New Research Shows Temporary Status Leads to Higher Immigrant Incomes
New Data Shows Immigrants with Temporary Status Before Permanent Residency Earn Up to 50% More in Most Categories
Did you know that your path to becoming a permanent resident in Canada can significantly affect your income? New research from the LMLIP's Fact Sharing Work Group reveals that immigrants who spent time in Canada as temporary residents before becoming permanent residents earned substantially more money than those who arrived directly as permanent residents.
This finding challenges common assumptions about the "best" way to immigrate to Canada. It provides valuable guidance for newcomers planning their journey and the professionals supporting them.
The Full Picture
The Work Group analyzed data for different immigrant categories in London, including family-sponsored immigrants, economic immigrants (principal applicants and their spouses/dependents), and refugees.
Their research uncovered a dramatic shift in immigration patterns and outcomes. In 2021, London saw a record number of landed immigrants with pre-admission experience (temporary residence before permanent status). These immigrants earned significantly higher incomes in almost all categories compared to those who arrived directly as permanent residents.
From 2012 to 2019, most immigrants in London became permanent residents without prior Canadian experience. However, in 2020 and 2021, this pattern completely reversed, with far more immigrants following a "two-step" path through temporary status first.
This trend is specific to London but mirrors larger national patterns. By 2025, Canada's immigration policy formally embraced this approach, with over 40% of permanent resident spots reserved for those already in Canada temporarily.
The economic advantage is substantial. Family-sponsored immigrants with pre-admission experience earned $36,500 on average, compared to just $23,100 for those without it. Refugees with pre-admission experience earned $22,400 versus just $14,300 for those without it.
Settlement Services in the Two-Step Era
This research has significant implications for how settlement organizations in London serve newcomers:
Different service needs: Immigrants with pre-admission experience typically need less help with basic orientation to Canadian systems but may benefit from more advanced career development support.
Targeted supports: The stark income differences between groups suggest that more intensive employment preparation may be needed for those arriving directly as permanent residents.
Family impacts: Higher incomes mean better housing options, less financial stress, and more educational opportunities for children—all factors contributing to successful settlement.
What Makes the Difference?
Several factors explain why immigrants with pre-admission experience earn more:
Canadian work experience: Employers value experience in Canadian workplaces
Professional networks: Time spent in Canada allows immigrants to build valuable connections
Language development: Working or studying in Canada improves communication skills
Credential recognition: Pre-admission experience helps overcome barriers to recognizing foreign qualifications
All four of these points are significant systemic barriers newcomers experience when seeking employment. These are the types of barriers the LMLIP looks for resources to overcome. Many settlement organizations in the city work tirelessly to address these barriers.
Looking Forward
This research suggests that a strategic approach to immigration may lead to better economic outcomes. For those with options, spending time in Canada as a temporary resident before applying for permanent status could be a wise investment in future earning potential.
The fastest path to Canada isn't necessarily the most profitable one. Taking a 'stepped' approach through temporary status first might take longer but often leads to much stronger economic integration.
More Detailed Findings
The data shows that the gap was widest in 2016 when 1,800 tax filers among immigrants without pre-admission experience outnumbered those with temporary residence status by nearly three times. By 2021, the trend had completely reversed, with pre-admission experience immigrants outnumbering direct permanent residents by almost four times.
The only exception to the higher income pattern was among economic immigrant principal applicants, where those without pre-admission experience earned slightly more ($52,400 vs. $49,600). However, even in this category, the difference was comparatively small compared to the substantial advantages seen in other groups.
How to Use This Information
For settlement workers and immigration consultants:
Consider discussing the potential economic benefits of a two-step immigration approach with clients
Develop differentiated service programs for clients with and without pre-admission experience
Advocate for policies that acknowledge these different needs and outcomes
For individuals planning immigration:
When possible, consider pathways that include Canadian work or study experience before permanent residency
Understand that temporary status, while sometimes challenging, may lead to stronger long-term economic outcomes
Recognize that different immigration categories show different patterns of benefit from pre-admission experience
The London & Middlesex Local Immigration Partnership continues to analyze immigration trends and outcomes to help create a more welcoming community and better support newcomers. This Matter of Facts research highlights how data-driven insights can lead to more effective settlement strategies and policies.
For the complete Matter of Facts report, click here.