Labour Market Outcomes of Immigrants in Ontario and its Major Cities

1. Summary

This report provides details on long-term trends of international immigrants in Ontario's labour market. The scope of this report is limited to international immigrants (also referred to in this report as immigrants), which include economic immigrants, immigrants sponsored by family, refugees, and other immigrants. The analysis in this report does not include interprovincial migrants and non-permanent residents such as temporary foreign workers and international students.

Ontario’s labour force growth increasingly driven by immigration

• Ontario welcomed a record-breaking 227,424 immigrants in 2022, many of whom will seek employment in the province’s labour market.
• Since the mid 2010s, immigrants have contributed 63 per cent of the increase in Ontario’s labour force, much larger than the 39 per cent share observed from the late 2000s to early 2010s.

An increasing share of recent immigrants[1] are core working age with university education and experience in Canada

• The share of immigrants in the core working age group (25-54 years) has increased from 43.7 per cent of those who landed in the 1980s to 62.3 per cent of immigrants who landed in 2016-2022.
• The age composition of immigrants is younger than that of the total Ontario population. In the 2016 to 2022 period, 92.0 per cent of immigrants were under 54 years compared to 69.0 per cent for the total population.
• Policy changes have contributed to a larger share of recent core working age immigrants having postsecondary education credentials (80.0 per cent) and Canadian work and/or study experience (38.5 per cent) compared to long-established immigrants (66.7 per cent and 5.4 per cent, respectively).

Recent immigrants are faring better in the labour market but challenges persist

• The labour participation rate of recent immigrants of core working age was about 13 percentage points lower than non-immigrants in 2006, but this gap has decreased rapidly in recent years to 3.5 percentage points in 2022. The improvement partly reflects policy changes that have emphasized work and education experience.
• The unemployment rate of immigrants historically was more than two percentage points higher than non-immigrants, but this difference narrowed in the 2010s.
• Despite these improvements, challenges remain for immigrants in the labour market. For example, 15.9 per cent of core working age immigrants with a university degree were employed in a position requiring no more than a high school education in 2021, higher than the 9.6 per cent of non-immigrants.

Immigrants’ wages have made gradual progress

• The difference in median wages[2] between new immigrants[3] and the total population narrowed from $10,700[4] in 1982 to a low of $6,200 in 2019, reflecting policy changes in the selection of immigrants that improved their employment outcomes.
• Among core working age immigrants, only established immigrants who arrived in the 1980s had higher wages in 2020 ($61,600) compared to non-immigrants ($56,000). Core working age immigrants who landed after 1990 had lower median wages compared to non-immigrants.

Ontario immigrants who have a university degree and have Canadian pre-admission work and study experience earn higher median wages

• Core working age immigrants with a bachelor’s degree or higher earned the highest median wage among all immigrants in 2020 ($61,200) and experienced the smallest percentage gap in median wage relative to non-immigrants with the same education credentials over the 1980 to 2015 period.
• Among all immigrants, those with both Canadian pre-admission work and study experience earned the highest median wage ($72,500, 10 years after admission) in 2020, much higher than those with only work experience ($45,100) and only study experience ($43,000).

The majority of Ontario’s immigrants settled in Toronto

• Toronto[5] attracted 67.0 per cent of recent immigrants coming to Ontario in 2021, disproportionately larger than the 32.1 per cent share of the province’s total non-immigrant population who reside in the area.
• Toronto retained on average 82.1 per cent of its immigrants 10 years after admission, far higher than other major Ontario cities.

Immigrants in all major cities in Ontario earned lower median wages than non-immigrants

• Out of the major Ontario cities, core working age immigrants in Ottawa-Gatineau earned the highest median wage in 2020 ($55,600 vs. $67,000 for non-immigrants), followed by Oshawa ($54,000 vs. $57,600 for non-immigrants) and Greater Sudbury ($51,600 vs. $57,600 for non-immigrants).
• Immigrants in St. Catharines-Niagara earned the lowest median wage ($36,800 vs. $44,800 for non-immigrants), followed by Windsor ($39,200 vs. $50,000 for non-immigrants) and London ($43,200 vs. $50,800 for non-immigrants).

