Changes to Economic Immigration Programs and the Expression of Interest System Business Council of British Columbia November 22,2012

Purpose today: – To provide a brief overview of the changes being

made to economic immigration programs as well as some of the considerations in developing an Expression of Interest application system

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Outline

• The Prime Minister’s speech at the Davos Economic Forum and Budget 2012 made clear that immigration is a key priority for the Government of Canada

• The Government’s vision for immigration o Prime Minister Harper stated that we “will… undertake significant reform of our immigration system

[and will] make our economic and labour force needs the central goal of our immigration efforts in the future.” [Davos, 2012] New application management system – “just in time” processing to quickly respond to

changing priorities and needs Eliminate application backlogs A greater focus on economic immigration

• The Government is striving to build a fast and flexible immigration system to meet Canada’s economic and labour market needs

Immigration is important to our future

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Economic Immigration: The Current Suite of Programs N

atio

nal

Federal Skilled Worker Program • All applicants are assessed against the points grid, based on criteria such as age, language and

education

Canadian Experience Class • Open to skilled temporary foreign workers and international students here in Canada

Business Immigration • Investors, entrepreneurs and self-employed

Temporary Foreign Worker Program • Employers who cannot find a Canadian option can hire a TFW

Prov

inci

al &

Te

rrito

rial Quebec-selected Skilled Worker Program

• Quebec manages its own program for skilled workers destined to that province

Provincial Nominee Program • Provinces and territories nominate workers at all skill levels who meet their specific needs

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Federal Skilled Worker Program (FSWP)

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Program overview: • Main objective: select skilled workers who can succeed in

the Canadian economy based on criteria that have been shown to help them adapt to the Canadian labour market and society.

• Introduction of Ministerial Instructions and the Action Plan for Faster Immigration in 2008 have helped to manage intake and reduce the backlog of applications

Federal Skilled Worker Program (FSWP)

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Proposed improvements: In addition to the existing minimum requirement, 2 new minimum requirements added: • Language threshold • Third-party educational credential assessment –

identifying a Canadian equivalent for the foreign educational credential o Applicants whose credentials do not exist in Canada or who

do not have a credential equivalent to a completed Canadian credential are not eligible for the FSWP

o Process to designate eligible organizations and regulatory bodies to conduct foreign educational credential assessments underway

By the Numbers

Planned range for 2012: 55,000-57,000 FSW profile – PA Only (profession, education, age): 82.5% managerial and professionals; 16.3% skilled and technical. 51.3% have university education; 3.1% PhDs. Majority are age 30-39. Main provinces of destination: Ontario (64.5%), British Columbia (17.5%), Alberta (14.5%) Principal countries of origin: India (17.1%), Philippines (11.5%), China (10.1%) Outcomes: Three years after landing: • Average income of $46,200 -

$53,300 • 89% of FSW employed

Other changes to FSW selection criteria: • Redistribute age points to benefit younger workers • Reduce maximum points for foreign work experience

to allow more points for language and age: increase points for Canadian work experience

• Increase integrity and simplify process for the Arranged Employment factor

• Revise adaptability to reward factors shown to predict best outcomes

• Give education points for the foreign credential’s Canadian equivalent

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Federal Skilled Worker Program (FSWP)

By the Numbers

Planned range for 2012: 55,000-57,000 FSW profile – PA Only (profession, education, age): 82.5% managerial and professionals; 16.3% skilled and technical. 51.3% have university education; 3.1% PhDs. Majority are age 30-39. Main provinces of destination: Ontario (64.5%), British Columbia (17.5%), Alberta (14.5%) Principal countries of origin: India (17.1%), Philippines (11.5%), China (10.1%) Outcomes: Three years after landing: • Average income of $46,200 -

$53,300 • 89% of FSW employed

Canadian Experience Class (CEC)

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Program overview: • Applicants are skilled temporary foreign workers, and

international students with a Canadian diploma, who have Canadian work experience and meet language requirements according to their occupation.

• Canada recently welcomed its 20,000th permanent resident through the Canadian Experience Class.

Proposed improvements: • Reduce work experience requirement for the Temporary

Foreign Worker stream from 24 months to 12 months in the preceding 36 months

By the Numbers

Planned range for 2012: 6,000-7,000 Principal countries of origin: China, India, USA Outcomes: 2011 (preliminary) Temporary Foreign Worker stream admissions: 3,214; post-graduation stream admissions 2,808

• This program will: o help fill labour market gaps in skilled trades

occupations o recognize different provincial certification processes o place safeguards on quality

• Over 28 occupational groups at the NOC B level fall under this program, including occupations in:

o Trades, Transport and Equipment; o Primary Industry; o Processing, Manufacturing and Utilities;

o Chefs and Cooks, and Bakers and Butchers

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Federal Skilled Trades Program: Overview

• Launch of a new Federal Skilled Trades Program (FSTP) in early 2013 to help select skilled workers who meet Canada’s current and evolving economic needs.

Program Criteria (Pass/Fail model with 4 requirements)

Arranged Employment OR P/T certificate of qualification to ensure that applicants are “job ready” upon arrival

Mandatory language threshold to ensure that health and safety standards are upheld and improve socio-economic integration

Work Experience: 2 years (in last 5) as a qualified skilled tradesperson to ensure that the applicant has recent and relevant practice as a qualified journeyperson

Education/Qualification: Satisfy National Occupational Classification (NOC) employment requirement to demonstrate that applicants have performed the essential duties of the occupation

Provincial Nominee Program (PNP)

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Program overview: • Immigrants nominated by a provincial or territorial

government based on regional needs, including those of employers, and individual’s ability to economically establish.

