The Impact of Processing Delays on Canadian Businesses

Canada is facing a growing skilled labor crunch and industries are struggling to find qualified workers. The increased processing times of immigration pathways is a problem that is closing doors to new growth and leaving employers open to risk.

According to a survey conducted by The Canadian Employee Relocation Council (CERC), “Unless addressed, increasing processing times are likely to have a negative impact on business operations within the next year.”

A total of 26 organizations that rely on access to international talent to meet talent needs and fill skills gaps were surveyed. Participating organizations were from technology, manufacturing, government /health care/ education, natural resources, and construction/engineering services. 44 % of participating organizations report using economic immigration programs to access temporary residence workers.

Primarily, 74% of participating companies used Express Entry and CUSMA professional pathways to hire foreign nationals while 67% used PNP immigration pathways. All participating organizations agreed to the importance of international talent to their businesses, while 70% strongly agreed to their contributions.

In the survey, as an impact of processing impediments 83 % of organizations stated that canceled and or delayed projects are the most common consequence of the delays, almost two-thirds expect the delays to result in lost revenues and 30% stated they had to face penalties for not meeting contractual obligations. The unprecedented labor shortage is forcing organizations to hire ill-suited candidates, resulting in foregone opportunities that impede businesses’ ability to compete.

This lack of skilled labor and halt in the international mobility of temporary foreign workers is increasing the labor market gap, businesses are facing a labor shortage and the demand for skills across many sectors is on the rise. The survey sheds light on global talent access via immigration and international mobility programs, the top three skills accessed are 93% of skilled workers, 85 % executive management, and 67 % engineering staff. Nonetheless, the demand for non-degreed professionals and technical staff is growing, though the lack of education makes it difficult to access their talent.

The survey also highlighted that apart from ongoing challenges faced by IRCC, the continued closure of Consulates, High Commissions and VAC abroad has had a great impact as temporary foreign workers cannot complete biometrics in their home country.

With a dearth of new talent pools and retiring workforce, Canada should take actions to expedite processing of applications. The survey questioned respondents if they would pay an additional fee for expedited processing of applications and 89% of respondents said they would be willing to pay between 10% and 25% above current processing fees for expedited processing as for Skilled labor shortage has become the most pressing need of their organizations.

Canada: Most desirable destination for prospective immigrants

Survey conducted by WES unveiled the changing interest and intention of immigrants as the pandemic unfolds. The survey confirmed that despite the COVID-19 pandemic, prospective immigrants gained interest in immigrating to Canada between April and August 2020. This was evident as the number of immigrants interested in moving to Canada grew from 38% in April to 46% in August.

Globally, the COVID-19 pandemic has had far-reaching consequences beyond the spread of the disease itself, ranging from challenging the healthcare system to the falling economy. The study revealed that prospective immigrants expect worsening of economic conditions and the rise in unemployment in their home country to be worse than in Canada. Aggregated responses highlight that 49% of respondents are inclined to immigrate to Canada due to the economic recession in their home country, while other 32% state worsening of economic situations in their home country has no impact on their decision to immigrate.

Nearly, 80% to 81% of respondents stated that COVID-19 will negatively impact the economic conditions in their home country.  Prospective immigrants are more willing to endure an economic downturn in Canada than in their home country, as 48% of respondents indicated a recession in Canada will have no impact on their immigration choice, while interestingly 22% stated that their interest would increase in Canadian immigration irrespective of economic fallout.

According to research conducted by Financial services provider Remitly using Google search data, Canada is the most desirable place to live on Earth. People from 29 countries wish to immigrate to the true North, due to friendly locals, beautiful scenery, safety, low unemployment, and high immigration options. Despite travel restrictions causing severe disruption in international mobility, hopeful immigrants do not seem to be reconsidering their immigration plans and timelines. Additionally, the WES survey gained insights that immigrants are less likely to delay their immigration plans to Canada. Among 480,822 respondents, 32% stated delaying their immigration plan in June, while this number fell to 12% in August despite the prevalent crises.

Canadian government’s commitment to recovery and resilience can be driving immigrants towards Canada. Among all applicants who opt WES for credential evaluation, the majority are Indian citizens, followed by citizens of Nigeria, United Arab Emirates, United States, and The Philippines. Furthermore, India stands out as the top country of citizenship for immigrants who received an ITA through Express entry in 2019.

Canada needs newcomers as their impact on the Canadian economy is profound; immigrants support the economy and meet the necessary labor market needs in terms of workforce availability. Immigrant-focused financial recovery plan should be at the forefront of Canada’s post-pandemic goals to ensure long term recovery.

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.

IRCC implements Changes in Extensions and Implied Status

COVID-19 pandemic has been impacting Canadian immigration and, IRCC understands that delay in processing time has adversely affected Temporary residents. In the light of issues faced by temporary residents on implied status, Canada has implemented changes in the processing of work permit extensions on October 20, 2020.

