IRCC Deputy Minister Transition Binder 2026 - Immigrant Outcomes
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Context
This product provides insight on immigrants’ economic and social outcomes, including trends and areas for improvement. It also provides some highlighted statistics on immigrants and the housing market.
Impacts of Immigration on Canada
Demographic
Immigration represents nearly 100% of population growth in Canada. It is essential for increasing Canada’s working age population (aged 15 to 64 years old). Without immigration, Canada's population is projected to decrease over the next 20 years as the population ages. Nonetheless, immigration alone is not a long-term solution to population aging in Canada.
Economic
Immigrants make a larger contribution to the supply of highly skilled workers in the fields of Science, Technology, Engineering, and Math (STEM) than their Canadian-born counterparts, 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 population, particularly among longer-term immigrants, men 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 admitted 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.
Economic Outcomes
Key Takeaways
While immigrant men outperform their Canadian-born counterparts in employment and participation rates, core-aged immigrant women continue to face significant labour market challenges, with lower employment rates and higher unemployment compared to Canadian-born women.
The median entry earnings for new immigrants fell in 2023 mainly because earnings in 2021 and 2022 were unusually high. Those years saw a higher proportion of new immigrants drawn from temporary residents already residing in Canada due to pandemic travel restrictions. Since many of them had Canadian work experience and/or education, they entered the labour market with stronger foundations, temporarily pushing up median entry wages.
The only exception was the Canadian Experience Class (CEC), which saw a modest increase, and their earnings still remain the highest among all admission categories.
Immigrant Outcomes in the Canadian Labour MarketFootnote 1
Immigrants aged 25 to 54 (i.e., core labour force age) participate in the labour market at a modestly lower rate than the Canadian-born population, and report slightly lower employment rates.
Immigrant men in the same age cohort reported moderately higher participation and employment rates than their native-born counterparts; whereas immigrant women reported substantially lower rates than their Canadian-born peers.
The median entry earnings (the first full year of wages, salaries and commissions since admission) for new immigrants decreased by 10.6% from 2022 to 2023, the largest decline since 1991.
The median entry earnings (i.e., one year after admission) of immigrants admitted in 2022 was lower ($39,800), compared to entry earnings of those admitted in 2021 ($44,500).
In 2021, Immigration, Refugees and Citizenship Canada (IRCC) specifically invited Express Entry candidates, who were more likely to be physically located in Canada and therefore less impacted by pandemic-related border restrictions, to apply for permanent residency. This was done, in part, by increasing the number of immigrants admitted through the CEC program, the category with the highest median entry wage. Specifically, the share of immigrants aged 15 years and older admitted as CEC principal applicants increased from 12% in 2020 to 27% in 2021. This change contributed to the growth of the entry wage of all new immigrants in 2022.
With the removal of border restrictions in 2022, CEC principal applicants were less targeted, and their share declined to 5% in that year. This, in addition to the other factors at play during the post-pandemic period, contributed to the overall reduction in the entry wages of new immigrants in 2023.
Median entry earnings by immigration category and admissions cohort (in 2023 constant dollars).
Cohort
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Tax Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Total, immigrant admission category
27,400
30,400
31,000
31,300
35,400
36,800
34,400
41,700
44,500
39,800
Immigrants sponsored by family
21,100
22,900
23,800
24,800
28,300
28,300
24,400
28,600
31,600
30,300
Economic Immigrant, principal applicant
38,400
41,300
42,300
45,700
48,500
50,300
48,800
56,900
54,500
51,500
Skilled worker and skilled trades, principal applicant
31,300
32,100
38,600
45,500
43,300
48,500
45,400
54,100
58,600
56,000
Canadian experience class, principal applicant
64,000
65,500
64,400
63,200
65,900
68,400
68,100
71,000
58,600
60,600
Provincial/territorial nominee, principal applicant
Economic principal applicants’ employment earnings were well above the median for all immigrants and surpassed the Canadian median shortly after admission regardless of the time spent in the country.
Among family sponsored immigrants and refugees, employment earnings were consistently lower than the median for all immigrants and remained below the Canadian median 10 years after admission.
CEC immigrants consistently have higher median employment earnings than both Federal Skilled Worker and Provincial Nominee Program principal applicants, regardless of years after admission.
