Two-step immigrants in Canada outearn one-step newcomers

A recent report from Statistics Canada compared the earnings of one-step and two-step economic immigrants. The study found that two-step immigrants, selected from temporary foreign workers and international students with Canadian work experience, consistently earn more than one-step immigrants, even after a decade of arrival. This gap remains after adjusting for sociodemographic differences. The proportion of immigrants with pre-landing Canadian work experience increased from 12% in 2000 to 78% in 2021, improving immigrant economic outcomes. Two-step immigrants, especially those in high-skilled jobs, had better labour market outcomes due to employers’ ability to assess skills, directly leading to a better skill-job match. This process also reduces skill transferability issues often faced by one-step immigrants.