IRCC Minister Transition Binder 2021: Immigrant Outcomes
Outline
- This deck will provide an overview of the following themes:
- Economic outcomes of immigrants, by immigration category:
- Labour force indicators
- Average entry employment earnings
- Average employment earnings over time
- Social assistance
- Social outcomes of immigrants, by immigration category:
- 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, by immigration category:
“Canada admits the largest number of skilled labour migrants in the OECD. Additionally, Canada also has the most carefully designed and longest-standing skilled migration system in the OECD. It is widely perceived as a benchmark for other countries, and its success is evidenced by good integration outcomes.”- OECD, Recruiting Immigrant Workers: Canada 2019 (2019)
Immigrant Outcomes in the Canadian Labour Market
- Economic principal applicants participate in the labour market at a higher rate than the Canadian-born population, and also report higher employment rates.
- The unemployment rate for economic principal applicants is on par with the Canadian-born average.
- As permanent residents who are not selected primarily for economic reasons, refugees and sponsored family class immigrants report lower participation and employment rates.
- In 2019, the labour market performance of immigrants in Canada was stronger than the average reported for other OECD countries.
Participation Rate - (age 25-54)
| Percentage of Participation | Canadian Average | |
|---|---|---|
| Sponsored family | 80% | 87% |
| Economic immigrants- spouses and dependants | 82% | 87% |
| Economic immigrants- principal applicants | 90% | 87% |
| Refugees | 78% | 87% |
| All immigrants | 83% | 87% |
Employment Rate - (age 25-54)
| Percentage of Participation | Canadian Average | |
|---|---|---|
| Sponsored family | 75% | 82% |
| Economic immigrants- spouses and dependants | 75% | 82% |
| Economic immigrants- principal applicants | 85% | 82% |
| Refugees | 72% | 82% |
| All immigrants | 77% | 82% |
Unemployment Rate - (age 25-54)
| Percentage of Participation | Canadian Average | |
|---|---|---|
| Sponsored family | 7% | 6% |
| Economic immigrants- spouses and dependants | 8% | 6% |
| Economic immigrants- principal applicants | 6% | 6% |
| Refugees | 9% | 6% |
| All immigrants | 7% | 6% |
Source: 2016 Census
How Much do Immigrants Earn Initially?
- Overall, the average entry employment earnings of immigrants in Canada has increased in recent years. Immigrants that landed in 2017 reported the highest entry employment earnings ($38,100) since 1990.
- Economic principal applicants’ entry earnings have grown significantly, from $31,900 in 1990 compared to $51,900 in 2017.
- Entry earnings in certain immigration categories (i.e. sponsored family, refugees) have been relatively stable since 1990.
Average entryFootnote 1 employment earnings by immigration category (in 2018 constant dollars)
| Economic immigrant, principal applicant | Skilled worker, principal applicant | Canadian experience class, principal applicant | Provincial/territorial nominee, principal applicant | Economic immigrant, spouse and dependant | Sponsored family | Refugee | All immigrants | |
|---|---|---|---|---|---|---|---|---|
| 1990 | $31,900 | $33,300 | N/A | N/A | $17,700 | $19,700 | $17,700 | $22,200 |
| 1991 | $30,200 | $31,400 | N/A | N/A | $17,600 | $18,700 | $18,800 | $21,700 |
| 1992 | $30,900 | $33,600 | N/A | N/A | $16,800 | $18,300 | $20,100 | $21,800 |
| 1993 | $30,700 | $35,100 | N/A | N/A | $16,800 | $18,200 | $18,800 | $21,700 |
| 1994 | $32,600 | $36,100 | N/A | N/A | $16,600 | $18,000 | $16,900 | $22,000 |
| 1995 | $32,200 | $35,000 | N/A | N/A | $16,400 | $17,800 | $16,800 | $22,200 |
| 1996 | $32,600 | $34,700 | N/A | N/A | $16,200 | $18,700 | $16,800 | $22,800 |
| 1997 | $35,300 | $36,900 | N/A | N/A | $16,800 | $19,900 | $17,000 | $24,700 |
| 1998 | $38,000 | $39,800 | N/A | N/A | $17,200 | $20,800 | $17,600 | $26,000 |
