This presentation discusses in detail the necessity of continued immigrant integration into the Canadian labour force. Immigration policy must be constantly evolving however, the current policy shifts may be doing more harm than good. This presentation also shows the need for Canada to have a vision to meet our long-term demographic, labour market and national-building needs.

1. Adjusting the Balance:
Fixing Canada’s Economic Immigration
Policies
ALLIES Learning Exchange
June 2009
Naomi Alboim
Overview of presentation
1. Introduction
2. Canadian immigration context
3. Recent policy shifts
4. Cumulative impact
5. Moving forward
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2. 1. Introduction
Recent policy shifts have altered economic
immigration landscape without debate
– Restriction of applications under Skilled Worker Program
– Growth of Provincial Nominee Programs
– Expansion of Temporary Foreign Worker Program
– Transition to permanent residence: Canadian Experience Class
Changes in response to concerns: pros and cons
Cumulative impact: worrisome trends
– Short-term focus
Short-
– Two-step immigration
Two-
– Devolved decision making
Adjusting the balance is necessary for cohesive
system to meet Canada’s long term needs
Canada’
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2. Canadian immigration context
Canada needs immigration to meet short and
long term economic objectives: demographics,
labour supply, skill shortages, innovation
More international competition for skilled workers
Immigration to build nation, community and
labour force: selecting citizens, not just workers
Need to think beyond economic downturn
Immigration as means to an end: one tool in kit
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3. Rising and declining numbers
Skilled workers used to represent 50% of all
immigrants to Canada in 2005; in 2008 down to
42%
Only 17.5% of total flow to Canada in 2008
assessed on the basis of the points system
(skilled worker principal applicants)
Dramatic increase in Provincial Nominee
programs from less than 500 to over 22,000 over
a nine year period (1999-2008)
(1999-
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…rising and declining numbers
Federal Projections for Skilled Workers and Provincial
Nominees
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2009 2010 2011 2012 2013
Federal Skilled Workers Provincial Nominees
Source: Citizenship and Immigration Canada
• Assumes provinces’ projections met and offset by decline in skilled workers
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4. Rise in temporary entrants
Between 2005-2008:
2005-
– 5.7% decline in permanent residents
– 37.6% increase in temporary entrants (students and
workers)
Since 2007 Canada has admitted more temporary entrants
than permanent residents
Permanent residents, temporary workers, international students (initial
entry), 2008
Source: CIC Facts and Figures, 2008
2004 2005 2006 2007 2,008
Permanent Residents 235,824 262,241 251,643 236,754 247,202
Total Temporary 178,841 190,724 211,076 239,247 272,520
Temporary Workers 112,719 122,848 139,268 165,215 193,061
International Students 66,122 67,876 71,808 74,032 79,459
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…rise in temporary entrants
Rise in international students
– Stock up 8% and entries up 20% in 2008 over 2004
Dramatic increase in temporary foreign workers
– Stock up 100% and entries up 71.2% in 2008 over 2004
– BC, Alberta, NFL, Territories received more temporary
foreign workers than permanent residents in 2008
– Significant increase in low skilled temporary workers
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4

5. 2008 permanent residents, temporary workers,
international students (entries)
The proportions of permanent residents, temporary
foreign workers, and international students admitted
in 2008 vary significantly among provinces
% of % of % of
Canada’s
Canada’ Canada’s
Canada’ Canada’s
Canada’
permanent temporary international
residents workers students
Alberta 9.8 20.3 7.7
BC 17.6 24.3 32.3
Ontario 44.7 34.6 33.7
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How are immigrants (all classes) doing?
