According to a report by the Sing Tao Daily in Canada, the latest research report released by Statistics Canada on November 29 shows that the average income of male immigrants in 2010 was over CAD 60,000, lower than the over CAD 70,000 earned by Canadian-born individuals, with a ratio of 86%. However, this is an improvement from 76% in 1991, indicating that the income gap between immigrants and Canadian-born individuals has narrowed over the past 20 years. Statistics Canada also pointed out that the improvement in the income ratio for immigrants may be related to more individuals working in large companies and receiving better retirement benefits.
Experts believe that the income gap for new immigrants may be due to the lack of local recognition of their educational qualifications and language proficiency. However, the narrowing income gap indicates that immigrant incomes are not perpetually lagging behind those of Canadian-born individuals, and that immigrants also contribute to the Canadian economy.
Statistics Canada based its findings on the Longitudinal Worker File from the 1991 Census, comparing immigrants aged 25 to 34 who arrived between 1985 and 1990 with Canadian-born individuals. The income calculations were adjusted to reflect the value in 2010, including inflation factors. In fact, in 2008, Statistics Canada also compared the incomes of immigrants and Canadian-born individuals from 1980 to 2000, tracking whether the income gap has improved over the years and whether there is a possibility of eventual parity.
The survey found that the average income of male immigrants in 2010 was CAD 60,330, while Canadian-born males earned CAD 70,210. In 1991, the average annual income for male immigrants was CAD 35,290, compared to CAD 46,410 for Canadian-born males. This shows that over the past 20 years, the income ratio for male immigrants has increased from 76% in 1991 to 86%.
Additionally, male immigrants with lower educational attainment (defined as having a high school diploma or less) had an income ratio of 78% compared to Canadian-born individuals, while those with higher educational attainment had an income ratio of 93%, indicating that higher education levels among male immigrants contribute to closing the income gap with local Canadian-born individuals.
During the same period, female immigrants performed even better, achieving an income ratio of 93% compared to Canadian-born females in 2010.
The report also noted that during the same period, the employment rates for male and female immigrants were 64% and 59%, respectively, while the rates for Canadian-born individuals were 79% and 71%. The lower employment rates for immigrants are estimated to be related to layoffs, resignations, or other reasons, as they have a higher rate of changing employers compared to Canadian-born individuals.
The survey results also found that during the same period, the proportion of immigrants joining large companies and receiving retirement benefits increased. In 2010, 39% of male immigrants worked in companies with over 500 employees, compared to only 30% in 1991. During the same period, the proportion of Canadian-born individuals working in large companies was about 50%. In 2010, 44% of male immigrants had a Registered Pension Plan (RPP) or a Deferred Profit-Sharing Plan (DPSP), up from only 25% 20 years ago.