International students who graduated in 2020 and remained in Canada faced lower employment rates and earnings than their Canadian counterparts three years after graduation, according to new data from Statistics Canada.
The study, which examined the early labour market outcomes of 83,300 international student graduates, found that 88.6% were employed in 2023, compared with 91.0% of Canadian graduates from the same cohort. The difference was more pronounced at higher education levels, with international graduates of bachelor’s, master’s, and doctoral programs less likely to be employed than their Canadian peers.
At the bachelor’s level, 84.5% of international student graduates were employed in 2023, compared with 91.9% of Canadian graduates. Employment gaps were also seen among master’s and doctoral graduates, with international student employment rates at 91.3% and 90.6%, respectively, compared to 94.6% and 94.2% for Canadian graduates. Among college graduates, no significant difference was found.
The study also highlighted disparities in job matching and earnings. International students with a bachelor’s or master’s degree were less likely to work in positions requiring their level of education. Only 36.6% of international student graduates with a bachelor’s degree secured jobs that typically required a university degree, compared with 58.8% of Canadian graduates.
Income differences were also evident. International student graduates working full-time earned less across all education levels, with the largest gap at the bachelor’s and master’s levels. The median annual income for international student graduates with a bachelor’s degree was $52,000, about 20.2% lower than the $65,200 median income for Canadian graduates. The study noted that part of this gap was due to international students being over three times more likely to work in sales and service occupations.
Despite these challenges, international student graduates reported similar overall job satisfaction levels to Canadian graduates (81.0% versus 82.0%) and comparable perceptions of job security. However, they expressed lower satisfaction with their salaries. Among bachelor’s degree holders, 48.7% of international student graduates were satisfied with their earnings, compared with 58.0% of Canadian graduates.
The findings provide insight into the challenges international students face in transitioning to the Canadian labour market, particularly in securing jobs aligned with their education and earning competitive wages.
