How Much Do Immigrants Really Earn In Canada? New Tool Reveals All!

Overview of Immigrant Earnings

Recent data from Statistics Canada, released in July 2025, provides a detailed look at the earnings of immigrants in Canada. In 2021, the most recent year with comprehensive data, the average annual employment income for immigrants aged 15 and older was CAD $49,160. This figure includes income from various sources such as salaries, wages, tips, commissions, and self-employment.

However, the median income paints a different picture. At $36,800, it indicates that while some immigrants earn significantly more, many others earn below this midpoint. This disparity highlights the wide range of earnings among immigrants in Canada.

Income by Immigration Status

The data also reveals significant differences in earnings based on immigration status:

• Non-permanent residents, such as those on work or study permits, earned an average of $32,080.
• Recent immigrants, admitted in the last 10 years, had an average income of $42,320.
• Long-term immigrants, who have been in Canada for over a decade, earned an average of $52,050.
• Canadian-born individuals earned an average of $51,400 in 2021.

This data shows a clear trend: the longer immigrants stay in Canada, the closer their incomes get to—and sometimes even surpass—those of Canadian-born individuals.

Education and Earnings

Educational attainment plays a crucial role in determining earnings among immigrants. The data highlights the following:

• Immigrants with no certificate, diploma, or degree earned an average of $27,400.
• Those with a secondary school diploma earned $32,920.
• Individuals with a postsecondary certificate or diploma earned $42,920.
• Those holding a bachelor’s degree or higher earned $65,200.

This underscores the financial benefits of higher education in Canada, with university graduates earning more than twice as much as those without formal credentials.

Trends and Disparities

Several trends and disparities emerge from the data:

• Younger immigrants have shown significant income growth, earning 44% more over a decade compared to older newcomers. This is largely due to their adaptability and ability to adjust to the Canadian labor market more quickly.
• Non-permanent residents consistently earn less than all other groups, reflecting broader systemic challenges such as fewer opportunities and less stability in employment.
• The income gap between temporary foreign workers and Canadian-born employees has widened significantly. The average wage gap increased from 9.5% lower in 2006–2014 to 22.6% lower in 2015–2024. This is attributed to an increase in younger, less-experienced temporary workers from lower-income countries and a reduction in the share of temporary residents working in skilled occupations.

What Factors Impact Immigrant Earnings?

Several factors affect how much immigrants earn in Canada:

• Language proficiency and Canadian work experience are critical in boosting earnings.
• The length of time in Canada correlates with higher incomes.
• Field of education and occupation significantly influence earning potential.
• Systemic barriers, such as the recognition of foreign credentials, can impact initial earnings for skilled immigrants.

Key Takeaways

• Immigrants’ average annual income in 2021 was approximately $49,160, with a significant portion earning less than the average.
• Long-term immigrants tend to achieve income parity with Canadian-born workers over time.
• Higher education is strongly linked with higher earnings for immigrants in Canada.
• Younger, adaptable immigrants and those who invest in language skills and Canadian work experience fare better in the job market.
• Non-permanent residents earn less, highlighting an equity challenge within the immigration system.
• The wage gap between temporary and Canadian-born workers has doubled in the past decade, partly due to changing worker demographics and a shift away from skilled occupations among temporary residents.

Investing in education, language training, and gaining Canadian work experience remains among the most effective ways for newcomers to improve their earning potential in Canada.

Gender Differences in Earnings

The data also reveals notable gender disparities among immigrants in Canada. In 2021, immigrant men earned an average of $53,400 annually, while immigrant women earned $44,800. This gender wage gap is consistent with broader trends in Canada but is slightly narrower compared to previous years, suggesting gradual progress in equalizing earnings between genders.

Regional Earnings Disparities

Earnings for immigrants also vary significantly depending on the region of residence in Canada:

• Ontario: $50,120 average annual income.
• British Columbia: $48,900 average annual income.
• Alberta: $54,300 average annual income.
• Quebec: $45,800 average annual income.
• Other provinces: $43,600 average annual income.

These regional differences are influenced by factors such as the cost of living, local job markets, and the prevalence of high-paying industries.

Occupation and Earnings

Occupation plays a significant role in determining immigrant earnings. Certain sectors dominate immigrant employment, with varying levels of compensation:

• Healthcare and social assistance: $63,200 average annual income.
• Professional, scientific, and technical services: $73,400 average annual income.
• Manufacturing: $45,300 average annual income.
• Retail trade: $32,100 average annual income.
• Accommodation and food services: $28,400 average annual income.

Immigrants in skilled trades and professional occupations tend to earn higher wages, while those in service-oriented industries often face lower earnings.

Part-Time vs. Full-Time Work

The proportion of immigrants working part-time versus full-time also impacts earnings. In 2021:

• Full-time workers: $53,600 average annual income.
• Part-time workers: $19,800 average annual income.

While many immigrants secure full-time employment, a significant portion work part-time, which contributes to lower overall earnings.

Policy Implications and Recommendations

The data highlights several policy areas where interventions could improve immigrant earnings and integration:

• Credential recognition: Streamlining the recognition of foreign qualifications could help skilled immigrants access higher-paying jobs.
• Language training: Increasing access to language programs could enhance employability and earnings potential.
• Job market alignment: Better aligning immigrant skills with labor market demands could reduce underemployment and boost wages.
• Equity initiatives: Addressing systemic barriers, such as gender and racial disparities, could promote more equitable earnings for all immigrants.

Success Stories: Immigrants Thriving in Canada

Despite challenges, many immigrants achieve significant economic success in Canada. For example:

• Immigrants in technology and engineering fields often earn premiums, with average incomes exceeding $80,000.
• Entrepreneurial immigrants contribute disproportionately to the economy, with many starting successful businesses that create jobs for others.
• Immigrants who pursue additional Canadian education or certifications often see rapid income growth.

These success stories demonstrate the potential for immigrants to thrive in Canada’s economy when given the right support and opportunities.

Conclusion

The earnings of immigrants in Canada are shaped by a complex interplay of factors, including education, occupation, immigration status, and regional location. While many immigrants achieve financial success, others face systemic barriers that limit their earning potential. By addressing these challenges through targeted policies and programs, Canada can ensure that all immigrants have the opportunity to contribute fully to the economy and achieve prosperity.

Conclusion

The earnings of immigrants in Canada are influenced by a variety of factors, including education, occupation, immigration status, and regional location. While many immigrants achieve financial success, others encounter systemic obstacles that restrict their earning potential. By implementing targeted policies and programs, Canada can ensure that all immigrants have the opportunity to fully contribute to the economy and attain prosperity. The data highlights the importance of education, language proficiency, and work experience, underscoring the potential for immigrants to thrive with the right support.

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