If a worker, visitor, or student applies to extend his or her status in Canada before that status expires, he or she may legally remain in Canada until a decision is made on the application. In such a scenario, the person has implied status. The implied status remains until the Government decides on the applicant’s new work/study permit application.

If the applicant applied for a work/study permit extension before their work/study permit expired, they can not only keep working/studying but also avail government benefits, services and other privileges until a decision is made. Applicants must stay in Canada and meet the conditions of their original work/study permit. For instance, if an applicant has an employer-specific work permit, they must still work for the employer named on that permit.

However, availing these services, sometimes becomes difficult for the applicant as they have no written proof of their application being processed by the Canadian Government. The only document they have is the receipt of fee payment and copies of their application which is generally not considered an official document to prove applicant’s status. To avoid this distress and to provide clarity, IRCC has changed the phrasing of their communication to the applicant.

As of October 20, 2020, temporary residents who submit their extension application online through IRCC portal, will receive an auto-generated Acknowledgement of Receipt Letter confirming their existing authority to work/study/stay has been officially extended to a specific date. This letter can act as a proof of authorization and can be attached to applicant’s expired work permit as a verification of their continued legal status in Canada.

It is paramount for the temporary resident to apply before expiry of their status and, applicant should remain physically in Canada during their implied status period, for receiving this Acknowledgement of Receipt Letter.

Survey: What Canadians think about family reunification during pandemic?

Canadian Immigration policy has been an integral component of the nation’s development, and debates in this area have consistently been framed in terms of deciding which immigrants should be included or excluded as part of expanding Canadian social framework. Over the past year a paradigmatic shift has occurred within the Canadian immigration, which has increasingly pushed for a stronger emphasis on the preferential entrance of economic migrants.

The Canadian Government is committed to keeping families together whenever possible by various generous family reunification programs like Family Class Sponsorship programs where in Canadian Citizens and Permanent Residents are eligible to sponsor family class members who wish to immigrate to Canada through programs such as spousal and common-law partner sponsorship, parent and grandparent sponsorship, parent and grandparent Super Visa and dependent child sponsorship.

A survey of 1,531 Canadians was conducted by Association of Canadian Studies which reveals that amid COVID-19 large numbers of Canadians support family reunification as one of the core immigration priorities over economic immigrants and expanding the refugee program. This is evident as nearly 36% of respondents stated that priority should be given to family members of people residing in Canada.

Canadians are affirmative about the role of immigrants in the recovery of Canada’s economy, as 61% Canadians agreed that immigration will support economic development, while 22% said that it would have a negative effect and 18% Canadians were not aware about the facts and stated that they cannot decide. Coast to coast among various provinces 67% of respondents from Atlantic Canada state that immigration would benefit while on the contrary 26% of the prairie provinces respondents were of the view that immigration would have a negative effect on the country’s economy and 22% respondents did not respond.

Alberta respondents were the most supportive of family reunification followed by 42% Atlantic Canada and 36% Ontario. The least support of combined 28% was demonstrated by respondents from Manitoba and Saskatchewan. Between 2016 and 2020, Canadian respondent’s support towards prioritizing economic class immigration stayed constant at 27%, while support for refugee class witnessed a drop of 13% as it fell from 29% to 16% among these years.  Manitoba with 70.2%, Saskatchewan at 68.6% and Quebec with 67.6% recorded the biggest decline among other provinces in admission of new immigrants in the second quarter of 2019 and 2020.

Canadians feel that IRCC should focus on expanding family reunification programs rather than making efforts towards attracting and admitting economic newcomers through the Federal Skilled Worker Program and Federal Skilled Trades Program, as well as by expanding the Provincial Nominee Programs, for investors, entrepreneurs, and self-employed.

Canadians feel that the Government is not working towards family reunification, and many family members are separated due to delay in processing of applications and travel restrictions during this pandemic. They suggest the proliferation of family reunification programs, as the current immigration strategy raises questions about the fairness, equity, and direction of Canada’s current approach to immigration for building the nation. In March, Immigration level plan for 2020-2022 was announced where economic class and refugee class levels were scheduled to increase yearly, but family class immigration was settled with a target of inviting 91,000 new immigrants.

COVID-19 has negatively affected the Canadian economy and immigration has faced the worst hit. All immigration programs are facing a cut back, but family class sponsorship has faced a set down of 78% in the second quarter of 2020 as opposed to last year. Along with this refugee resettlement witnessed an exponential fall of 85% and 52% drop back was noted in economic class immigration.

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 front line workers today. Various internal and external factors should be considered when thinking about the future of Canada’s immigration system post coronavirus pandemic such as demographics, economy, labor market, politics, processing capacity and capacity to integrate newcomers.

Lately, Canada’s immigration minister stated that they viewed immigration as a crucial step to supporting the country’s post-coronavirus economic recovery after a meeting where they discussed the importance of attracting immigrants to rural Canadian communities and role of international students in Canadian economy.