2. Introduction

Ontario’s labour force is broadly comprised of individuals born in Canada, non-permanent residents such as temporary foreign workers, and international immigrants with permanent resident status, a group that includes economic immigrants, immigrants sponsored by family, refugees, and other immigrants.[6]

International immigration has become a significant source of Ontario’s labour force growth in recent years, contributing to nearly two-thirds of the increase in the province’s workforce since the mid 2010s. With international immigration to Ontario reaching a record 227,424 in 2022 and expected to remain high in the near term, the employment outcomes of new permanent residents will play a significant role in the province’s economic growth.

This report provides details on long-term trends of international immigrants with permanent resident status (also referred to in this report as immigrants) in Ontario's labour market. The analysis in this report does not include non-permanent residents such as temporary foreign workers and international students, or interprovincial migrants.

The report is organized as follows:

• Chapter 3 discusses the importance of immigration for Ontario’s labour force growth and provides details on the composition and labour force characteristics of those coming to the province from other countries over the 1980 to 2021 period.
• Chapter 4 reviews immigrants’ engagement in the labour market, compares their participation and unemployment rates with non-immigrants and identifies the industrial distribution of newcomers’ employment.
• Chapter 5 examines the labour market earnings of immigrants in Ontario, provides details on their median wages relative to non-immigrants and highlights the factors that help support higher earnings by immigrants.
• Chapter 6 provides information on which major Ontario cities immigrants tend to settle in and looks at the wages they earn in comparison to non-immigrants.

The figures in this report are based on data from Statistics Canada’s 2021 Census, Demographic Estimates, Labour Force Survey, and Longitudinal Immigration Database. All wage data in this report are presented in 2020 constant dollars.

3. Composition and labour force characteristics of immigrants in Ontario

Ontario’s labour force growth increasingly driven by immigration

International immigration to Ontario is affected by the annual targets for immigration levels set by the federal government, policy changes in admission programs and the province’s economic performance relative to other regions of the country. Following a rapid increase in the late 1980s, the annual number of international immigrants arriving in Ontario generally ranged from 90,000 and 150,000 over the past three decades. After immigration declined in 2020 and 2021 due to the impacts of the COVID-19 pandemic, Ontario welcomed a record-breaking 227,424 immigrants in 2022, reflecting the easing of pandemic border restrictions, efforts to lessen the administrative backlog and higher immigration targets introduced by the federal government.[7]

Ontario’s share of immigrants to Canada has also shifted, declining from a peak of 59.6 per cent in 2002 to 36.1 per cent in 2017, but has since increased to 42.5 per cent in 2023.

The composition of international immigration in Ontario has shifted towards core working age immigrants

The age composition of international immigrants settling each year in Ontario has shifted significantly over the past four decades with the share of core working age immigrants increasing from 43.7 per cent of those who landed in the 1980s to 62.3 per cent of immigrants who landed in 2016-2022.[9] The share of older working age immigrants decreased from 6.6 per cent in the 1980s to 4.0 per cent in 2016-2022, while the share of immigrant youths eased from more than 20 per cent to 13.3 per cent over the same period.

The age composition of recent immigrants[10] is much younger than the age composition of the total Ontario population. The share of immigrants 54 years and under was 92.0 per cent in 2016-2022, much larger than the 69.0 per cent share in the total population over the same period.[11] As Ontario’s population continues to age, immigration is expected to only partially offset the projected decline in the province’s working-age population.[12]

A rising share of recent immigrants are university-educated and have Canadian pre-admission work and/or study experience

Based on the 2021 Census, a rising share of recent immigrants have postsecondary education credentials. Of core working age immigrants who landed in 2016-2021, 64.2 per cent had a bachelor’s degree or higher in 2021, compared to 55.7 per cent of immigrants who landed in 2011-2015 and 33.8 per cent of all non-immigrants.[13]

Among those with postsecondary education, 30.2 per cent of all core working age immigrants held degrees, diplomas or certificates in science, technology, engineering and mathematics, almost double the 16.0 per cent of non-immigrants.[14] The most popular areas of study for immigrants were business and administration (25.6 per cent), engineering (14.0 per cent), and health care (12.2 per cent). For non-immigrants, the most popular areas of study were trades, services, natural resources and conservation (21.2 per cent), business and administration (17.3 per cent), and social and behavioural sciences (14.7 per cent).

