Toronto becoming the fastest growing tech hub as immigrants choose Canada over the U.S.

Over the years, Toronto has proven it has more offer than its commercial and cultural attractions. It has quietly become the world’s fastest-growing destination for technology jobs, leveraging an immigration policy that is friendly to tech talent.

Silicon Valley has served as a global hub for technology and innovation in the past, but United States restrictive immigration laws are hampering its growth. While Canada’s immigration policy has especially been generous to high-skilled workers in technology.

Toronto and other parts of Canada have been feasting on tech talent as immigrants are diverting from the U.S. due to stringent immigration policies like temporary suspension of H1B1 Visa which facilitated immigration for thousands of skilled immigrant workers every year. Even during coronavirus outbreak, immigrants in the U.S. faced unusual threat to employment, where in the U.S. is closing doors for immigrants while Canada is attracting an impressive flow of technology jobs and investment.

Tech companies with global footprint are setting up hubs and expanding operations in Toronto. The number of tech jobs in Toronto has risen steeply with an increase of 54% from about 148,000 to 228,000 in the past since 2013. Toronto certainly displays compelling potential with its mix of talent, technology, and universities together with highly skilled immigrants possessing STEM degrees even before arrival into the country.

Canada’s evolution over the years as a fount of technology is mirrored by the growth of the Tech sector in Toronto, as nearly 40% or 350,000 Canadian tech workforce comprises immigrants along with 25% of immigrants in the overall workforce.

Immigrants are choosing Canada over the U.S. as these people work in the same time zone, get quick flight for travel, rely on generous Canadian laws, and benefit of Canadian dollar salaries. Canada is attempting to attract highly skilled foreign professionals through visa programs like the Global Talent Stream with fast processing time where you move to Canada as quickly as a month as well as provincial tech programs that offer an expedited immigration pathway for people with tech skills .

Expert talent, high-speed communication, industry-leading research, and development have made Toronto a global hub for IT.  This region has had the fastest growing tech talent pool out of all major North American tech hubs. Between 2,100 and 4,100 active tech start-ups are in the ecosystem, according to a TechToronto report, beating both New York and San Francisco combined. It has even been identified as “the new Silicon Valley”.

Toronto’s technology industry is growing, and it is drawing some of the world’s biggest and brightest technological minds to the city — and many are choosing to stay. Toronto houses numerous innovation centers, start-up accelerators and industry giants including Google, Twitter, and Microsoft. Here is a list of different sectors where plethora of Tech companies are contributing towards turning Toronto into technology epicenter.

Finance

Under this sector companies like FLYBITS are leading contextual customer experience platform for financial sector, retail sector, wealth management and insurance sector. Other companies focused on Fintech sector include SENSIBILL which facilitates a digital receipts ecosystem that allows customers to access receipts directly from their bank accounts which creates stronger relationships among customers and financial institutes.

Education

Company like TOP HAT are focused on Edtech sector, they create higher education teaching app that makes active learning come to life with real time classes. They engage and motivates learners with captivating virtual classroom features, interactive course content and built-in assessment capabilities, partnering with more than 750 universities across North America.

Health

This sector has one of the fastest growing start-ups in Canada, like CAREGUIDE and MAVENCARE which aims at bringing high quality care providers to matching families in need. Careguide matches care seeker sand care providers through websites like CanadianNanny.ca, HeartPayroll.com, Sitter.com, Housekeeper.com, PetSitter.com, ElderCare.com, HouseSitter.com. Other companies like THINK RESEARCH create healthcare software to empower clinics by integrating machine learning with expertise of physicians, pharmacists, nurses, and other medicine practitioners.

Software

Plethora of companies like ACHIEVERS, EVENTMOBI, TAPLYTICS, RUBIKLOUD TECHNOLOGIES, LOOPIO and INFLUITIVE are focused on providing exceptional services by driving profits of global brands with technological assistance and knowledge-based tools to manage big data along with integration with Internet of things and Industry 4.0

Automotive

TRADEREV facilitates an online automotive re marketing system where dealers can launch and participate in real-time vehicle auctions. This company was acquired by KAR Global in 2017 and aims to reinvent the auto industry with its revolutionary vehicle appraisal and auctioning system.

Home Electronics

Canadian home automation company like ECOBEE creates cost effective and energy conservative products like smart thermostats, temperature and occupancy sensors, smart light switches, smart cameras, and contact sensors. Consumers uses thermostat through built-in touchscreen, web portal, or app available for iOS, Android, and the Apple Watch.

Biotech

DEEP GENOMICS is a company working in biotech sector towards transforming AI, biology, and automation in medicine. They are primarily focused on development of oligonucleotide therapies targeting genetic determinants of diseases at RNA and DNA level.

Retail

Retail sector is not left untouched by technology, companies like TULIP are developing platforms to empower retailers by providing a modernize in-store experience for retailers with global footprint like Kate Spade, Bonobos and Saks Fifth Avenue. Another company focused on providing next generation shopping marketplace is FLIPP which empowers users and transforms retail brand businesses.

Expired COPR and PR visa holders may travel to Canada

Canada’s immigration department has issued new guidelines that allow individuals with expired Confirmation of Permanent Residence (COPR) and Permanent Resident Visas to travel into the country. Immigration, Refugees & Citizenship Canada (IRCC) have issued different policies for holders of expired visas depending on whether they are traveling from the U.S. or other countries.