Recent immigrants as a group more highly educated than
previous cohorts and Canadian born but not faring as well
economically
– More unemployed, underemployed, in part-time part-
part- part-
year employment, in low paying jobs, in low income
than Canadian born
Potential causes include:
– Changing characteristics of immigrants (language,
culture, education, country)
– Discounting of qualifications/experience achieved abroad
– Increased competition with Canadian born and other
new entrants
– Structural changes in the economy
– Business cycle “scarring”
scarring”
– Discrimination
– Lack of alignment between selection criteria and labour
market needs
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6. However certain factors make a difference…
Human capital matters:
matters:
– Skilled worker principal applicants assessed on points system
earn more than all other classes ($36,600 vs $20,314 in 2000)
– Knowledge of official language most important factor
Services matter:
matter:
– Early interventions, language, social networks, Canadian top-
top-
ups
– Internships (75-80% of Career bridge participants find full
(75-
time employment in chosen careers)
– Mentoring(80% of mentoring partnership participants find
employment within 3 months; 85% in their field)
– Bridge training (70% of graduates in Ontario working in their
field; licensure exam pass rates rose from 30 to 80%)
Social capital matters:
matters:
– Family class members do better in first year after arrival
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3. Recent policy shifts
Restrictions for applications under Skilled Worker
Program through Ministerial Instructions
Growth of Provincial Nominee Programs
Expansion of the Temporary Foreign Worker
Program
Establishment of the Canadian Experience Class
to transition from temporary to permanent
residence
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7. Restrictions on skilled workers
Why?
– Prevent further increase of inventory
– Allow for quicker processing
What?
– 2008 Budget Implementation Bill amended IRPA and
gave powers to Minister to:
Limit numbers of applications processed
Accelerate some applications or groups of applications
Return applications without processing them to a decision if don’t
don’
meet requirements of ministerial instructions
– Ministerial Instructions limit skilled worker applications
submitted after Feb 27,2008 to 38 ‘demand’ occupations
demand’
and those with job offers, before assessed on point
system
– All other applications returned
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..restrictions on skilled workers
Concerns:
– Primarily occupations-based selection didn’t work under
occupations- didn’
old Act
– Some occupations already out of date
– List too narrow for long term economic needs: puts onus
on provinces to select others
– Regulated occupations on list still face licensing barriers
– Trades on list may not meet point system
– Raising immigrant expectations if on list, turning off
future applicants if not
– Skilled workers not high priority for processing
– Effectively reducing skilled worker pool for future
competitiveness
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8. Growth of provincial nominee programs
Why?
– Provinces want more immigrants to go to their regions
– Provinces want quicker processing of those destined to
their regions
– Provinces want people to meet their labour market and
demographic needs who wouldn’t necessarily meet
wouldn’
skilled worker criteria
What?
– Federal government removed all caps to PNP, allowed each
province to determine its own criteria and targets, and
guaranteed priority processing for nominees
– Nine provinces and Yukon have PNPs. Each has different
sub-components, selection criteria, fees, processes,
sub-
timelines
– Growing exponentially, now 9% of total flow to Canada
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..growth of provincial nominee programs
Concerns:
– Ten Federal-Provincial Agreements in absence of
Federal-
national framework
– Complexity reduces transparency, adds confusion to
potential immigrants and visa officers
– Devolved costs to provinces
– Respond to regional needs but mobility rights
guaranteed
– No common standards, no assessment of human capital
on points system
– Testing ground but no evaluation
– Auditor General concerns in Nova Scotia, PEI and NFL
– Designed as complement to FSW, but priority
processing, no caps and increasing numbers squeezing
out skilled workers
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9. Expansion of Temporary Foreign Worker
Program
Why?
– Employers want quicker and longer access to workers
for hard-to-fill jobs
hard- to-
– Low skilled workers and some trades people ineligible
under Skilled Worker Program
– Long processing times frustrating to employers
What?
– Promotion of TFW, facilitation of Labour Market
Opinions, expedited processing, and increased duration
of LMO’s and employment visas
LMO’
– Introduction of Low Skill Pilot program in the Temporary
Foreign Worker program
– 193,061 entries in 2008 (increase of 71.2% since 2004)
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…Temporary Foreign Worker program
Concerns:
– Employer demand driven: no caps or targets tabled in
Parliament
– Employers using TFWs to fill permanent vacancies and
for low-skilled and unskilled jobs
low-
– TFW get priority processing over skilled worker
permanent residents, yet not assessed on human capital
– Less stringent medical and security checks
– Market for unscrupulous recruiters, fraudulent LMO’s
LMO’
– Used inappropriately could discourage investment in
training, hiring of under or unemployed permanent
residents and citizens; could suppress wages
– Ineligibility for services, mobility restrictions,
dependency on employer, lack of enforcement, absence
of families create vulnerabilities at low end
– Human capital, social capital and services not part of the
equation at low end
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10. Establishment of the Canadian Experience
Class
Why?