In addition to advanced levels of education, more of these newcomers have higher rates of Canadian pre-admission work and/or study experience prior to becoming permanent residents. This trend reflects changes in admission criteria that favour skills and work experience acquired in Canada.[15] Of the core working age immigrants who landed in 2016-2021, 38.5 per cent had a work permit, a study permit or both prior to becoming permanent residents, higher than the 27.4 per cent of immigrants who landed in 2011-2015 and the 13.8 per cent who landed in the 2000s.[16] Despite these gains, recent immigrants to Ontario with Canadian pre-admission experience remain a minority. Among immigrants who landed in 2016-2021, 53.8 per cent had no Canadian pre-admission experience.

Economic immigrants make up over half of recent immigrants in Ontario

Immigration admission categories in Canada can be broadly categorized into economic immigrants and their dependents, immigrants sponsored by family, and refugees. Economic immigrants are admitted by selection based on their ability to meet labour market needs through employment, investment or entrepreneurship.[17] The proportion of immigrants accepted under the economic immigrant category increased from 43.4 per cent in the 1980s to 51.7 per cent in 2016-2021, while the share of immigrants sponsored by family declined from 34.3 per cent to 25.8 per cent over the same period.[18]

Economic immigrants can be further categorized into several programs. Worker programs, which focus on immigrants’ skills and work experience, include the Canadian experience class, skilled workers, skilled trades workers and caregivers. Business programs, which focus on immigrants’ ability to secure their own source of income or make substantial investments, include the entrepreneur, investor and self-employed categories. In addition to these federal programs, Ontario participates in the provincial nominee program which nominates immigrants for their ability to contribute to the local economy.

The introduction and growing use of the Canadian experience class and the provincial nominee program in the 2000s has caused a shift in the distribution of economic immigrants accounted for by each program. Since their inception, the Canadian experience class and provincial nominee program have generally accepted more immigrants each year, and the share of economic immigrants admitted to Ontario under these categories reached a combined 49.0 per cent in 2016-2021.[19] The share of economic immigrants admitted to Ontario as skilled workers and skilled trades workers declined from around 84 per cent over the 1980 to 2010 period to 37.7 per cent in 2016-2021.[20] Likewise, the share of economic immigrants admitted under business programs declined from 11.3 per cent in the 1980s to 2.5 per cent in 2016-2021.

4. Immigrants’ participation in the labour market

Recent immigrants are faring better in the labour market, but challenges persist

Statistics Canada’s Labour Force Survey (LFS) shows that recent immigrants tend to experience less favourable labour market engagement than non-immigrants, with lower workforce participation and higher unemployment rates. However, the relative labour market performance of newcomers has generally improved in the past decade, reflecting in part policy changes that have resulted in a higher share of recent immigrants with higher education and Canadian pre-admission work experience that are associated with an earnings advantage.[21]

Labour force participation

The labour force participation rate[22] of immigrants in Ontario has been historically lower than that of non-immigrants.[23] Over the 2006 to 2022 period, the labour participation rate for all core working age (25-54 years) immigrants averaged 83.6 per cent, lower than the 88.0 per cent average for non-immigrants.[24] The gap in the participation rate between immigrants and non-immigrants has fluctuated over this period. Notably, during the pandemic, the participation rate of recent immigrants (landed five years or less) increased significantly, reaching a record 85.6 per cent[25] in 2022, compared to 89.1 per cent for non-immigrants.

The labour participation rate varies significantly depending on length of time in Canada, with recent immigrants experiencing lower participation rates. The average participation rate of recent immigrants over the 2006 to 2022 period was the lowest at 75.6 per cent, while for established immigrants (landed more than 10 years) it was much higher at 86.1 per cent, closer to that of non-immigrants.

