StatsCan data offer insight on your immigrant-client’s income

StatsCan census data from 2016, released this week, shed light on your immigrant clients’ financial status, as summarized in an economics report by Scotiabank economist Marc Desormeaux.

For example, immigrant incomes in 2014 were 86% of Canadian-born workers’ earnings, he finds.

Last year, a StatsCan report revealed that, one year after immigration, the median employment income of immigrant taxfilers who landed in Canada in 2013 was $22,000. The median income for those who landed in 2011 or 2012 was $21,000 one year after landing in Canada.

Referring to the 2016 data, Desormeaux says, “Newcomers to Atlantic Canada fared the best, with incomes greater than other residents’ in every province but P.E.I., led by immigrants in St. John’s and Saint John.”

However, “in Toronto and Vancouver, the earnings gap exceeded 25%,” he says, “and it also was stubbornly high across the Prairies.”

Economic immigrants on the rise

Related to incomes is the rising share of immigrants admitted under the economic category. The category includes immigrants selected for their skill sets or ability to invest, create their own employment or meet specific Canadian labour market needs.

Economic immigrants rose to more than 60% during 2011-16, from 42% during the 1980s, says Desormeaux.

Immigrants follow the economy

Toronto, Montreal and Vancouver remain the most prominent destinations for immigrants, accounting for more than half of total and economic immigrants during 2011-16 — larger than their 36% population share.

“Economic conditions in the various receiving regions undoubtedly played a major role in the geographic distribution of immigrants,” says StatsCan in a report.

First-generation immigrants accounted for 21.9% of the Canadian population in 2016.

Read the full Scotiabank report.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.