Coming Soon: More permanent residency pathways for temporary residents in Canada

Canada may offer more permanent residence pathways to temporary residents (e.g. international students, temporary foreign workers, and asylum seekers) who are currently in the country.

In 2020, COVID-19 pandemic has turned the tables around the world, may it be developed, developing or underdeveloped economies. Every country is having a hard time keeping their economies afloat, given travel restrictions and disruption in supply chains globally.

The Coronavirus pandemic is affecting birth rates worldwide and high-income countries like Canada are expected to see declining fertility rates, resulting in a smaller population size and rapidly increased greying of Canada. Canada has been feasting on immigrants for years as they compensate for the negative economic and fiscal impact created by the aging population and decline in birth rates. This will have a strong impact on the labor market and to ensure long-term economic recovery, the federal and provincial governments need to keep immigration ️as a priority to support this decline.

COVID-19 has impacted pre-determined immigration level targets of Canada, both permanent and temporary residents have dropped significantly, along with this unemployment is prevalent and the economy is falling. To support the economy and to meet the necessary labor market needs in terms of workforce availability, Canada needs immigrants as their impact on Canadian economy is profound.

Helping temporary residents become permanent residents will address Canada’s needs to respond to COVID-19 and will benefit Canada in the long term because candidates who already have Canadian experience tend to have strong labor market outcomes. Temporary residents like international students and temporary foreign workers already possess Canadian work experience, have already settled in, and have high English or French language ability, which leads to quicker labor market integration, solving economic and labor market needs.

Canada reaffirms their ongoing commitment towards immigration especially international students and global talent as Canada continues to count online study at DLI towards eligibility for PGWP between May 2020 to April 2021. During the tenure of post-graduation work permit, international students gain necessary Canadian work experience to qualify for permanent residency through economic immigration programs.

Immigrant-focused financial recovery plans should be at the forefront of Canada’s post-pandemic goals to offset the temporary decline in immigration and to ensure long term recovery.

Statistics Canada: CEC and PNP immigrants are better in Canadian job market

According to a study conducted by Statistics Canada & IRCC, CEC  and PNP immigrants are fare better than FSWP and QSWP in the job market as they have an edge due to Canadian work experience and pre-arranged employment from working as temporary foreign workers before obtaining permanent residency in Canada.

Economic immigration consists of numerous programs, including the Federal Skilled Worker program (FSWP), Provincial Nominee Program (PNP) and Canadian Experience Class (CEC). These programs help to select permanent residents based on the candidate’s potential ability to perform in the labour market. These programs are administered differently, have separate processes and selection criteria. During the initial years after immigration CEC and PNP immigrants have higher employment rates and earnings than FSWP immigrants although after five years of immigration PNP immigrants have lower earnings than CEC or FSWP immigrants.

Reason why PNP and CEC candidates fair better in Canadian job market?

The temporary foreign workers get a taste of real life in Canada before committing themselves and their families towards moving to Canada permanently by uprooting their lives in their home countries. This helps them to acclimatize in Canadian culture and perform better than other economic immigrants in the country.

In addition, immigrants with Canadian experience have significant benefits in labour market outcomes over immigrants without Canadian work experience, especially when it comes to high earning positions as many temporary foreign workers were international students in Canada who obtained a Post-Graduate Work Permit (PGWP) and have lived in the country for quite a few years before becoming a permanent resident. During this time, they not only improve their language proficiency but also develop the skills the Canadian employers are looking for.

The benefits of studying in Canada are endless, including obtaining a high-quality education, gaining Canadian work experience as well as having improved outcomes after becoming permanent residents of Canada as opposed to candidates from FSWP or QSWP. This is evident as 93% of immigrants selected from the PNP and 95% of immigrants selected from the CEC found employment in the first full year after becoming Canadian permanent residents, while only 80% for candidates under FSWP were employed for the first full year.

After becoming permanent residents in the first full year CEC immigrants earned 56 per cent more than FSWP candidates and this gap diminished over time as in the fifth year CEC immigrants earned 30% more than FSWP  immigrants. Similarly, PNP immigrants also earned higher than FSWP in the first year while by the fifth year their earnings substantially decreased. This is because PNP immigrants tend to have slow earnings growth as they are more likely to be selected for low-skilled or medium-skilled jobs. Nevertheless, FSWP immigrants easily get integrated into the Canadian labour market as they possess essential traits such as high language proficiency and education levels.

Labour market outcomes of Canadian work experience as opposed to pre-arranged jobs

Pre-arranged employment and work experience are among the valuable assets for new immigrants as both are considered as an essential criterion in Canada’s Express Entry system of economic immigration selection. On one hand, pre-arranged employment reflects the employer’s preference more clearly than Canadian work experience. On the other hand, Canadian work experience can better capture the recognized market values of skills than pre-arranged employment.

