A recent report by Statistics Canada revealed that newcomers arriving in Canada through the PNP tend to earn higher incomes when settling in the country’s three most populous provinces.
The report highlighted “significant differences among provinces in the average earnings of provincial nominees” across Canada. As of 2020, the highest annual earnings for PNP candidates within one or two years after landing were observed in Ontario ($59,600), Alberta ($54,200), and British Columbia ($58,100).
Conversely, the lowest earnings for PNP candidates are in Atlantic Canada, Manitoba, and Saskatchewan. The report attributed these variations to local unemployment rates and the background characteristics of PNP principal applicants.
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This trend remained consistent, regardless of the time elapsed since landing—one year or five years. The report concluded that diverse economic conditions unique to each province and the background characteristics of PNP candidates contributed to these disparities. Background characteristics encompassed factors such as lower levels of education, limited pre-landing Canadian work experience or education, and proficiency in official languages.
Moreover, the report underscored the impact of competition for high-skilled positions in provinces with higher unemployment rates. Newcomers and Canadian-born job seekers may be compelled to accept positions with lower earnings. For instance, the latest data from Statistics Canada revealed a 10% unemployment rate in Newfoundland and Labrador in November 2023. While British Columbia experienced a lower rate of 5.3%.
These findings highlight the complex interplay of economic conditions. Also background characteristics and regional dynamics in shaping the earning potential of PNP candidates across different provinces in Canada.
Earnings Disparities Across Immigration Pathways
The report also identified noteworthy variations in the earnings of economic immigrants based on their chosen immigration program or pathway. Since 2005, there has been a shift in programs yielding the highest earnings post-immigration, transitioning from Provincial Nominee Program (PNP) candidates to those entering Canada through the Express Entry Federal Skilled Worker Program (FSWP) or the Canadian Experience Class (CEC).
The report elaborated on the factors influencing the difference in entry earnings between FSWP and PNP immigrants. Citing pre-landing Canadian work and study experience, educational attainment, language proficiency, source region, and age as contributing elements.
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Immigrants arriving through an Express Entry program undergo an Educational Credential Assessment for foreign education. Also formal language tests to meet official language requirements. And high scores in various human capital factors within the Comprehensive Ranking System (CRS). The report highlighted that CRS scores were consistently higher among FSWP and CEC candidates than PNP candidates.
A high CRS score indicates that a candidate has sought-after human capital attributes upon immigration. Positioning them favorably for skilled work with higher earnings. Notably, the PNP does not utilize the CRS for those not already in the Express Entry pool. Furthermore, candidates in specific PNP streams, targeting entry-level and semi-skilled individuals, may not need the same education or work experience level for immigration.
CEC emerged prominently among the Express Entry programs. According to IRCC data from January to September 2023, 23,910 CEC candidates received ITAs in Express Entry draws. In comparison, ITAs were issued to 15,855 FSWP candidates and 13,655 PNP candidates during the same period.