Unemployment rate

At the same time, the unemployment rate of immigrants in Ontario remained consistently higher than that of non-immigrants. Over the 2006 to 2022 period, the unemployment rate for all core working age immigrants averaged 7.4 per cent, more than two percentage points higher than the 5.2 per cent average unemployment rate of those born in Canada. Similar to labour participation rates, the unemployment rate varies significantly depending on length of time in Canada, with established immigrants experiencing lower unemployment rates. The average unemployment rate of recent immigrants in 2006-2022 was the highest at 11.6 per cent, while for established immigrants it was much lower at 6.4 per cent, closer to that of non-immigrants.

The unemployment rate of immigrants trended downward in the 2010s until the COVID-19 pandemic, with the difference compared to non-immigrants narrowing. Over the 2006 to 2014 period, the unemployment rate of core working age immigrants averaged 8.2 per cent, or 2.7 percentage points higher than the average for non-immigrants (5.5 per cent). From 2015 to 2019, a period of relative strength in Ontario's labour market, the average unemployment rate of core working age immigrants was 5.9 per cent, closer to the 4.6 per cent average for those born in Canada.

With the onset of the pandemic, the unemployment rate of all core working age immigrants jumped from 5.3 per cent in 2019 to 9.6 per cent in 2020 and has since declined to 5.5 per cent in 2022. For recent immigrants, their unemployment rate declined from 12.6 per cent in 2020 to 8.3 per cent in 2021, but then increased to 8.8 per cent in 2022. This increase in 2022 was due to a sharp increase in new immigrant entrants into the labour force (21.2 per cent), which outpaced their employment gains (20.6 per cent).

Qualifications

A high overqualification rate could signal underutilization of immigrant talents in the labour market and reflect overrepresentation in certain sectors.[27] Overqualification can also adversely impact the long-term career paths, earnings, skills, and life satisfaction of immigrants.[28] In addition to this challenge, foreign credential recognition can be a major labour market barrier immigrants face, especially for occupations with long and complex certification processes such as health care and engineering.[29]

Distribution of recent immigrants across industries has shifted towards service sectors and professional occupations

The distribution of immigrant employment across Ontario’s various industries can reflect many factors, including the state of the province’s labour market, the skills of immigrants at the time of arrival, the impact of increasing job experience immigrants attain the longer they are employed, as well as policy changes. In the 2021 Census, around 83 per cent of core working age immigrants and 80 per cent of non-immigrants were employed in the services sector, while 17 per cent and 20 per cent worked in the goods sector, respectively, although there was variation by specific industry.[30] Industries with a higher distribution of immigrants than non-immigrants included professional, scientific and technical services (4.2 percentage points higher), transportation and warehousing (3.5 percentage points higher), and finance and insurance (3.0 percentage points higher). At the opposite end, industries with a lower distribution of immigrants than non-immigrants included public administration (4.5 percentage points lower), education (3.9 percentage points lower) and construction (2.3 percentage points lower).

The industrial distribution of immigrant employment has shifted over time. The distribution of core working age immigrants who landed in 2016-2021 employed in the professional, scientific and technical services sector was 7.7 percentage points higher than the share who landed in 1980-1989 working in the same industry, followed by transportation and warehousing (2.0 percentage points higher) and accommodation and food services (2.0 percentage points higher). Conversely, the distribution of immigrants who landed in 2016-2021 employed in public administration was 4.6 percentage points lower than the share of established immigrants working in the same industry, followed by health care and social assistance (2.9 percentage points lower) and manufacturing (2.3 percentage points lower). Overall, 83 per cent of immigrants who landed in 2016-2021 worked in the service sector, higher than the 79 per cent of immigrants who landed in the 1980s.

