The Gap in the Labour Market Performance of Highly Educated Immigrants in Canada Relative to the U.S.- and How to Narrow It
Fraser Institute , Bio and Archives--October 16, 2025
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VANCOUVER—Highly educated immigrant workers in the U.S. perform better when it comes to employment and compensation than their counterparts in Canada, finds a new study published by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“Highly educated immigrants make important economic contributions to the countries they emigrate to, notably through promoting innovation and entrepreneurship—which helps to explain why developed countries compete with one another to attract educated immigrants, particularly those trained in STEM (Science, Technology, Engineering and Math) fields,” explained Jock Finlayson, senior fellow with the Fraser Institute and co-author of The Gap in the Labour Market Performance of Highly Educated Immigrants in Canada Relative to the U.S.- and How to Narrow It.
Critically, highly educated and skilled immigrants fare much better in the U.S. than in Canada, as the study compares the economic performance of native-born to immigrants in both countries with respect to employment levels and compensation.
The study found that in Canada, highly-educated immigrants make 16.0 per cent less than comparable native born Canadians and have a 9.5 per cent lower rate of employment. However, in the United States, highly educated immigrants have a slightly higher rate of employment than native born Americans (1.2 per cent) and enjoy markedly higher compensation (+8.0 per cent).
“The evidence suggests that the U.S. offers greater opportunities and rewards than Canada, and therefor is better positioned to attract the most productive highly-educated and skilled immigrants,” said Steve Globerman, senior fellow at the Fraser Institute and co-author of the study.
“For Canada to more successfully compete for the ‘best and brightest’ global talent, policies to improve immigrant selection and to create a more dynamic and productive Canadian economy will be necessary.”
Media Contact:
Jock Finlayson, Senior Fellow, Fraser Institute
Steven Globerman, Senior Fellow, Fraser Institute
To arrange media interviews or for more information, please contact:
Drue MacPherson, Fraser Institute
604-688-0221 poste 721
drue.macpherson@fraserinstitute.org
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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 86 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit fraserinstitute.org.
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