Immigrants Bringing Unprecedented Economic Impact

A groundbreaking report from CIBC Capital Markets reveals that immigrants are delivering "more bang for the buck" in Canada’s economy. This thrilling news shines a light on how prior experience of newcomers, especially those who have lived and worked in Canada before, is significantly improving their earning potential.

A Shift in Immigration Trends

Looking ahead, the Canadian government aims to welcome 395,000 permanent residents in 2025, scaling back from the 495,000 target for 2024. This reduction marks a shift from recent years of soaring immigration numbers, which have surged past those of many other OECD countries.

Stunning Earnings Growth for Newcomers

CIBC's deputy chief economist, Benjamin Tal, highlights that the earnings of new permanent residents are at an all-time high. Those who became permanent residents in 2012 reported average earnings between $45,100 and $63,500 for the 2022 tax year. In contrast, newcomers arriving in 2020 achieved similar income levels in under two years!

A Changing Landscape for Immigration

Tal challenges the traditional perception of immigration, noting that the landscape has shifted dramatically. "The typical view includes economic immigrants, family members, and refugees coming from outside Canada. Today, that narrative is evolving," he states.

Majority of New Approvals Are Residents

In a significant trend, over 50% of the 483,640 permanent resident visas approved in 2024 were granted to individuals already living in Canada. This proportion has increased from 39% in 2019, reflecting a growing trend where new approvals don't intensify pressure on housing, healthcare, and other essential services.

A Positive Outlook for Canadian Society

Tal emphasizes that this rise in domestic approvals is a hopeful sign, stating, "Canadian resident permanent resident approvals do not add to the strain on housing and infrastructure demands, unlike those arriving from abroad." This could suggest a more sustainable approach to immigration in supporting Canada's social and economic fabric.