During the first two years after becoming permanent residents, immigrants with pre-arranged jobs earned 15% more than those without as they had comparative higher income in Canada before becoming permanent residents which is almost double of what immigrants with Canadian work experience earn. Even under Comprehensive Ranking System (CRS) immigration applicants who have a pre-arranged job offer avail 50 to 200 additional points depending on the NOC and seniority of the position offered.

To conclude, prior to immigration, Canadian work experience is a better predictor of immigrant earnings after becoming permanent residents as opposed to having a pre-arranged job.

Half of new skilled immigrants possess Canadian experience

Over the last few years, more immigrants are gaining permanent residence with Canadian work and study experience. As indicated by Statistics Canada, the number of temporary foreign workers and students grew exponentially between the year 2000 and 2018. In 2000, 12% of new economic immigrant principal applicants had worked in Canada before obtaining permanent residency while this share increased to 59% in the year 2018.

The introduction of the Canadian Experience Class (CEC) in 2009 and increasing Provincial Nominee Programs (PNPs) has led to more temporary foreign workers becoming permanent residents of Canada.  In 2018 CEC admitted 20% of all economic-class principal applicants while the Federal Skilled Worker Program (FSWP) and PNPs admitted 25% and 46% respectively.

The advent of Covid-19 pandemic and global travel restrictions have reduced the flow of immigrants to and from Canada, which has increased Canada’s reliability on temporary foreign workers already residing in the country to fulfill their immigration needs. This has also increased the importance of temporary foreign workers in the selection and labour market outcomes of new immigrants in Canada. In 2018, 46% of new economic immigrants were former temporary foreign workers, up from 8% in 2000 according to Statistics Canada.

The “two-step” immigration selection process accounts for the journey of immigrants who arrive in the country as workers or students and then become a permanent resident. In this process

  • Firstly, students or skilled migrants get temporary residence and gain valuable Canadian experience.
  • Secondly, the temporary residents apply for immigration and are selected based on the criteria outlined in Canada’s federal or provincial immigration programs.

This 2-step process improves the match between immigrant skills and labour market demands as employers can directly assess the skills and intangible qualities of the temporary worker. It is evident that the coronavirus pandemic has highlighted potential issues related with dependence on temporary foreign workers, such as labour supply uncertainty, and poor working conditions for employees.

The two-step immigration selection has evolved from 60,000 to 429,300 number of temporary foreign workers between 2000 and 2018.

According to a study conducted by  Statistics Canada, it was discovered that the percentage of new immigrants who were hired in the first full year after immigration rose substantially from 81% to 87% between 2000 to 2016 among men in the age group of 20 to 54 years and among women from 61 % to 67 %. The study also recognized this increase in employment relevant to the growing share of new immigrants with Canadian work experience, who having worked and lived in the country as either temporary foreign workers or international students.

Immigrants who have worked in Canada before immigration had considerable benefits in labour market outcomes over immigrants without Canadian work experience, especially when it comes to high earning positions. Comparably, economic immigrants who landed from 2000 to 2005 and had Canadian experience before immigration earned 4.2 times more than immigrants without Canadian work experience in the first full year after immigration, 2.6 times more in the 5th year, and additional 2.1 in the 10th year.

In a holistic view, immigrants with Canadian experience are finding more employment options and making more annual earnings due to initiatives taken by federal governments in creating more pathways for foreigners with Canadian experience.

Lastly, the COVID-19 pandemic has compelled policymakers to re-evaluate what kind of immigrant workforce the country needs, as people who were previously not considered as highly skilled or essential, are deemed as the frontline workers today.

Express Entry: IRCC invited Canadian Experience Class (CEC) candidates

Immigration, Refugees & Citizenship Canada (IRCC) invited 3,343 candidates to apply for Canadian permanent residence in Express Entry draw which took place on July 23, 2020. The cut-off CRS score in this draw was 445 targeting only Canadian Experience Class (CEC) candidates. IRCC) has now issued a total of 57,700 Invitations to Apply (ITA’s) in 2020 through the Express Entry system.

Current cut-off CRS score of 445 is a decrease of 14 points from the previous all program draw on July 8, 2020.   Yesterday, IRCC issued 557 ITA’s to Express Entry candidates nominated through the Provincial Nominee Program (PNP). The minimum CRS score for these candidates was 687. Provincial Nominee Program (PNP) Candidates receive an additional 600 points in the Comprehensive Ranking System (CRS), which is usually sufficient to trigger an invitation to apply (ITA) at the next round of invitations.

