Immigrants who obtain permanent residence under the Provincial Nominee Program (PNP) and the Canadian Experience Class (CEC) do better in the labor market than those who immigrate under the Skilled Worker Program foreigners (PTFE) and the Quebec Skilled Worker Program (QSWP).
This is what a study conducted by Statistics Canada in collaboration with Immigration, Refugees, and Citizenship Canada (IRCC) reveals.
On August 18, Statistics Canada released two new studies, the second exploring how well Canadian work experience and pre-arranged employment can predict the labor market outcomes of economic immigrants.
Reasons that make PNP and CEC candidates fare better in the market
PNP and CEC immigrants tend to be more successful in the labor market because they are likely temporary foreign workers in Canada before becoming permanent residents.
Temporary foreign workers gain invaluable knowledge of what is expected of them in the Canadian labor market. Additionally, many temporary foreign workers were international students in Canada who obtained post-graduate work permits (PTPDs). In this case, they would likely have lived in Canada for several years before obtaining permanent resident status. This means that not only would they have developed the ability to demonstrate the knowledge sought by employers, but they would also have improved their language skills.
This suggests that pursuing a course of study in Canada may be beneficial for several reasons, including obtaining a high-quality degree, gaining Canadian work experience as well as obtaining better results after becoming permanent residents than those who did not study in Canada.
The study also shows that two-thirds of permanent residents selected through the PNP were temporary foreign workers, as were virtual all those selected through the CEC.
In comparison, temporary foreign workers represented only a quarter of those selected under the PTFE or QSWP.
The Canadian experience is increasingly important for immigration. Previous research has shown that this experience is a strong indicator that a prospective immigrant will integrate quickly into the Canadian labor market.
The vast majority of PNP immigrants (93 percent) and CEC immigrants (95 percent) found employment within the first full year after becoming permanent residents.
CEC immigrants earned 56 percent more than their PFEQ counterparts in the first full year after becoming permanent residents. By year five, CEC immigrants still earned 30 percent more than PTQF immigrants.
PNP candidates earn higher in the first year. However, they also had significantly lower incomes than PQT immigrants in the fifth year after immigration. One of the reasons for this may be that PNP immigrants are more likely to be selected for low- or medium-skilled jobs. These jobs, compared to highly skilled jobs, tend to show low-income growth.
It is important to mention that FSWP immigrants always do well in the job market. Previous research shows that they integrate quickly into the Canadian labor market.
This is because immigrants in the PSTF possess essential characteristics that would help them succeed in Canada, such as high language skills and education levels. Also, they tend to do better than the Canadian population after several years.
Another notable fact is that this study takes into account economic class immigrants between 2009 and 2016.
Given that Express Entry was introduced in 2015 and the data on labor market outcomes is not as comprehensive as that of previous immigrant cohorts, we can see that PQT immigrants have more economic outcomes. stronger in the future than previous cohorts, given the competitive nature of Express Entry.
Outcomes of the Pre-established jobs versus Canadian work experience
The second study found that people with Canadian work experience appear to be a better predictor of labor market outcomes than pre-established employment. Economic immigrants who had Canadian experience before becoming permanent residents were 8% more successful in the labor market than those who had no Canadian work experience.
Immigrants with pre-established jobs earned 15 percent more than those without, in the first two years after becoming permanent residents.
This may explain why immigrant applicants who have a pre-established job offer receive between 50 and 200 additional Comprehensive Ranking System (CRS) points, depending on the seniority of the position offered. CRS is the points system used by the Express Entry system to assess applicants applying to one of Canada’s economic immigration programs (FSWP, PNP, and CEC, among others).
Also, immigrants who had high incomes in Canada before becoming permanent residents earned almost double those with no Canadian work experience.
It remains true even after controlling the other factors like education. The study also suggests that having a predetermined job before immigration was associated with a higher salary.
Generally speaking, Canadian work experience, as well as pre-established employment, are important indicators of labor market outcomes.
Having pre-immigrant work experience in Canada was a good predictor of immigrants’ earnings after becoming permanent residents. However, having a pre-established job was not.
Basics of Canadian Immigration
Express Entry, the system used by the federal government to manage applications for permanent residence under three economic immigration programs: CEC, FSWP, and Federal Skilled Trades Program (FSTP).
PNP applicants must still be eligible for any of the above programs if they wish to receive an invitation to apply for permanent residence through the Express Entry system.
Applicants eligible for one of the three economic immigration programs enter the Express Entry pool and are then assessed and awarded a CRS score. The score is based on several factors including age, work experience, education, and language skills. IRCC regularly hosts Express Entry draws where top-ranked applicants are invited to apply for permanent residence.