Median employment earnings by immigration category and years since landing in tax year 2023 (in constant dollars)
1
2
3
4
5
6
7
8
9
10
Total, immigrant admission category
39,800
49,100
50,500
49,400
50,400
48,500
46,400
48,100
48,600
47,900
Immigrants sponsored by family
30,300
35,900
35,700
37,000
39,100
39,400
40,300
40,500
41,200
42,100
Economic Immigrant, principal applicant
51,500
60,000
69,900
68,900
72,000
70,600
69,900
67,600
65,500
67,400
Skilled worker and skilled trades, principal applicant
56,000
64,500
73,100
76,400
81,400
77,500
80,800
81,600
72,700
72,300
Canadian experience class, principal applicant
60,600
63,900
82,200
84,400
89,500
88,900
82,200
85,500
90,300
92,100
Provincial/territorial nominee, principal applicant
47,700
54,700
59,100
58,600
64,100
66,900
64,500
63,800
64,100
66,100
Economic Immigrant, spouse and dependent
34,400
41,000
44,500
43,900
42,600
40,600
39,800
40,100
39,200
38,500
Refugee
25,900
30,600
29,800
30,200
30,100
30,000
28,100
31,900
34,400
35,000
Canada total
47,600
47,600
47,600
47,600
47,600
47,600
47,600
47,600
47,600
47,600
The Canadian median includes the immigrant population.
Among all immigrants, the incidence of social assistance is generally stable at 6%, below the Canadian average of 8%.
For refugees, the initially high rates of social assistance decrease over time, as economic outcomes improve.
Unlike other immigrant categories, the incidence of social assistance among sponsored family class immigrants was higher among cohorts who had been in Canada longer; this is likely due to sponsorship agreements, which typically end after 10 years.
Incidence of social assistance by immigration category and years since admission (tax year 2023)
Admission category
1 year since admission
5 years since admission
10 years since admission
Canadian average
Economic Immigrant, principal applicant
3
1
1.8
8.1
Economic Immigrant, spouse and dependent
4.5
1.3
2.4
8.1
Immigrants sponsored by family
2.6
3.7
8.9
8.1
Refugee
40.9
26.4
23.4
8.1
Total, immigrant admission category
9.6
5.5
6.6
8.1
Social Outcomes
Key Takeaways
Immigrants in Canada demonstrate strong social integration through a high sense of belonging, greater trust in others, and a strong belief in shared values, with overall higher life satisfaction and greater confidence in institutions compared to Canadian-born individuals.
Immigrants in less dense urban centers experience stronger social bonds, with higher levels of neighborly support and familiarity, while immigrant women in mid-sized cities build the largest social networks, which grow over time in Canada.
While Canada’s citizenship rate has declined in recent years, it remains one of the highest among Organisation for Economic Co-operation and Development (OECD) countries.
Immigrant children in Canada often outperform their peers in university completion rates, yet disparities persist across different ethnic backgrounds. At the same time, immigrants face challenges in building local social networks, with those arriving during formative years experiencing the greatest difficulties in forming close friendships.
Immigrants and non-permanent residents play a crucial role in shaping Canada's housing market, with distinct needs across ownership and rental sectors. While immigrants drive demand for both owned homes and rentals, non-permanent residents, especially those on work permits, primarily influence the rental market.
Immigrants in Atlantic provinces and in Ontario reported the highest sense of belonging to Canada.
Immigrants in Alberta and British Columbia had a significantly lower likelihood of strong belonging compared to those in Ontario. This difference disappeared for Alberta after controlling for various demographic, economic, and regional factors; whereas, the difference remained for British Columbia.
Predicted probability of immigrants reporting a very strong sense of belonging to Canada by province of residence, 2020
Immigrants were more likely than Canadian-born to believe Canadians share core values.
Human rights were the most widely shared value among immigrants. Additionally, newcomers saw ethno-cultural diversity and respect for the law as more shared than Canadian-born.
Perceptions of shared values in Canadian society among immigrants and Canadian-born people.
Human Rights
Respect for the law
Gender Equality
Linguistic duality
Ethnic and cultural diversity
Respect for indigenous culture
13 years or older at arrival
70.1%
67.3%
55.9%
46.9%
51.5%
41.8%
0 to 12 years at arrival
56.5%
43.6%
30.5%
24.4%
32%
20.4%
Canadian-Born
54.9%
40.4%
30.3%
23.3%
24.4%
17.5%
Life Satisfaction and Trust
Generally, immigrants report higher levels of satisfaction towards their life compared to Canadian-born counterparts.