– Tap into pool of international students and highly skilled
temporary workers who wish to remain in Canada
– Attract more international students to Canadian
institutions:
Enriched experience; increased workforce on and off campus
Differential tuition
Canadian credential, language capacity assist integration
What?
– Allow qualifying international students and highly skilled
temporary workers to apply for permanent residence
from within Canada
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…Canadian Experience Class
Concerns:
– CEC numbers included in total target for economic
permanent residents tabled annually, reducing number
admitted under skilled worker program
– May squeeze out one-step permanent residency over
one-
time
– May have unintended consequences for post secondary
institutions and domestic students:
Capacity, market distortions, quality control
– Transition to permanent residence only for TFWs at high
end. Others have three options:
Continue working on extended temporary status (no
services, no family unification, continued vulnerability)
Return home or go to third country when visa expires
(employer costs in recruitment, training)
Remain underground as undocumented underclass
(increased vulnerability, no payment of taxes)
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11. 4. Cumulative impact
Short term focus
– Temporary workers, PNP, 38 ‘demand’ occupations
demand’
– Focus on perceived immediate labour market needs
instead of longer term economic priorities and nation
building
– Less focus on skilled workers chosen for human capital
and ability to adapt to changing economic conditions
– Less focus on what is needed to help get us out of
downturn and be ready for upturn
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…cumulative impact
Two-step immigration
– PNP, TFW, LCP, CEC encourage potential immigrants to
come to Canada as temporary entrants first
– Reduces Canada’s competitive edge
Canada’
– Increases uncertainty
– Delays access to services and full rights
– Increases vulnerability
– Delays access to permanent residency and citizenship
– Delays family unification
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12. …cumulative impact
Devolution of federal roles
– PNP, TFW, CEC have devolved much of federal role of
selection of future citizens to provinces, employers and
post secondary institutions
– Mandates may not be consistent with selection of
citizens in the national interest
– May lack capacity to provide supports and services
necessary for successful integration
– Lack of clarity regarding responsibilities and roles
– Complex patchwork of criteria, requirements, costs,
processes, services and supports: no common standards
– Lack of consistency and predictability may jeopardize
competitiveness
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Impact of economic downturn
Negative impact of policy shift (toward PNPs,
CEC, TFW, 38 occupations) could be exacerbated
in a downturn
Potential scenario in a downturn:
– Employers may lay off temporary workers hired in past few years
– Economic immigrants with visas may delay their arrival or return to
their home countries
– Those in 38 occupations may come forward to find changes in the
economy no longer needing the skill sets for which they were
specifically selected
– PSE institutions may be oversubscribed and unable to accept large
large
numbers of international students
– Employers may not recruit more temporary workers
– Provinces may reduce their PNP programs
If tap turned off, we could be worse off
demographically and less able to meet labour and
skill shortages when economy improves
Laid off permanent residents and new arrivals will
require services to prepare for re-entry
re-
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13. 5. Moving Forward
ADJUSTING THE BALANCE
LESS MORE
Short-term focus Long-term vision
Two-step immigration: emphasis One-step immigration: emphasis on
on temporary entrants a revitalized Skilled Worker Program
Devolution of federal roles in Selection of immigrants under
immigrant selection national frameworks with room for
custom solutions
Traditional approach to immigrant Creative approaches to immigrant
services services with labour market focus
Rapid changes without debate and Debate and evaluation to inform and
evaluation achieve national vision
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Recommendations
Adopt a national vision for economic
immigration
Improve current programs
Invest in labour market services that
work
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14. Adopt a national vision for economic
immigration
1. Articulate a national vision for economic
immigration through public dialogue and
debate
– Ensure all components work together towards national
objectives, taking into account provincial and municipal
considerations and needs
– Contribute to knowledge based economy, in concert with
training and PSE policies
– Sustain balanced shares of economic, family and
humanitarian immigration
– Identify optimum balance between components of
