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.

Canada : Life Science leadership during COVID-19 pandemic

COVID-19 has disrupted the world and has slowed down the global economy. Canadian government has done a commendable job by focusing on COVID-19 containment and immediate relief by collaborating with health organizations and other authorities. IRCC has stated that Canada’s priority has been one of protection and preparation: protecting people’s health and safety while preparing business for a smooth transition to recovery. This successful response to coronavirus has showcased the strong relation among life science and professional health care management in the country.

The Canadian life sciences sector is a vital contributor to Canada’s innovation economy, and one of the country’s fastest growing industries participating towards medical innovations that will enhance the health-care delivery and patient care in Canada and around the globe. This Canadian sector comprises occupations within research, development, and manufacturing. This sector includes small and medium-sized companies developing diagnostics, bio pharmaceuticals, pharmaceuticals, and medical appliances, as well as international companies with research, development, and production operations in Canada, serving both domestic and international markets.

British Columbia has one of the largest bio technologies and life sciences sectors in Canada. The province plays an important role in the growing global life sciences industry. There are 310 life sciences organizations in British Columbia with estimated employment of 14,000 people contributing $1.03 billion to provincial GDP growth. The BC life sciences sector includes a broad range of companies, government agencies, healthcare research organizations and academic partners.

In parallel with Canadian government initiatives, there are various companies contributing towards development of products and services to curb COVID-19 pandemic. Some of these companies are:

Thornhill Medical is a medical device innovator company based in Toronto. This company has been producing and delivering revolutionary portable ventilator systems in large quantities to health care facilities across Canada.

Roche is a global company pioneering in pharmaceuticals and diagnostics of advanced science. They are the world’s largest biotech company focused on personalized healthcare. This company created a COVID-19 antibody test which will help determine if a patient has been exposed to coronavirus and if the patient has developed antibodies. This test is supporting the country’s economic recovery and is recognized as a significant contributor to Canada’s testing capability.

Hexoskin is a smart shirt company based in Montreal. Since the advent of the coronavirus pandemic this company has been working with the government and health systems in the US, UK, and Canada to support health care services. They have been successful in developing a high-tech shirt that monitors COVID-19 patient’s vital signs from the comfort of their home. Hexoskin supports hospitals by freeing up space and easing the burden on staff via installing patient-monitoring systems in hospitals and setting up own telehealth teams.

Medicago is a company rooted with a long track record of innovation and perseverance. They are situated in Quebec and have successfully created a nominee for a coronavirus vaccine using their innovative plant-based technology. They were the pioneer in Canadian clinical trials of any COVID-19 vaccine.

Sona Nanotech Inc. is a medical device company based in Halifax. Sona has been awarded a $4.1 Million grant by Prime Minister Justin Trudeau as per the NGen Initiative to accelerate COVID-19 test development. They are creating a ground-breaking antigen test to detect the presence of COVID-19 beforehand, rather than detecting antibodies after infection which can be used at point of care and deliver results in as little as 10 minutes.

Quantum Silicon Inc. is an Alberta based company, applying nanotechnology in electronics to develop faster and more energy-efficient technologies by manipulating matter at the atomic scale. Their CEO states the importance of government incentives in building a stronger industry.

Although there are hundreds of jobs available in the Canadian life science sector, Canada is struggling to meet labour demand needs and requires highly skilled foreign individuals and innovative entrepreneurs in search of investment opportunities or ways to expand their existing business abroad.

Canadian government is trying to help bridge the labour gap by providing pathways for skilled foreign workers to live and work in Canada. Two of these pathways include the Express Entry System and the Provincial Nominee Programs which not only made the immigration process easier but also fast-tracks the visa process, allowing newcomers to immigrate to Canada with their families in as little as 6 months.

Incentives provided by the Government

The government implemented various incentives to support Life science development in Canada, such as:

  • Canada’s Strategic Innovation Fund (SIF), which provides funding to large projects with an objective to stimulate innovation for a better tomorrow in Canada. SIF brought forward projects to fight against COVID-19 and this program was expanded by additional funding to support the clinical trials for COVID-19 related vaccines and therapies.
  • The Scientific Research and Experimental Development (SR&ED), which gives tax credits and refunds to eligible companies in Canada and is the country’s largest R&D tax credit program. Some examples include operations research, data collection, engineering, testing, psychological research, or design.
  • The Canada Foundation for Innovation (CFI), which funds research in universities, colleges, research hospitals and non-profit research institutions.
  • Genome Canada, which is responsible for providing large scale investment to help develop new tech and create solutions to challenges faced on a national scale.
  • Mitacs is a non-profit research organisation that funds technology-specific internships and fellowships through Canadian universities by partnering with Canadian academia, private industry, and the government.
  • Canadian Institutes of Health Research (CIHR), a funding agency supporting innovative improvements in the health care sector.
  • Canada Brain Fund (CRF), which supports and funds Canadian brain science.

