Maple News reports that immigrants with university degrees in science, technology, engineering, and mathematics (STEM) fields in the United States experience better employment outcomes and higher earnings compared to their counterparts in Canada, according to a recent study by Statistics Canada.
The study examined the economic trajectories of immigrants aged 25 to 64 who held at least a bachelor’s degree in a STEM discipline. Using 2016 data for Canada and data from 2015 to 2017 for the U.S., researchers found that while both countries rely heavily on highly educated immigrants to support their STEM workforces, significant differences exist in how those talents are utilized.
In both countries, immigrants are about twice as likely as native-born workers to hold a STEM degree, and more than three times as likely to have specialized in engineering, computer science, or mathematics. Despite these qualifications, challenges remain—particularly in Canada—when it comes to full utilization of these skills.
Notably, over 50% of STEM-educated immigrants in both countries are employed in non-STEM occupations. While this isn’t inherently negative—STEM skills can be valuable across industries—Canada shows a troubling pattern: only one in five STEM-educated immigrants working outside their field is in a job that actually requires a university degree. In contrast, nearly half of similarly placed immigrants in the U.S. attain jobs aligned with their educational level.
Income disparities further highlight these issues. STEM-educated immigrants in Canada earn on average 25% less than their Canadian-born peers, while the earnings gap in the U.S. is negligible. Even among those employed in STEM roles, immigrants in Canada earn 17% less than Canadian-born workers, whereas in the U.S., foreign-born STEM professionals earn about 4% more than locals.
For STEM-qualified immigrants working outside the field, the income gap in Canada widens further—these individuals earn about 34% less than Canadian-born workers with the same qualifications. In the U.S., this wage gap shrinks to just 7%, indicating a more effective integration of immigrant talent into the broader economy.
Statistics Canada highlights five possible reasons for these disparities, though more research is needed to establish concrete explanations. Factors likely include labor market barriers, credential recognition issues, and differing immigration and employment policies between the two countries.
As nations worldwide compete for high-skilled talent, how effectively countries integrate STEM-educated immigrants into their economies is a key measure of long-term economic success. Canada’s immigration system positions it well to attract global talent, but Maple News notes that improving labor market outcomes remains a crucial challenge.
Maple News will continue to follow and report on immigration policy developments that impact skilled professionals in Canada and abroad.