In addition to the higher concentration of recent immigrants working in services-producing industries, the proportion of immigrants holding professional occupations is higher among recent immigrants.[31] Based on the 2021 Census, 31.2 per cent of core working age immigrants who landed in 2016-2021 held professional occupations, higher than the 25.5 per cent of immigrants who landed in 2011-2015 and the 23.5 per cent of non-immigrants. In contrast, since integration into the labour market can take time, the share of recent immigrants in management occupations (10.8 per cent) was lower than that of established immigrants (15.5 per cent) and non-immigrants (14.1 per cent). The share of recent immigrants in occupations usually requiring community college education or apprenticeship (29.5 per cent) was also lower than that of established immigrants (35.2 per cent) and non-immigrants (38.2 per cent), likely explained by changes in admission criteria in favour of higher educational attainment.[32]

5. Wages of immigrants in Ontario

New immigrants’ wages have improved in recent years

Over the 1982 to 2020 period, the real median wage[33] of new immigrants (who have been in Canada for one year, are employed and earn wages) increased at an average annual rate of 0.8 per cent, faster than the 0.4 per cent gain for the total population.[34] As a result, the difference in median wages between new immigrants and the total population narrowed from $10,700 (in 2020 constant dollars)[35] in 1982 to a low of $6,200 in 2019 before widening modestly afterwards. In comparison, the median wage of established immigrants (15 years after admission) was similar to the total population over the 1996 to 2016 period.

The wage gains of immigrants have not occurred evenly over this period, and the difference compared to the wages of the total population has fluctuated. The gap between the median wage of new immigrants and the total population widened in the 1990s and 2000s due to labour market challenges during recessions,[36] as well as lower returns to immigrants’ foreign work experience and the changing source country composition of the labour force.[37] However, the gap between the median wage of new immigrants and that of the total population narrowed rapidly in the late 2010s as labour market conditions recovered and policy changes in immigration selection improved the employment outcomes of immigrants.[38]

Established immigrants earned higher median wages than non-immigrants

As of the 2021 Census, which measures income earned in 2020, the median wages of total core working age immigrants in Ontario was $48,400, lower than that of non-immigrants ($56,000).[39] While the median wage of core working age immigrants who landed in 1980-1990 was higher than that of non-immigrants at $61,600, it was lower for immigrants who arrived after 1990.

Comparing the median wages of immigrants with non-immigrants in the same age group shows noticeable gaps upon arrival, especially at older ages. Among those who arrived in 2016-2019, the median wage of immigrants aged 25-34 years was $40,800 in 2020, $2,800 lower than the median wage of non-immigrants in the same age group ($43,600).[40] At older age groups, this gap was much larger, reflecting the longer time in the Canadian labour market for non-immigrants, which tends to be associated with higher wages. For example, the median wage of recent immigrants aged 45-54 who arrived in 2016-2019 was $33,200 in 2020, less than half the earnings of non-immigrants in the same age group ($67,500).

However, over time, the median wage gaps between immigrants and non-immigrants narrowed or in some cases were. Established immigrants, who generally would have longer periods of employment in the Canadian labour market or obtained education in Canada, had smaller wage gaps or higher wages compared to their non-immigrant counterparts. For example, immigrants aged 25-34 years in 2021 and who landed in the 1980s, many of whom would have arrived as children and received education in Canada, earned noticeably higher median wages in 2020 ($59,200) than non-immigrants in the same age group ($43,600). Among all established immigrants, only those aged 45-54 in 2020 had lower median wages compared to non-immigrants of the same age.

The median wage of female immigrants was significantly lower than male immigrants in all core working age groups and periods of settlement. The largest difference[41] was observed for females in the 35-44 age group who landed in 2016-2019 and earned 41.9 per cent less than the median wage of immigrant male counterparts. Possible explanations for the gender wage gap among immigrants include the motherhood penalty experienced by women in their 30s,[42] a higher incidence of part-time employment and differences in occupation,[43] and poorer outcomes from recessions.[44]

Immigrants with higher education and who studied in Canada earn higher median wages

Past trends in earnings of immigrants by education level generally show that university degrees provide a significant earnings advantage over less education.[45] In the 2021 Census, immigrants with a bachelor’s degree or higher earned the highest median wage among immigrants for all periods of settlement. Among core working age immigrants who landed in 1980-1990, those with a bachelor’s degree or higher had a median wage of $90,000, more than double the earnings of those with no certificate, degree or diploma ($41,600).[46] Among recent immigrants who arrived in 2016-2019, the most highly educated had median wages of $49,200, also more than double the median wage of those with the lowest educational attainment ($23,000).

