Prior experience living and working in Canada are improving incomes for a smaller pool of immigrants, according to CIBC. (GETTY) \u00b7 sockagphoto via Getty Images <\/p>\n
Immigrants to Canada are creating \u201cmore bang for the buck\u201d in the economy, according to a new report from CIBC Capital Markets. Prior experience living and working in Canada are among the factors boosting incomes for a smaller pool of new permanent residents, according to the bank\u2019s deputy chief economist.<\/p>\n
The federal government\u2019s immigration target for permanent residents in 2025 is 395,000, down from its 2024 target of 495,000. The decrease follows years of record-high immigration levels that dramatically outpaced Canada\u2019s global peers in the Organisation for Economic Co-operation and Development (OECD).<\/p>\n
In his report, CIBC\u2019s Benjamin Tal says data from Immigration, Refugees and Citizenship Canada and Statistics Canada show the economic contribution of new permanent residents is \u201cnotably higher than in the past.\u201d<\/p>\n
CIBC found the average earnings for a permanent resident who obtained this status in 2012 was between $45,100 and $63,500 for the 2022 tax year. Meanwhile, those who arrived in 2020 achieved similar incomes in less than two years.<\/p>\n
\u201cToday, permanent residents have a much shorter ladder to climb in order to close the wage gap with Canadian born,\u201d Tal wrote.<\/p>\n
\u201cThe traditional view of immigration is of economic immigrants, family members and refugees, arriving to their new land from outside the country,\u201d he wrote in research published on Tuesday. \u201cHowever, in Canada today, the situation is very different.\u201d<\/p>\n
Of the 483,640 permanent resident visas approved in 2024, Tal notes 252,478, or 50.7 per cent, already resided in Canada. From the start of the year to April, he found that share is 54.6 per cent \u2014 up from 39 per cent in 2019.<\/p>\n
\u201cThat trend is significant,\u201d Tal wrote. \u201cCanadian resident permanent resident approvals do not add to the strain on housing, health, social services, and infrastructure demands, as do permanent resident arrivals from elsewhere.\u201d<\/p>\n
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on X @jefflagerquist<\/a>.<\/p>\n Download the Yahoo Finance app, available for Apple<\/a> and Android<\/a>.<\/p>\n