(Ottawa) A new report from the Parliamentary Budget Officer (PBO) reveals that the gap between the average incomes of new immigrants and those of all taxpayers has narrowed considerably.

The report found that the median income of new immigrants was about 78% of the median income of all taxpayers in 2018, up from 55% in 2014.

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

The PBO says trends that coincide with this shift include more work experience in Canada, greater immigration from South Asia and closer family ties to the country.

The report also reveals that new immigrants in engineering and applied science occupations in particular have made significant gains.

The PBO estimates that if the income gap were completely eliminated, productivity growth in Canada could increase by up to 0.21 percentage points.