| 1999 | $40,900 | $42,700 | N/A | $35,700 | $18,200 | $21,600 | $18,200 | $27,800 |
| 2000 | $39,200 | $40,500 | N/A | $35,200 | $18,200 | $21,200 | $17,800 | $27,200 |
| 2001 | $32,800 | $33,400 | N/A | $41,700 | $16,600 | $20,600 | $17,900 | $24,300 |
| 2002 | $31,000 | $31,300 | N/A | $47,500 | $16,300 | $19,600 | $17,700 | $23,100 |
| 2003 | $31,100 | $31,000 | N/A | $44,700 | $16,200 | $20,400 | $18,800 | $23,000 |
| 2004 | $35,600 | $35,400 | N/A | $59,500 | $17,400 | $21,000 | $19,200 | $25,000 |
| 2005 | $35,200 | $35,100 | N/A | $56,200 | $17,500 | $22,000 | $20,800 | $25,200 |
| 2006 | $39,100 | $38,600 | N/A | $58,000 | $19,600 | $22,700 | $20,200 | $26,900 |
| 2007 | $42,400 | $42,400 | N/A | $54,700 | $20,800 | $23,700 | $20,200 | $28,800 |
| 2008 | $40,700 | $40,700 | N/A | $54,700 | $20,700 | $22,600 | $18,800 | $28,500 |
| 2009 | $39,700 | $36,500 | $67,600 | $52,800 | $20,700 | $22,100 | $18,800 | $28,200 |
| 2010 | $38,900 | $35,500 | $80,600 | $49,200 | $21,100 | $22,300 | $19,900 | $28,800 |
| 2011 | $39,900 | $34,200 | $69,600 | $48,400 | $22,600 | $23,400 | $20,100 | $29,500 |
| 2012 | $42,200 | $35,200 | $69,600 | $48,400 | $23,400 | $23,700 | $21,600 | $31,000 |
| 2013 | $43,300 | $36,600 | $67,900 | $51,300 | $23,900 | $24,000 | $21,500 | $31,500 |
| 2014 | $47,300 | $39,300 | $71,100 | $50,300 | $25,200 | $25,000 | $21,100 | $35,000 |
| 2015 | $46,400 | $40,800 | $72,600 | $48,000 | $25,600 | $25,100 | $19,200 | $34,000 |
| 2016 | $49,700 | $49,100 | $70,100 | $48,200 | $27,000 | $26,300 | $18,800 | $34,500 |
| 2017 | $51,900 | $46,800 | $69,900 | $48,700 | $29,400 | $28,500 | $21,100 | $38,100 |
Source: Longitudinal Immigration Database (IMDB), 2018
Note: IMDB analysis includes immigrant tax filers who are 15 and over.
Employment Earnings over Time
- Economic principal applicants’ employment earnings were well above the average 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 15 years after landing.
Average employment earnings by immigration category and years since landing (tax year 2018)
| Years since landing | Economic immigrant, principal applicant | Skilled worker, principal applicant | Canadian experience class, principal applicant | Provincial/territorial nominee, principal applicant | Economic immigrant, spouse and dependant | Sponsored family | Refugee | All immigrants | Canadian averageFootnote 2 (2018 constant dollar) |
|---|---|---|---|---|---|---|---|---|---|
| 1 | $51,900 | $46,800 | $69,900 | $48,700 | $29,400 | $28,500 | $21,100 | $38,100 | $47,965 |
| 2 | $54,600 | $55,600 | $73,900 | $52,400 | $30,400 | $30,300 | $22,200 | $38,300 | $47,965 |
| 3 | $55,000 | $54,600 | $79,900 | $54,400 | $30,600 | $31,200 | $24,000 | $40,100 | $47,965 |
| 4 | $55,800 | $52,400 | $80,200 | $56,500 | $31,100 | $32,200 | $25,900 | $41,300 | $47,965 |
| 5 | $55,600 | $53,300 | $81,200 | $60,100 | $30,900 | $33,300 | $27,500 | $40,200 | $47,965 |
| 6 | $57,400 | $55,600 | $84,100 | $58,100 | $32,000 | $34,900 | $27,900 | $41,500 | $47,965 |
| 7 | $57,700 | $58,400 | $87,500 | $58,200 | $32,300 | $36,600 | $29,300 | $41,500 | $47,965 |
| 8 | $60,400 | $63,700 | $94,600 | $60,400 | $33,400 | $37,600 | $29,800 | $43,300 | $47,965 |
| 9 | $63,100 | $65,900 | $91,600 | $69,000 | $34,000 | $38,300 | $30,500 | $43,800 | $47,965 |
| 10 | $65,700 | $70,300 | N/A | $72,800 | $34,800 | $39,500 | $30,500 | $44,800 | $47,965 |
| 11 | $69,000 | $73,300 | N/A | $67,700 | $36,000 | $40,600 | $32,400 | $45,500 | $47,965 |
| 12 | $69,400 | $72,600 | N/A | $77,000 | $37,200 | $40,400 | $33,600 | $45,400 | $47,965 |
| 13 | $69,600 | $72,100 | N/A | $72,900 | $38,400 | $41,800 | $35,500 | $46,700 | $47,965 |
| 14 | $74,300 | $77,100 | N/A | $77,800 | $40,600 | $42,700 | $35,700 | $48,900 | $47,965 |
| 15 | $74,000 | $76,500 | N/A | $70,300 | $40,700 | $43,100 | $35,600 | $49,300 | $47,965 |
Source: Longitudinal Immigration Database (IMDB), 2018
Notes: IMDB analysis includes immigrant tax-filers who are 15 and over.
