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Income gap between new immigrants and all Canadians shrunk by half in four years: PBO

A new report from the parliamentary budget officer finds the gap between the average incomes of new immigrants and all tax filers has narrowed significantly.

The report finds the median income of new immigrants was about 78 per cent of the median income made by all tax filers in 2018, compared with 55 per cent in 2014.

New immigrants include those who have been permanent residents for one year.

The PBO says the trends coinciding with this change include greater Canadian work experience, more immigration from South Asia and greater family connections in the country.

The report also finds new immigrants with professional jobs such as engineers and applied scientists made significant gains in particular.

The PBO estimates that if the income gap were to be completely eliminated, productivity growth in Canada could rise by as much as 0.21 percentage points.