economic immigration
– Prioritize permanent vs temporary immigration
– Define roles to be played by governments, employers,
PSE institutions and other stakeholders to ensure the
success of economic immigration
– Develop framework for ongoing evaluation
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….Adopt a national vision for economic
immigration
2. Improve capacity for long-range planning
long-
and resource allocation to achieve the vision
– Develop multi-year immigration plans in consultation
multi-
with provincial, territorial and municipal governments
and stakeholders
– Include separate targets for CEC so one-step vs two-
one- two-
step immigration can be monitored and adjusted
– Negotiate targets for PNP to ensure balance among
components of economic class
– Table targets for temporary entrants following
consultation with employers and PSE institutions
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15. Improve programs: Skilled Worker Program
3. Make the Skilled Worker Program Canada’s
Canada’
priority for economic immigration
– Make it the largest component with priority processing and resources
resources
to eliminate the backlog; conduct ongoing evaluations for continuous
continuous
improvement
4. Revise the point system to better match
long-term labour market needs
long-
– Introduce mandatory language test, dispense with occupation list, add
list,
points for demand occupations and validated job offers, restructure
restructure
education to reward trained trades people, add points for youth, add
points for family connections
5. Connect skilled worker applicants to
employers
– Create searchable data base for employers of immigrant applicants
and expedite those applicants with validated job offers
– Establish overseas recruitment sessions as part of Canadian
Immigration Integration Project
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Improve programs: Provincial Nominees
6. Create a national framework for provincial
nominee programs to complement but not
replace the Skilled Worker Program
– Establish baseline eligibility criteria, procedures,
timelines and fees; evaluation framework to assess
different approaches, retention, and integration success
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16. Improve programs: Temporary Foreign
Workers
7. Eliminate Low Skill Pilot Project for
temporary foreign workers
– Explore ways to make lower skilled jobs attractive to those
already in Canada; consider expansion of family and refugee
classes; points for demand occupations
8. Monitor and enforce recruitment and
working conditions of temporary foreign
workers
– Provide leadership and support to provinces to monitor and
enforce working conditions and recruitment agency practices
9. Strengthen labour market opinion process
– Before providing positive LMO: require employers to search
data base; review employer practices to ensure no barrier to
unemployed or underemployed in Canada; monitor employers
after FTW arrival
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Improve programs: Canadian Experience
Class
10. Define the role of employers and
postsecondary institutions in the Canadian
Experience Class
– Consult with employers and PSE institutions to define
roles, enhance capacity and provide support
– Monitor the CEC for unintended consequences
11. Expand eligibility on a one-time basis for
one-
temporary foreign workers admitted under
the Low Skill Pilot Project
– To prevent vulnerability and exploitation of an
underground underclass
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17. Invest in labour market services that work
12. Expand overseas information and services
– Expand to include more countries and more services
13. Broaden eligibility for federally funded
settlement services
– Expand eligibility to citizens, temporary workers,
international students, and refugee claimants
14. Expand access to funding for labour
market services
– Expand CIC programming to include range of labour market
services; ensure that immigrants benefit from training
dollars allocated by HRSDC to provinces for persons
ineligible for Employment Insurance
15. Fund successful and creative labour
market supports
– Fund national internship and mentoring programs, enhance
funding for ELT and bridge training; create a loan or income
support program and other employment supports for access
to training; enhance interventions during downturn
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Conclusion
Immigration patterns and policies are constantly
evolving
The cumulative impact of recent policy shifts is
potentially enormous
In the absence of good policy development,
consultation and evaluation, we may be creating
worse problems rather than fixing the ones we
currently face
Need for public debate and overall vision to meet
Canada’s long term demographic and labour
Canada’
market needs…
needs…
…and to ensure Canada is the residence of choice
for skilled immigrants from around the world
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