CANADA

Immigrant income gap is widening, states a new report

The Canadian Press
Yesterday 

The widening income gap between newcomers and all other Canadians shows that the country needs to do more to leverage the depth of immigrants’ talent and skills, states a new study by the Century Initiative.

Unveiled on the eve of the 2022 Federal Budget, the report said that the median income for immigrants in 2018, five years after arrival, was $29,800, while the median income for all Canadians was $37,100. The $7,300 gap represents a $300 increase compared to the previous three years.

The income gap for immigrant women and refugees is even wider, said the authors of Century Initiative’s second National Scorecard on Canada’s Growth and Prosperity.

In 2018, the median income for those who arrived as refugees was $25,300 five years after arrival, representing a gap of $11,800 compared to the overall Canadian population. Immigrant women also faced much lower levels of median income five years after arrival ($25,000 in 2018) compared to men ($36,200 in 2018), the study said.

“This means that the human capital potential of immigrants is not being fully or effectively utilized by the economy,” concluded Century Initiative, which advocates for policies to increase Canada’s population to 100 million by 2100.

“In our submission to the pre-budget consultation we recommended that the federal government commit to expanding settlement services that help immigrants succeed once landed in Canada,” she said.

“We also recommended continued investments in Canada’s immigration system to make it easier to navigate, and more welcoming to newcomers.

These settlement services should also be targeted toward small and rural communities to improve the likelihood that immigrants will stay in those communities,” said Lalande.

The Scorecard assesses 38 indicators across six focus areas: Growing to 100 million, Immigration, Economy, Innovation & Entrepreneurship, Education, Skills & Employment, Support for Children & Families, and Infrastructure & Environment.

“This year’s Scorecard shows that while Canada is making progress in some areas, there is much work to be done in others. For example, after years of advocacy, Canada is finally on the path to implementing a national plan for childcare,” said Lalande, in her introduction to the Scorecard.

Key insights from the Scorecard released today at a Toronto conference entitled Unlocking our Potential, What do immigrants mean to Canadian innovation, include:

Fabian Dawson, Local Journalism Initiative Reporter, New Canadian Media