International graduates found to earn less than Canadian peers

Average earnings of international graduates in full-time employment were 20% lower than their Canadian counterparts in 2023, according to a report from Canada’s national statistics agency.  

Among bachelor’s degree holders, the difference can be explained by the fact that international graduates were over three times more likely to work in lower-paid sales and service jobs, suggested the report’s author, Brittany Etmanski.  

“However, [this] does not necessarily explain the difference in income observed at the master’s and doctoral levels,” wrote Etmanski, highlighting that a large proportion of international graduates at this level worked in the natural and applied sciences, where incomes are higher than average.  

Indeed, nearly half of international graduates with a master’s or doctorate were employed in the natural and applied sciences in 2023, compared with roughly one-fifth of Canadian graduates of the same level.  

Domestic students were dispersed across a wider range of fields, with the highest proportion (23%) employed in education, law and government, compared to just 7% of international graduates.

Experts have said that when comparing international and domestic graduates from the same institutions, there is little difference in average earnings, and that discrepancies could be the result of pulling nationwide data from colleges, universities and public-private partnerships that have been accused of only enrolling international students.  

The study examines job outcomes of international and domestic graduates in 2023, focusing on the graduating class of 2020.  

It covers over 83,000 international students living in Canada three years after graduation, who comprised nearly a quarter of all 2020 graduates.  

Overall, the vast majority were in employment three years after graduation, though the rate was slightly lower for international students (88.6%) than their domestic counterparts (91%).  

Average earnings of international graduates in full-time employment were 20% lower than their Canadian counterparts in 2023

Statistics Canada

International graduates with a college diploma or doctorate were just as likely as Canadian graduates to work in a job matching their level of education.  

However, 37% of international graduates from bachelor’s programs held a job that typically requires a university degree, compared to 59% of domestic graduates, with a similar trend seen at master’s level.  

Though the report’s income findings are consistent with past research, it highlights that the graduating class of 2020 faced “unique challenges” due to the pandemic. 

More than half experienced changes to their employment status or plans, and nearly one-third lost their jobs in 2020. 

Prior to Canada’s implementation of study permit caps in January 2024, international student numbers more than doubled from 2010 – 2019.  

Last year, the government introduced new rules surrounding the post-graduation work route to bring in tighter restrictions on which college programs qualify for the pathway based on labour market shortages.   

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