Use of Social Assistance Over Time
- As economic outcomes improve over time, the incidence of social assistance generally declines for all immigrant categories, with the exception of the sponsored family class. This is likely due to sponsorship agreements, which typically end after 10 years.
Incidence of social assistance by immigration category and years since landing (YSL) (tax year 2018)
| YSL = 1 | YSL = 5 | YSL = 10 | Canadian averageFootnote 2 (2018) | |
|---|---|---|---|---|
| Economic immigrant, principal applicant | 2% | 2% | 2% | 6% |
| Economic immigrant, spouse and dependant | 3% | 3% | 3% | 6% |
| Sponsored family | 3% | 5% | 8% | 6% |
| Refugee | 42% | 32% | 25% | 6% |
| All immigrants | 8% | 6% | 7% | 6% |
Source: Longitudinal Immigration Database (IMDB), 2018
Note: IMDB analysis includes immigrant tax-filers who are 15 and over.
Civic Engagement and Sense of Belonging
Are immigrants civically engaged?
- The share of economic principal applicants who votedFootnote 3 in the 2011 federal election was on par with the Canadian-born average.
Self-declared voting rates (federal election) by immigration category
| Immigration Category | Participation average | Canadian-born average |
|---|---|---|
| Sponsored family | 66% | 81% |
| Economic immigrants- spouses and dependants | 71% | 81% |
| Economic immigrants- principal applicants | 82% | 81% |
| Refugees | 68% | 81% |
Do immigrants feel a strong sense of belonging to Canada?
- Refugees report the strongest sense of belonging to Canada (95%), compared to 91% for the Canadian-born population.
Sense of belonging to Canada, by immigration category
| Category | Participation average |
|---|---|
| Canadian-born | 91% |
| Sponsored family | 92% |
| Economic immigrants - spouses and dependants | 93% |
| Economic immigrants - principal applicants | 94% |
| Refugees | 95% |
Source: 2013 General Social Survey
Life Satisfaction
Are immigrants satisfied with life?
- Economic immigrants and refugees’ satisfaction with life remains consistent over time. Family class immigrants are less likely to be satisfied with life as they spend more time in Canada.
Percentage of the population who are “satisfied with life,” by immigration class and length of time in Canada
| Recent | Established | Canadian born | |
|---|---|---|---|
| Family class | 91.8% | 88.5% | 92.9% |
| Economic immigrants | 91.8 % | 91.5 % | 92.9 % |
| Refugees | 85.2 % | 84.8 % | 92.9 % |
Are immigrants stressed?
- Immigrants, especially refugees and family class immigrants, are more likely to report feeling stressed as they spend more time in Canada.
Percentage of the population that reported life stress to be “quite a bit/extremely stressful," by immigration class and length of time in Canada
| Recent | Established | Canadian born | |
|---|---|---|---|
| Family class | 16 % | 24 % | 23 % |
| Economic immigrants | 23 % | 26 % | 23 % |
| Refugees | 17 % | 27 % | 23 % |
Source: CCHS-IMDB linkage produced in 2017, the chart uses CCHS variables in the 2013-2014 cycle.
Note: “Recent” is defined as less than 10 years in Canada, and “established” is defined as greater than or equal to 10 years.
Citizenship Take-up Rate
- Canada’s citizenship rate is among the highest in all OECD countries, at 86% for all immigrants.
- Refugees report the highest citizenship take-up rate of all immigrants, at 89%.
- 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).
- 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 4+ years since landing, by immigration category, 2016
| Immigration Category | Group Average |
|---|---|
| Sponsored family | 80 % |
| Economic immigrants - spouses and dependants | 84 % |
| Economic immigrants - principal applicants | 83 % |
| Refugees | 89 % |
Source: 2016 Census
Children of Immigrants
University completion rate (age 25-54), by generation status
| Generation status | Average of this group |
|---|---|
| 1.5 generation | 38 % |
| Second generation | 36 % |
| Third generation or more | 24 % |
- The children of immigrants (1.5 generationFootnote 4 and 2nd generation) complete university at a higher rate than their peers with Canadian-born parents (3rd generation or higher).
- 2nd generation children earn more on average than children with Canadian-born parents, while 1.5 generation children earn less.
- The educational attainment of the children of immigrants vary by visible minority status, with children of Black and Latin American backgrounds reporting lower university completion rates.