In order to qualify for the new guidelines, individuals outside the U.S. should have obtained their visa on or before March 18, while U.S. visa holders qualify irrespective of when they received their visa. Individuals intending to travel to Canada temporarily for optional or discretionary purposes, such as tourism, recreation and entertainment are not permitted under the exemptions. At the moment, only those individuals who wish to stay and settle as permanent residents in Canada are exempted from travel restrictions.

Group 1: Travelers from any country other than the U.S. with Valid COPR and PRV

The applicants who were issued COPR and PRV on or before March 18 fall under this category. They are exempted from travel restrictions, allowed to travel to Canada for non-discretionary reasons even with expired documentations and have to follow the mandatory 14-day quarantine plan.

Group 2: Travelers from the U.S. with Valid COPR and PRV

This group includes applicants from the U.S. who wish to travel to Canada for non-discretionary purposes; to settle and dwell in Canada. These travelers should have approved application status, with valid COPR and PRV, and should have an appropriate plan to quarantine for 14 days.

Group 3: Travelers from any other country other than the U.S. with Expired COPR and PRV

Group 3 comprises applicants who are ready to travel to Canada for permanent residence with possession of an expired COPR and PRV.  These applicants are required to contact IRCC using a web form where they need to provide expiry date of COPR and legitimate non-discretionary reasons for travel. Candidates will be directed to the suitable processing network after the web forms are received.

Group 4: Travelers from the U.S. with Expired COPR and PRV

This group consists of people travelling from the U.S. to Canada for non-discretionary reasons and wish to settle as permanent residents with expired COPR. The candidates need to submit a proof of approved application, and an acceptable quarantine plan for 14 days along with COPR and PRV documents.

Things to do for holders of expired COPR and PR visas

IRCC will prioritize clients with a detailed proposed or confirmed travel plan, or clients who show a willingness to book and confirm travel plans as soon as they are approved. Applicant and accompanying family member must meet the following eligibility criteria:

  • A valid COPR and PRV on or before March 18, 2020 and no specific date for U.S. based applicants or an expired COPR and PRV
  • A persuasive travel reason like need to tend to non-discretionary family matters, family reunification, need of immediate medical care, expiring status in the U.S. for economic reasons such as to support economic services and supply chains, critical infrastructure support
  • The country where you reside is not subject to exit controls that limit your ability to travel to Canada

Applicants should provide proof of the following:

  • An acceptable plan to quarantine for 14 days in Canada including proof of funds for purchasing groceries, medical care among other essential services;
  • An acceptable plan to settle such as documents to support your living situation in Canada (address, lease agreement, home ownership document) or employment plans in Canada (location of work, letter from employer);
  • A proposed travel itinerary, including pre-purchased travel tickets

Processing of new permanent residence applications 

New applications for permanent residence are currently accepted in Canada. New files with missing documents or are incomplete will be retained and reviewed within 90 days. Nevertheless, an explanation should be added to the application referencing service interruptions due to coronavirus-related travel restrictions if a new application lacks supporting documentation. If the explanation is vital, it may result in the application being promoted and reviewed within 90 days. New applications will be processed in the receiving order. normal procedures will be followed for new completed applications for permanent residence.

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.

COVID-19: Program delivery updates for permanent residence applications

COVID-19 program delivery instructions are for new and existing permanent residence applications in Canada and abroad.

Applications will not be refused for non-compliance, and all applications currently in progress at IRCC offices abroad and at case processing centres within the Centralized Network and within the Domestic Network will continue to be processed but may experience delays.

Application intake

IRCC will continue to accept new permanent residence applications. Incomplete applications because of unavailable documents will be retained in the system and reviewed in 90 days. New, complete permanent residence applications will be processed as per normal procedures while taking into consideration the following additional processing guidance:

If a new application is missing supporting documentation (associated fees are required), the applicant should include an explanation with their application that they are affected by the service disruptions because of the novel coronavirus. The application may then be promoted and reviewed in 90 days.

If the application is still incomplete in 90 days, officers should request the missing documents with an additional 90-day deadline.

Incomplete applications with no explanation provided, or for reasons unrelated to the disruption of services associated with impacts of the novel coronavirus, may be rejected and all fees associated with the application should be refunded to the applicant. The reason for rejection should be unrelated to the disruption of services. 

Approved permanent residence applications (COPR and PRV) 

Permanent residence applicants who are in possession of a COPR and PRV and inform IRCC, by submitting a Web form, that they are unable to travel within the validity of their documentation should be processed as follows:

Valid COPR and PRV: In an effort to reduce the number of cancelled COPRs and PRVs, IRCC will put a note in the file explaining that the applicant is unable to travel, and the file should be brought forward to the expiration date of the COPR and PRV. If the applicant informs IRCC that they can travel prior to the COPR and PRV expiration, they are encouraged to use their existing COPR and PRV to land.  

Expired COPR and PRV: If the applicant informs IRCC via the Web form that they are unable or unwilling to travel after the expiration of their COPR and PRV, or if they are unable or unwilling to travel prior to expiration, officers are to re-open the application, and it should be brought forward for review in 90 days.  

Re-opened applications

Approved applications where the principal applicant has not already become a permanent resident can be re-opened in GCMS by cancelling the COPR and PRV and removing the final decision.

Review of a re-opened application 

Once the applicant informs IRCC via the Web form that they are able to travel, a re-opened application may be re-approved provided that the applicant and their family members, whether accompanying or not, have valid immigration medical examinations, criminal and security checks and passports.

If the 60-day waiting period elapses and the applicant has not informed IRCC that they are able to travel, a note will be placed in the application, and it should be brought forward for review for an additional 60 days.

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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.

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