remain a key driver of Canada’s economic growth through skilled immigration.