University completion rate (age 25-54), childhood immigrants (1.5 generation)
| Immigration Category | Average of this group |
|---|---|
| All immigrants | 38 % |
| Refugees | 32 % |
| Economic immigrants | 54 % |
| Sponsored family | 24 % |
- Childhood immigrants whose parents were in the economic class are significantly more likely to complete university than children who arrived as refugees, or as a sponsored family immigrant.
Source: 2016 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 by 4% in 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 20% 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 have positive net direct fiscal contributions. Economic principal applicants make higher net 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.
- Existing research has noted that immigrants are more likely to be adversely affected by economic downturns than the Canadian-born population.
- The COVID-19 pandemic had a stronger negative labour market impact on immigrants than the Canadian-born. In particular, recently landed immigrants, as well as female immigrants overall were the most affected by the pandemic.
- Why were immigrants more affected by the pandemic than the Canadian-born?
- Lower-wage jobs: Immigrants made up a higher share of those holding low-wage jobs (jobs paying less than $600/week in February 2020) than the Canadian-born (20.2% vs. 17.3%); during this recession, the lower the weekly earnings, the greater the decline in employment.
- Type of employment: Prior to the economic shutdown, immigrants were more likely than the Canadian-born to work in the food and accommodation sector, which were the most likely to be negatively effected by the lockdown measures.
- Decline in employment rate: recent immigrants had a much shorter job tenure with current employers compared to the Canadian-born.
Impact of COVID-19 on Immigrants - One Year Later
- Prior to the onset of the COVID-19 pandemic, data from the Labour Force Survey indicated that “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) both reported unemployment rates that were comparable to the Canadian-born population. However, by the third quarter of 2020, the gap between immigrants and the Canadian-born widened significantly.
- Immigrants in the “very recent” landing cohort (those that landed less than five years prior) experienced the biggest increase in unemployment rates, from 10% in January of 2020, to a peak of 17.1% in July 2020.
- By the fourth quarter of 2020, the unemployment rate among immigrants improved significantly, particularly among those in the “very recent” landing cohort. Nonetheless, the gap between immigrants who have been in Canada for more than five years and the Canadian-born has persisted.
Unemployment rate among immigrants and the Canadian-born, aged 25-54
| Very recent immigrants | Recent immigrants | Established immigrants | Born in Canada | |
|---|---|---|---|---|
| Jan-20 | 10% | 5.4% | 4.7% | 4.3% |
| Feb-20 | 9.5% | 5.5% | 4.9% | 4.4% |
| Mar-20 | 10.1% | 6.5% | 5.7% | 5.2% |
| Apr-20 | 11.9% | 9.1% | 7.8% | 7.2% |
| May-20 | 15.2% | 11.8% | 10.3% | 9.2% |
| Jun-20 | 16.9% | 13% | 11.8% | 9.7% |
| Jul-20 | 17.1% | 12.7% | 11.4% | 8.7% |
| Aug-20 | 15.2% | 11.3% | 10.5% | 8.1% |
| Sep-20 | 13% | 10.1% | 9.4% | 7.3% |
| Oct-20 | 10.7% | 8.7% | 8.6% | 6.7% |
| Nov-20 | 9.3% | 8.6% | 8% | 5.8% |
| Dec-20 | 8.9% | 8.9% | 7.9% | 5.8% |
| Jan-21 | 9.3% | 9.4% | 8.7% | 6.4% |
| Feb-21 | 9.6% | 9.6% | 8.5% | 6.6% |
| Mar-21 | 10.8% | 9.2% | 8.5% | 6.7% |
| Apr-21 | 10.5% | 8.8% | 7.6% | 6.4% |
| May-21 | 10.5% | 8.8% | 7.4% | 6.1% |
| Jun-21 | 9.8% | 9.3% | 7.2% | 5.7% |
| Jul-21 | 9.1% | 10.1% | 7.2% | 5.5% |
Source: Labour Force Survey. Statistics Canada Table 14-10-0082-01
Key Takeaways
- Immigrants, particularly economic principal applicants, have strong, positive economic outcomes.
- Despite being admitted to Canada on a humanitarian basis, refugees become increasingly self-sufficient with more time spent in Canada.
- Though immigrants and refugees appear to integrate well based on voting rates, sense of belonging, and citizenship take-up, they are more likely to report feeling stressed as they spend more time in Canada.
- Children of immigrants and refugees outperform their peers with Canadian-born parents in terms of educational attainment.
- The COVID-19 pandemic has had a particularly negative impact on the labour market performance of immigrants. As the economy recovers, recent trends indicate that the labour market status of immigrants has steadily improved; nonetheless, the gap in unemployment rates between immigrants and the Canadian-born in recent months persists.
- Immigration, Refugees and Citizenship Canada will continue to report on the social and economic outcomes of immigrants.
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