In a recent report by Statistics Canada, the Provincial Nominee Program (PNP) emerges as a key factor influencing the earnings of newcomers settling in Canada. The study unveils significant disparities in average earnings among PNP candidates across various provinces, shedding light on the intricate relationship between local economic conditions, background characteristics, and immigration pathways.
Regional Disparities in PNP Earnings
Based on data from 2020, the report highlights that PNP candidates in Ontario, Alberta, and British Columbia experienced the highest annual earnings within one or two years after landing, with figures standing at $59,600, $54,200, and $58,100, respectively. Conversely, Atlantic Canada, Manitoba, and Saskatchewan recorded the lowest earnings for PNP candidates. The report attributes these variations to local unemployment rates and the diverse background characteristics of PNP principal applicants.
Consistency Over Time
Interestingly, the earnings disparities persist regardless of the time passed since landing, extending from one to five years. The report suggests that this continuity is influenced by unique economic conditions specific to each province, coupled with the distinct background characteristics of PNP candidates.
Factors Influencing Earnings
Background characteristics, such as lower education levels, limited pre-landing Canadian work experience, and language skills, play a pivotal role in shaping earnings outcomes. The report underscores that high-skilled positions face increased competition in provinces with higher unemployment rates. This further compels newcomers and Canadian-born individuals to accept lower-paying positions.
Impact of Immigration Pathway
The study delves into the impact of immigration pathways on earnings, revealing noteworthy changes since 2005. While PNP candidates once boasted the highest earnings post-immigration. The landscape shifted after 2015, coinciding with the introduction of the Express Entry application management system by Immigration Refugees and Citizenship Canada (IRCC).
Express Entry Programs Leading the Way
The Express Entry Federal Skilled Worker Program (FSWP) and the Canadian Experience Class (CEC) now take the lead in terms of post-immigration earnings. The report attributes this shift to factors like pre-landing Canadian work and study experience, and educational attainment, to name a few. Candidates under Express Entry programs undergo a rigorous selection process, including an Educational Credential Assessment and formal language tests.
The Role of Comprehensive Ranking System (CRS) Scores:
CRS scores, a key component of Express Entry, signal in-demand human capital attributes, positioning candidates for skilled work with higher earnings. Notably, PNP candidates, particularly in streams targeting entry-level and semi-skilled individuals, may not require the same education or work experience for immigration.
Understanding the Canadian Experience Class (CEC)
One of the prominent Express Entry programs is the Canadian Experience Class (CEC). Data from IRCC reveals that between January and September 2023, 23,910 CEC candidates received Invitations to Apply (ITAs) in Express Entry draws, surpassing the Federal Skilled Worker Program and PNP candidates.
Provincial Nominee Program (PNP)
The PNP serves as an economic immigration pathway allowing provincial governments to select candidates aligned with local labor force needs. Candidates nominated by the province enhance their permanent residency applications submitted to IRCC. The PNP contributes significantly to Canada’s immigration targets, with 110,000 new permanent residents expected in 2024, rising to 120,000 annually in 2025 and 2026.
The intricate relationship between provincial variations, background characteristics, and immigration pathways shapes the earnings landscape for newcomers in Canada. As the PNP continues to play a pivotal role in Canada’s immigration strategy, understanding these dynamics becomes crucial for individuals navigating the complex journey of settling in a new country.
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