This gap in life satisfaction between immigrants and Canadian-born individuals is more pronounced among certain groups like Other Visible Minority, Chinese and Black populations.
Life satisfaction by population group and immigration status, 2020.
Immigrant
Canadian-Born
White
59%
55%
Black
56%
40%
South Asian
30%
47%
Chinese
56%
37%
Other visible minority
58%
40%
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.
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%
Confidence in Institutions
Immigrants, particularly recent immigrants, tend to have higher confidence in various institutions, compared to the Canadian-born.
Immigrants’ confidence in institutions tends to align more with the Canadian-born average as time spent in Canada increases.
Predicted percentage of having great confidence in Canadian public institutions, by generational status.
Police
Justice system and courts
Federal parliament
Canadian media
First generation
70.7%
66.1%
56.8%
46.9%
Second generation
64.4%
51%
40.4%
38.3%
Third generation or more (reference)
71%
54.9%
42.7%
41.7%
Social Connections and Networks
Immigrants in less dense urban centres experience stronger social connections, including higher levels of neighbourly favour exchange, altruism, and familiarity with neighbours.
Despite smaller networks, immigrants in these areas experience stronger social ties compared to those in larger urban centers.
Adjusted Social relations with neighbours by neighbourhood density, 2020
Knows many/most neighbours
1–5 neighbours available for favours
Exchanged a favour with a neighbour
“Very likely” a neighbour would return lost wallet
Sources: Statistics Canada, General Social Survey, 2020 and Census of Population, 2016
Immigrant women in mid-sized cities have larger social networks compared to those in larger or smaller cities, with network size improving over time in Canada.
Local Social connectionsFootnote * among immigrant and Canadian-born women by geographic size
Immigrant Women
Canadian-born Women
Montréal
17.4
16.5
Toronto
15.4
18.4
Vancouver
19.1
22.7
Medium-sized CMAs
18.4
22.4
Small CMAs
14.1
21.8
Outside CMAs
17.1
18.8
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%.
Citizenship take-up rate for immigrants admitted in Canada after 1980 with 3+ years since admission, 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%
Children of Immigrants
The children of immigrants, second generation (individuals born in Canada but have parents who are born abroad) and 1.5 generation (immigrants who arrive in Canada under the age of 15), complete university at a higher rate than their peers with Canadian-born parents (third generation or higher).
The educational attainment of the children of immigrants varies by visible minority status, with children of Black, Latin American and Southeast Asian backgrounds reporting lower university completion rates.
University completion rate (age 25-54), by generation status
Third generation or more
27%
Second generation
40%
1.5 generation
51%
Immigrants, on average, had fewer close friends in their local area, compared to the Canadian-born population.
This is mainly driven by smaller close-friend circles of those who arrived in Canada from stages of pre-adolescence through early adulthood.
Average number of close friends immigrants had in the local area, by age at arrival.
Canadian-born average
4.1
Total immigrants
3.8
0-5 years old
4.7
6-9 years old
3.9
10-12 years old
3.6
13-17 years old
3.2
18-24 years old
3.8
25-34 years old
3.6
35-54 years old
4.1
Special Report: Housing
Immigrants have higher housing needs compared to Canadian-born individuals, both in homeownership and rental markets.
Non-permanent residents, particularly those on work and permits, seek rental housing, while study permit holders have relatively lower rental demand.
Immigrants primarily contribute to the demand for owned single-detached homes and rental apartments, whereas non-permanent residents significantly drive demand for rental apartments, with minimal influence on homeownership trends.
Owned Units per 1,000 population.
Canadian-born
Immigrants
NPRs
Single-detached
205
182
16
Semi and row
27
54
6
Apartment
33
72
19
Rental Units per 1,000 population.
Canadian-born
Immigrants
NPRs
Single-detached
22
15
30
Semi and row
14
16
22
Apartment
88
119
262
Housing Suitability of International Students across Major Municipalities
[redacted]
Students from India face significantly higher unsuitable housing rates than other international and Canadian-born students. Housing suitability refers to whether a private household is living in suitable accommodations with enough bedrooms according to the National Occupancy Standard.