Along with these strategies, comes the Global Skills Strategy, which allows Canada to enrich its skilled workforce by bringing in highly skilled individuals from abroad. This strategy was developed by IRCC to help employers find highly skilled workers faster and bring them to the country within 2 weeks.

The Start-up Visa Program gives foreign investors the opportunity to start or invest in a business anywhere in Canada. Through this program applicants are also able to get permanent residency in Canada, provided they meet government requirements.

Canada is an ideal place for nanotech companies to invest and expand as life science sector is supported by a booming group of academia, world-class talent, government support and investors from around the world. Innovation in life sciences requires a collaborative ecosystem of partners such as hospitals, research centres, universities, technology incubators, start-ups, scientists as well as multinationals – and every day they are collaborating in Canada.

Canada’s life sciences businesses are among the most lucrative sectors where companies with global footprint are investing. This is because Canada offers a qualified workforce and is globally rated at the top for having the most educated workforce in the world, with over 55 per cent of its population possessing a tertiary qualification. Along with this Canada is the only country in the world, able to trade freely with every G7 nation. This free trade boosts opportunities to increase investment revenue by offering preferential market access to more than 1.5 billion consumers in 51 countries.

Canadian immigration pathways for tech workers

Canada’s tech sector has been booming in the recent years. Technology is evolving rapidly, and Canada has quickly established itself as a leader in the emerging IT sector. More and more tech workers are immigrating to Canada in search of new employment opportunities and there is no secret why?

Canada offers various ways to immigrate as a tech talent, including programs which offer Canadian permanent residency. Even with the advent of coronavirus pandemic, this sector remains strong with companies actively recruiting talent around the globe.

Canada is helping to make it easier for businesses in the technology sector to recruit top talent. Whether candidates wish to move to Canada on a permanent or temporary basis, the following are key options are to consider:

Express Entry

Express Entry is a system used by the Canadian Government to manage Canadian permanent residence applications for filling labor gaps through certain economic immigration programs. It is an extremely popular option for global tech talent looking to immigrate to Canada. Tech workers are the main occupational group of immigrants who move to Canada through Express Entry.

If you are a tech worker who has not lived in Canada before, the best option for being eligible for Express Entry is through the Federal Skilled Worker Program (FSWP). The FSWP accounts for nearly half of all individuals who obtain an Invitation to Apply (ITA).

Federal Skilled Worker (FSW) applications are assessed based on an applicant’s ability to become economically established upon immigration to Canada. This is a key category in Canada’s Express Entry (EE) immigration system.

Minimum program requirements: To qualify under this program, the applicant must:

  • Have at least one year of continuous full-time or equivalent paid work experience in the past 10 years in a skilled occupation (National Occupational Classification skill lever 0, A or B); or Qualify for an  Arranged Employment in Canada (AEO) with a Labour Market Impact Assessment (LMIA) for a full-time, permanent job offer from a Canadian employer;
  • Get a minimum level of CLB 7 or NCLC 7 for first official language in all 4 language areas (Reading, Writing, Speaking & Listening). To get points for the second official language, you must meet the minimum level of CLB 5 or NCLC 5 in all 4 language areas;
  • Have a Canadian educational or Educational Credential Assessment (ECA)for a foreign education.
  • In addition to fulfilling eligibility and points requirements, applicants must show that they have sufficient settlement funds to support themselves and their dependents after arrival in Canada

Important Points

  • The applicant(s) must obtain at least 67 points based on Immigration, Refugees and Citizenship Canada’s (IRCC) immigration selection factors. The selection factors are as follows:

Education: 25 points | Language: 28 points | Work Experience: 15 points | Age: 12 points | Arrange Employment: 10 points | Adaptability: 10 points

  • The applicants must plan to reside outside the province of Quebec. The province of Quebec selects its own skilled workers through a unique immigration system.

Provincial Nominee Program (PNP)

Furthermore, the next best option for tech talent to immigrate to Canada is PNP. The Provincial Nominee Programs (PNPs) allow Canadian provinces and territories to nominate individuals who wish to immigrate to Canada and are interested in settling in a particular province.

Provinces and territories (PTs) that operate a Provincial Nominee Program (PNP) can nominate candidates through the Express Entry pool, in addition to nominating foreign nationals to the existing paper-based process. PT nominations made via Express Entry are called “enhanced nominations” and enable each PT to increase its annual nomination space. Enhanced nominations are processed online and are subject to the six-month or less processing standard (in 80% of cases).