For immigrants with postsecondary education, the median wage of those with a bachelor’s degree or higher compared most favourably to non-immigrants for most periods of settlement. Among workers with a bachelor’s degree or higher, the median wages of core working age immigrants who landed in 1980-1990 were 20.0 per cent higher than for non-immigrants in 2020. As well, the median wage of established immigrants with college or other non-university certificate or diploma who landed in 1980-1990 was 9.3 per cent higher than for non-immigrants with equivalent credentials. Conversely, the median wage of immigrants with apprenticeship, trades certificate or equivalent did not catch up to non-immigrants for all periods of settlement.

In addition to higher education, Canadian-acquired education also positively affects immigrants’ labour market earnings.[47] The 2021 Census showed significant differences in the median wage of immigrants in Ontario based on their location of study and educational background. For all core working age immigrants with postsecondary education, those who studied in Canada had median wages of $59,200 in 2020, higher than the $49,200 for immigrants who studied outside Canada.[48]

Immigrants admitted under the Canadian experience class earned the highest median wage among economic immigrants

Among economic immigrants admitted under worker programs[49] and the provincial nominee program, recent immigrants of the Canadian experience class consistently earned the highest median wage since the data became available, at $60,100 one year after admission in 2020.[50] Immigrants admitted under the Canadian experience class have also had median wages one year after admission well above that of the total population over the past decade.

One year after admission, the median wages of economic immigrants admitted in the skilled worker and skilled trades category and the provincial nominee program were below the median wage of the total population over the 1990 to 2010 period. However, these groups have since experienced strong wage growth, and by 2020, skilled workers/trades workers earned a median wage of $42,200 and provincial nominees’ median wage reached $41,500, both modestly higher than that of the total population. Changes in the selection process to target highly skilled immigrants and increased emphasis on pre-admission experience likely helped improve the median wage of skilled workers/trade workers and provincial nominees in the 2010s.[51]

The gap in earnings across admission categories widened after a longer period of settlement. For example, the median wage of Canadian experience class immigrants five years after admission was $82,500 in 2020, higher than for skilled workers/trades workers ($66,700), provincial nominees ($60,000) and caregivers ($35,300).

The gaps in median wages across admission categories also reflect differences in the distribution of immigrants across occupations. In the 2021 Census, 62.2 per cent of Canadian experience class immigrants of core working age who landed in 2016-2021 held management or professional occupations,[52] higher than the 53.8 per cent of provincial nominees.[53] The differences in the distribution widened after a longer period of settlement, with 67.4 per cent of Canadian experience class immigrants who landed in 2011-2015 holding management or professional occupations in 2021 compared to 52.4 per cent of provincial nominees.

Another factor in the median wage gaps across admission categories is the role of Canadian pre-admission work experience in improving adaptation to the labour market[54] and as a predictor of better earnings for immigrants.[55] Specifically, immigrants who have both Canadian work and study experience before being admitted to Canada as permanent residents have higher labour market earnings. For example, immigrants with both work and study experience prior to obtaining permanent resident status earned the highest median wage in 2020 ($62,200, five years after admission), followed by those with only work experience ($44,500) and immigrants with only study experience ($30,100).[56] The wage advantage of having pre-admission Canadian experience widened with a longer period of settlement. Immigrants with pre-admission work and study experience had the highest median wage 10 years after admission ($72,500), more than twice the median wage of immigrants with no pre-admission experience ($33,000).

