International graduates in Canada earn 20% less than local peers, study finds

The Statistics Canada study, which examined the labor market outcomes of 83,300 international students who completed postsecondary programs in 2020 and remained in Canada without pursuing further education found that three years after graduation, 88.6% of these international students were employed compared to 91.0% of domestic graduates.

These international students accounted for about 24% of all 2020 graduates in Canada.

A closer look at employment outcomes shows a significant gap for those with a bachelor's degree. While international bachelor's degree holders earn an average of CA$52,000 per year, 20% less than the CA$65,200 earned by Canadian graduates, international students with doctoral degrees secured salaries more comparable to those of local graduates, only 7.8% less.

A wide disparity was noted at the college and masters level, where international graduates earned around CA$45,000 and CA$70,000, 15 and 16.6% less than their local peers.

Avarage annual income of international graduates and Canadian graduates who work full time, by level of study, in 2023.

Brittany Etmanski, the report's author, attributed the lower salaries for international bachelor's graduates to their higher likelihood of working in sales and service occupations, which typically offer lower wages than the national average.

However, income differences at the master's and doctoral levels cannot be fully explained by occupational choices. Nearly half of international graduates at these levels work in high-paying natural and applied sciences fields compared to just one-fifth of domestic graduates.

Some experts also noted that when comparing graduates from the same institution, the income gap between international and domestic students narrows, suggesting that the overall disparity may partly reflect differences among institutions that enroll larger numbers of international students.

The findings align with previous research while underscoring the "unique challenges" faced by the class of 2020 amid the Covid-19 pandemic. More than half of international students altered their employment plans or status during the crisis, and nearly one-third lost their jobs in 2020.

The report comes at a time when Canada is reexamining its immigration policies. Between 2010 and 2019, the number of international students in the country doubled to over 640,000. Following the pandemic, the figure surpassed one million as Canada actively sought foreign workers.

However, in response to pressures on housing, healthcare, and other public services, the government began tightening its immigration policies in January 2024. New measures include limiting study permits and restricting post-graduation work permits, with expectations to issue only 437,000 study permits in 2025, a 10% decrease from the previous year.