Calculate your CRS score with IRCC’s CRS calculator

Express Entry is the application process for skilled workers in Canada or Overseas who want to settle in Canada permanently. Interested Candidates are required to submit an online application to express their interest by creating Express Entry (EE) profile and, providing information about their skills, work experience, language ability, education and some other details. After submitting the profile, candidates get a score to determine their place in the pool using the point-based system called Comprehensive Ranking System (CRS). The CRS system considers skills, work experience, language ability, education and other factors (e.g. having a sibling in Canada, Canadian education or a valid job offer in Canada, etc.) to award points. Highest ranking candidates from Express Entry pool are regularly invited to apply for Canadian Permanent Residence. Express Entry manages applications for permanent residence under these federal economic immigration programs:

Nearly 110,000 new permanent residents were admitted through Express Entry in year 2019

A total of 109,595 principal applicants and their family members were granted permanent residence through express entry in 2019, compared to 92,229 in 2018. This represents a year over year increase of 19%. The CRS cut off ranged from 438 to 475 in 2019, making an average score of 461. In 2018 the average score was 442. This increase in average CRS cut-off score demonstrates that the express entry pool became more competitive last year. This increase was partially due to a larger pool size, as well as the increased number of candidates selected through a Provincial Nominee Program (PNP). PNP recipients automatically receive an additional 600 CRS points toward their overall score.

How minimum CRS score will fluctuate in next draws?

Despite COVID-19 pandemic, total number of ITA’s issued this year so far exceeds the number of invitations issued at the same time last year.  As per Government of Canada’s Immigration Levels Plan for 2020-2022, Canada aims to welcome 341,000 new permanent residents in 2020, 351,000 in 2021, and 361,000 in 2022. Federal Skilled Worker Program candidates represented the largest proportion of all individuals admitted in 2019 with 58,173 admissions, followed by candidates in Canadian Experience Class (30,230) Provincial Nominee Program (20,014) and Federal Skilled Trades (1,178). After coronavirus travel restrictions, IRCC began to hold PNP and CEC specific draws. First all-program Express Entry draw took place on July 15, 2020 since the start of the coronavirus pandemic.

We had speculated that IRCC will hold program specific draws in consecutive draws and this is evident from today’s draw when only CEC candidates has been invited. There are several factors and reasons (e.g. unemployment rate, travel restrictions, closure of visa processing offices etc.)  why government is preferring CEC and PNP candidates during this pandemic. Unemployment rate in Canada is historically high, and it will be challenging for a new immigrant to find a job in today’s job market, and get settled in new country. Government’s may prefer to restrict influx of new permanent residents coming outside from country. However, to meet the immigration target for  this year, the Government will prefer to invite candidates who are already in Canada.

IRCC may continue to invite only CEC candidates in consecutive draws. This may be good for several candidates in Canada having low CRS scores. Candidates qualified under CEC & having low scores still have an opportunity to get an ITA in coming months.

Contact us for consultation, assessment or assistance!

IRCC invited only PNP candidates in latest express entry draw

A total of 557 candidates who had already received an additional 600 points with a provincial nomination were invited to apply for Canadian permanent residence in the Express Entry draw which took place on July 22, 2020. The cut-off CRS score in this draw was 687 which is lowest CRS requirement for a PNP-specific draw so far in 2020. This is the 9th PNP specific draw since Canada implemented travel restrictions in March this year for stopping spread of coronavirus. IRCC has now invited 54,357 candidates so far this year.

The candidates who received an ITA in this draw had previously received provincial nominations and were awarded an additional 600 points toward their overall score. This means candidates who received an ITA would have needed a CRS score of at least 87 for their human capital without the provincial nomination.

Express Entry is the application process for skilled workers in Canada or Overseas who want to settle in Canada permanently. Interested Candidates are required to submit an online application to express their interest by creating Express Entry (EE) profile and, providing information about their skills, work experience, language ability, education and some other details. After submitting the profile, candidates get a score to determine their place in the pool using the point-based system called Comprehensive Ranking System (CRS). The CRS system considers skills, work experience, language ability, education and other factors (e.g. having a sibling in Canada, Canadian education or a valid job offer in Canada, etc.) to award points. Highest ranking candidates from Express Entry pool are regularly invited to apply for Canadian Permanent Residence. Express Entry manages applications for permanent residence under these federal economic immigration programs:

The Provincial Nominee Class (PNC) allows provincial and territorial governments to choose immigrants according to the economic needs of the province or territory. Nine Canadian provinces and two territories have provincial nominee programs which:

  • establish its own standards and processes by which it chooses its nominees,
  • try to nominate those candidates who would be most likely to settle effectively into the economic and social life of the region.

PNC has two (2) steps

  1. First apply to the province or territory where you want to live and be nominated
  2. After a province or territory nominates you, you must apply to IRCC for permanent residence. An IRCC officer will then assess your application based on Canadian immigration rules.

Each participating province and territory have at least one immigration stream that is connected to the Express Entry system and allows it to nominate Express Entry candidates for permanent residence in that province or territory. Express Entry candidates who are nominated by a province or territory receive an additional 600 points toward their CRS score, moving them to the front of the line for an invitation to apply for Canadian permanent residence.

Contact us for consultation, assessment or assistance!