6. Settlement and wages of immigrants in Ontario’s major cities

A disproportionately large share of immigrants coming to Ontario settled in Toronto

The share of immigrants settling in Toronto,[57] the most populous Ontario Census Metropolitan Area (CMA),[58] has been disproportionately larger than the distribution of the Canadian-born population residing there. For example, in 2021, 67.0 per cent of immigrants to Ontario who arrived in 2016-2021 lived in Toronto, far larger than the 32.1 per cent share of the province’s total non-immigrant population residing in the area.[59] In contrast, the share of immigrants who settled in other CMAs[60] and the area outside of CMAs has been less than the share of the province’s total non-immigrant population residing in those areas.

Notably, the share of immigrants residing in Toronto was lower among recent immigrants than established immigrants. Of the established immigrants who landed in the 1990s, 74.4 per cent resided in Toronto in 2021, 7.4 percentage points higher than the share of recent immigrants who landed in 2016-2021. Over the same periods, a higher share of recent immigrants compared to established immigrants resided in Ottawa-Gatineau (+2.1 percentage points), Kitchener-Cambridge-Waterloo (+1.8 percentage points), London (+1.5 percentage points) and Hamilton (+0.6 percentage points).

Several factors determine the initial destination of immigrants, including immigration category, country of birth and employment opportunities.[61] Economic immigrants strongly favour settling in the most populous cities, and after their initial decision, tend to remain in these urban centres.[62] However, immigrants will move within Canada after their initial settlement. On average, among the 2007-2020 group of immigrants, 94.1 per cent stayed in Ontario one year after admission, declining to around 91 per cent remaining after a decade in the province.[63] Within Ontario, after 10 years of settlement, Toronto had the highest average retention rate[64] with 82.1 per cent of immigrants remaining in the city, trailed by Ottawa-Gatineau (69.1 per cent) and Kitchener-Cambridge-Waterloo (63.7 per cent), while Peterborough experienced the lowest retention rate (42.6 per cent).

Core working age immigrants in all Ontario major cities earned lower median wages than non-immigrants

In the 2021 Census, immigrants in all Ontario CMAs earned a lower median wage than non-immigrants. Out of all Ontario CMAs, core working age immigrants in Ottawa-Gatineau earned the highest median wage in 2020 ($55,600 vs. $67,000 for non-immigrants), trailed by Oshawa ($54,000 vs. $57,600 for non-immigrants) and Greater Sudbury ($51,600 vs. $57,600 for non-immigrants). Immigrants in St. Catharines-Niagara earned the lowest median wage ($36,800 vs. $44,800 for non-immigrants), while immigrants in Toronto earned $48,000 (vs. $60,400 for non-immigrants).[65]

The gap in median wage between core working age immigrants and non-immigrants was the widest in Windsor (immigrants earned 21.6 per cent less than the non-immigrant median wage), followed by Toronto (20.5 per cent less) and St. Catharines-Niagara (17.9 per cent less). These outcomes could reflect differences in local labour market conditions, immigration categories and the industrial distribution of immigrant employment, among other factors.

The median wage of immigrants in all CMAs increased with a longer history of settlement. The largest difference[66] in wages between recent immigrants of core working age who landed in 2016-2019 and established immigrants who landed in 1980-1990 was observed in Kingston (established immigrants earned 105.8 per cent more than the median wage of recent immigrants), followed by Greater Sudbury (94.4 per cent more) and Ottawa-Gatineau (86.9 per cent more). Conversely, the smallest difference was observed in Oshawa (35.4 per cent more), reflecting its relatively high median wage of recent immigrants.

7. Appendix

About this document

Established by the Financial Accountability Officer Act, 2013, the Financial Accountability Office (FAO) provides independent analysis on the state of the Province’s finances, trends in the provincial economy and related matters important to the Legislative Assembly of Ontario.

This report was prepared by Jay Park under the direction of Paul Lewis. Edward Crummey, Zohra Jamasi, Yefei Zhang and Andy Zhu contributed to this report.

The content of this report is based on information available to October 6, 2023. Background data used in this report are available upon request.

In keeping with the FAO’s mandate to provide the Legislative Assembly of Ontario with independent economic and financial analysis, this report makes no policy recommendations.

Graphical Descriptions

Footnotes