 Minimum program requirements: To qualify under this program, the applicant must:

Important Points

  • Candidates who have a PT nomination 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.
  • PTs have direct access to the Express Entry pool through a dedicated portal that allows them to view and nominate candidates in the pool.
  • Once a nomination has been issued by a PT and accepted by a candidate, it cannot be cancelled in the candidate’s Express Entry profile. Should the candidate change their mind, or the PT withdraw the nomination after acceptance of the nomination, the candidate must cancel their Express Entry profile and submit a new profile in their online account.

Tech is a significant area of need, which is why some provinces operate tech worker streams, the most notable programs are offered by the provinces of Ontario and British Columbia.

The Ontario Tech Pilot is for workers who have experience in one of six tech occupations and have crated their Express Entry profile. In 2020 Ontario has held two Tech Pilot draws, including one during the pandemic, in May, under which over 700 candidates received invitations for a provincial nomination.

The demand for talent in B.C.’s tech sector is increasing faster than supply. British Columbia Tech Pilot invites immigration candidates to apply for a provincial nomination on an almost weekly basis if the candidates have a job offer in one of 29 tech occupations. In 2020, the province has held 14 tech draws, including earlier this month, with over 1,500 people receiving provincial nominations so far this year.

Start-Up Visa

The Canadian government also operates the Start-up Visa program. This program grants permanent residence to immigrant entrepreneurs while assisting them to become established in Canada. It is a popular option for tech talent and has significantly different selection criteria from other skilled worker programs.

The program encourages immigrant entrepreneurs to grow their companies in Canada. Under this program successful candidates need to be endorsed by a Canadian government designated entity such as an angel investor, venture capital firm, or business incubator, who are in turn responsible for supporting the entrepreneur’s success once they come to Canada.

Eligibility requirements of the program: To be eligible for the Start-up Visa Program, the applicant must:

  • Have a qualifying business
  • Get a letter of support from a designated organization
  • Meet the language requirements
  • Bring enough money to settle
  • Pass Canadian security and medical clearances
  • Plan to settle in a province other than the Province of Quebec 

Qualifying Business: A qualifying business means you created a business that meets the following conditions:

  • At the time you get a commitment from a designated organization:
    • Each applicant holds 10% or more of the voting rights attached to all shares of the corporation outstanding at that time (up to 5 people can apply as owners)

and 

  • Applicants and the designated organization jointly hold more than 50% of the total voting rights attached to all shares of the corporation outstanding at that time
  • At the time you receive your permanent residence:
    • You provide active and ongoing management of this business from within Canada
    • An essential part of the operations of the business happens in Canada
    • This business is incorporated in Canada 

Designated Organization

The applicant must get a letter of support from a designated organization. Designated organizations are business groups (venture capital funds, angel investor groups, and business incubator organizations) that are approved to invest in or support possible start-ups through the Start-up Visa Program. Successful applicants are required to secure a minimum investment for their Canadian start-up. If coming from a designated Canadian venture capital fund, the investment must be at least $200,000 CAD. If coming from an angel investor group, it should be at least $75,000 CAD. Applicants do not need to secure any investment from a business incubator. However, applicants must be accepted into a Canadian business incubator program.

Applicants are not required to invest any of their own money. If their Canadian start-up is unsuccessful, individuals granted permanent residence through this program will retain their permanent resident status. 

Language Requirements

The applicant must meet the minimum level of the Canadian Language Benchmark (CLB) 5 in either English or French in all four areas (speaking, reading, listening & writing). 

Enough money to settle in Canada

The Government of Canada does not give financial support to new start-up visa immigrants. An applicant is required to give proof that he/she has the sufficient money to support themselves and dependents after their arrival in Canada. 

Global Talent Stream 

Apart from permanent residency programs, Canada offers many temporary resident pathways for tech workers who are looking for a faster pathway to migrate before submitting a permanent residence application or do not wish to settle permanently in Canada. Immigration programs such as the Canadian Experience Class (CEC) are meant to support the process of temporary residents seeking permanent residency in the country.

One of the more notable temporary visa options is the Global Talent Stream. It enables Canadian employers to hire tech talent and bring them to Canada in about a month. The Global Talent Stream is one component of Canada’s Global Skills Strategy which has facilitated the arrival of over 40,000 tech workers to the country since 2017. 

IMPACT OF COVID-19 ON CANADIAN IMMIGRATION

The COVID-19 pandemic is having a major impact on travel to Canada, but the country is still enabling temporary visa holders to enter the country for work. Invitations to successful immigration candidates are also progressing since Canada is planning to welcome them into the country once the pandemic has subsided. As a holistic view, Canada remains open to global tech talent who wish to call this country their new home.

With so many tech jobs and immigration opportunities, you may be unsure of where to start? Contact us and book a consultation!