Average Salary for Immigrants in Canada

Average Salary for Immigrants in Canada

Overview

People from all over the world are looking to immigrate to different countries for various reasons – with the most obvious reason being a more stable financial freedom. Although immigrants have different countries to choose from, immigrants have found Canada more suitable.

Hence, the question of the average salary earned by immigrants in Canada keeps coming up. This article is aimed at addressing these questions and granting satisfactory answers regarding them.

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Immigrants coming to Canada are enjoying higher incomes but are still earning less overall than Canadians, reveals a Statistics Canada report released this week.

“The median entry wage for immigrants admitted to Canada in 2017 was the highest to date, reaching $30,100 in 2018,” state the authors of the report by Canada’s statistical services agency.

“This value surpassed the previous high of $26,500 for 2017 outcomes of immigrants admitted in 2016.” A median wage is sometimes considered to be more representative of a situation than an average wage.

Insight

As a bigger chunk of immigrants became new permanent residents through the Express Entry system in the past few years, more of them were also subjected to that system’s requirement for a Labour Market Impact Assessment (LMIA).

In an LMIA, the impact on the local market of the immigrant taking a job is indicated.

And to make things fair for newcomers, the LMIA process usually requires that the applicant’s job offer letter show he or she will be paid at least the same amount as the median wage for Canadians in such positions.

The trend towards more immigrants coming to Canada under economic programs also means more of them are arriving with Canadian work experience – and that helps them command higher wages.

“Compared with previous years, more immigrants admitted in 2017 had pre-admission experience in Canada, such as having held a work or study permit or having claimed refugee status before admission,” notes Statistics Canada.

“Pre-admission experience, which can provide immigrants with language skills and knowledge of the job market, can help immigrants settle more quickly than those with no pre-admission experience.”

What is an Average Salary?

An average salary is the total of all the wages for a group of people divided by the number of people in that group. Irrespective of the skill-sets and the occupation they are having work experience of; Canada offers them a minimum salary in Canada per month to lead a stable life in the country.

In Canada, that median wage for immigrants has grown steadily since the arrival of Canada’s Express Entry system six years ago and the subsequent rise in the percentage of immigrants who move to Canada under economic programs.

Average Salary in Recent Times

The Average Salary for a full-time worker in Canada is $54,630 per year or $1050.59 per week. This marks a 4% increase in salary growth than the previous year. The majority of Canadians are earning more than they earned in the previous years.

When immigrants snag a work permit and come to Canada with previous work experience, their salaries are typically even higher than the median wage for Canadians.

In the 2018 tax year, immigrants who had arrived in Canada the previous year and had both a study and work permit had a median entry wage of $44,000. Even those with only a work permit had a median wage of $39,100 that year.

That’s higher than the Canadian median wage that year.

But it’s not all immigrants who are commanding those higher salaries. Immigrants who came to Canada without pre-admission experience had a median wage of only $22,600, far less than the Canadian median wage.

“While immigrants with study experience only have a lower median entry wage, they tend to be younger than immigrants with other types of pre-admission experiences and may continue studying after admission, which contributes to strong wage catch-up over time,” reports Statistics Canada.

Average Salary in the Province

The average salary of an immigrant varies from province to province. However, this is because there are occupations that are really in high demand in some provinces in comparison to others. Below is the province and their average salaries;

  • Ontario – $55,524;
  • Northwest Territories – $77,670;
  • Saskatchewan – $54,371;
  • Nunavut – $87,355;
  • Yukon – $61,812;
  • Newfoundland and Labrador – $55,508;
  • British Columbia – $53,516;
  • Alberta – $61,865;
  • Manitoba – $49,661;
  • New Brunswick – $49,511;
  • Nova Scotia – $48,470;
  • Quebec – $51,375;
  • Prince Edward Island – $45,912.

However, surprisingly, the average salary of Newfoundland and Labrador, and Saskatchewan has increased rapidly. Ontario and Newfoundland and Labrador are having an identical average range.

Highest Paying Jobs

The employment sectors with the highest average annual wages in Canada are energy and natural resources, finance and insurance, and scientific and technical services.

  • Mining, Oil and Gas Extraction: $113,506.12
  • Utilities: $101,531.04
  • Finance and Insurance: $76.843
  • Professional, Scientific, and Technical Services: $76,077.56
  • Public Administration: $75,799.88

Employees in Canada are likely to achieve an annual increase of 9%. However, these increases can vary from person to person. It depends on the performance of the individual and contribution to the organization. These are important factors that determine the percentage increment. Others include;

Accommodation and Food Services
$22,877
Administrative and Support
$47,369
Arts, Entertainment and Recreation
$40,241
Construction
$68,374
Education
$58,343
Finance and Insurance
$76.843
Forestry and Logging
$58,739
Health Care and Social Assistance
$52,888
Information and Culture Industries
$71,634
Management of Companies and Enterprises
$74,560
Manufacturing
$59,250
Mining, Oil and Gas Extraction
$113,506
Professional, Scientific, and Technical Services
$76,077
Public Administration
$75,799
Real Estate (Rental/Leasing)
$58,623
Retail
$34,503
Transportation and Warehousing
$61,011
Utilities
$101,531
Wholesale Trade
$67,456

Big factors in helping newcomers land higher wages in Canada are knowledge of the country’s two official languages and their ability to get their foreign credentials recognized by Canadian employers.

Furthermore, the importance of those two factors in securing higher wages both upon arrival and a decade after being in Canada becomes immediately apparent when looking at which newcomers command the highest and lowest salaries by their country of origin.

Among immigrants who came to Canada in 2008, those who earned the least were Algerians who had a median wage of $15,300. Those who earned the most were immigrants born in the United States who had a median wage of $86,200.

Average Salaries with the Most Increase

If you are looking for a job in Canada, you need to know which industries have seen the most growth in recent years. On a national scale, there is 4% incremental growth in salaries, but these industries have seen almost double the growth with 8% – 26%.

  • Arts, Entertainment and Recreation: +26.3%
  • Real Estate (Rental/Leasing): +14.6%
  • Administrative and Support: +9.4%
  • Public Administration: +9.3%
  • Finance and Insurance: +9.1%
  • Health Care and Social Assistance: +8.4%
  • Retail: +8.0%
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