• Government of Canada makes the final selection decision and completes processing of applications on a priority basis subject to health, safety and security requirements.

• All of the provinces and territories except Quebec and Nunavut have signed nominee agreements with the federal government.

By the Numbers

Planned range for 2012: 42,000-45,000 PN profile (profession, education, age, work experience, language proficiency): About half are nominated under a Skilled Worker (university degree) stream, and one-fifth nominated under a Semi-skilled Worker (no university degree) stream; 85.7% have some post-secondary education; 81.8% speak English alone (self-report); 74.8% age 25-44, Main provinces of destination: Manitoba, Alberta, Saskatchewan Principal countries of origin: Philippines, China, India Outcomes: More than 90% declared employment earnings after one year in Canada; average income ranged between $35,200 and $45,100 after 3 years.

Moving forward: • Economic Action Plan 2012 committed Canada

to working with provinces and territories to improve the PNP by focusing on economic immigration streams in order to quickly respond to regional labour market demands

• The PNP introduced minimum language standards, along with mandatory language testing, for lower-skilled provincial nominees as of July 1, 2012

• Working with provinces and territories to implement recommendations from the national PNP evaluation

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Provincial Nominee Program (PNP) – cont’d

By the Numbers Planned range for 2012: 42,000-45,000 PN profile (profession, education, age, work experience, language proficiency): About half are nominated under a Skilled Worker (university degree) stream, and one-fifth nominated under a Semi-skilled Worker (no university degree) stream; 85.7% have some post-secondary education; 81.8% speak English alone (self-report); 74.8% age 25-44, Main provinces of destination: Manitoba, Alberta, Saskatchewan Principal countries of origin: Philippines, China, India Outcomes: More than 90% declared employment earnings after one year in Canada; average income ranged between $35,200 and $45,100 after 3 years.

Program overview: • Entrepreneurs must demonstrate at least 2 years of

business experience; possess a minimum net worth of $300K; demonstrate ability (and intention) to meet post-arrival conditions to manage a Canadian business.

• In July 2011, implemented a moratorium on new entrepreneur applications while program redesigned.

Entrepreneur Program

By the Numbers

Main provinces of destination: Ontario, Quebec, British Columbia Principal countries of origin: India, Egypt, Korea, China

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Moving forward

• In order to support Government of Canada economic priorities related to innovation and productivity, CIC is working to develop the new Start-Up Visa program based on the following principles: o Involve business/private sector in the evaluation of entrepreneurs;

o Target nascent entrepreneurs in the early stages of business development;

o Open the door to younger, globally focused entrepreneurs who are more willing to innovate and take risks;

o Put emphasis on the skills of an entrepreneur as opposed to their net worth.

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Entrepreneur Program – cont’d

By the Numbers

Main provinces of destination: Ontario, Quebec, British Columbia Principal countries of origin: India, Egypt, Korea, China

• The Start-Up Visa Program will be created through new authorities which allow the Minister to create small scale, short term economic classes through Ministerial Instructions

• CIC has been working to develop program details with the Canadian Association of Business Incubation, the National Angel Capital Organization and the Canadian Venture Capital Association

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Entrepreneur Program – cont’d

By the Numbers

Main provinces of destination: Ontario, Quebec, British Columbia Principal countries of origin: India, Egypt, Korea, China

Immigrant Investor Program (IIP)

Program overview: • Investors must demonstrate business experience; possess

a minimum net worth of $1.6M, make an investment of $800K.

• Growing inventory and processing times led to 2011’s annual cap of 700 new applications, to align application intake with processing realities.

• In July 2012, a temporary pause on new application intake was imposed until further notice

• Quebec runs its own Immigrant Investor Program

By the Numbers Main provinces of destination: British Columbia, Ontario Principal countries of origin: China (by far), Taiwan, Korea Outcomes: $504.4 million in investment funds allocated to participating provinces and territories in 2011. Under the Quebec IIP, $848.8 million in investment funds to Quebec in 2011

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Immigrant Investor Program (IIP) – cont’d

Moving forward:

• Online consultations held in summer 2012

• Seeking ways to target more active investment in Canadian growth companies and test new approaches to attract global high-value investors o Open to creative ideas and suggestions from the business community

on how to maximize the economic benefits of such programs to Canada

By the Numbers

Main provinces of destination: British Columbia, Ontario Principal countries of origin: China (by far), Taiwan, Korea Outcomes: $504.4 million in investment funds allocated to participating provinces and territories in 2011. Under the Quebec IIP, $848.8 million in investment funds to Quebec in 2011

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Temporary Foreign Workers (TFWs)

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Program overview: • Allows employers to hire foreign nationals on temporary

permits to fill shortages, subject in most cases to a labour market opinion.

• Jointly administered by CIC and Human Resources and Skills Development Canada with growing role for provinces/territories.

• Driven by demand, with no numerical limits and priority processing.

• HRSDC introduced an Accelerated LMO process in April 2012 for employers with a strong track record

• New wage methodology allows employers to offer wages up to 15% below the posted average wage provided that they can demonstrate that this is what they pay Canadians doing the same job in the same location

By the Numbers

# of TFWs admitted to Canada in 2011: 190,769 (a 73% increase since 2002) Total # of TFWs in Canada in 2011: 300,111 Employment profile (skill level): Management, professionals, skilled & technical, intermediate & clerical, elemental & labours Main provinces of destination: Ontario, British Columbia, Quebec, Alberta Principal countries of origin: US, Mexico, France, Australia, Philippines Onward trajectory: 32,827 TFWs transitioned to permanent residence in 2010

Moving forward: • Aligning the TFWP with labour market demands while

also ensuring businesses make all reasonable efforts to hire Canadians

• Further changes to improve worker protection and program integrity by imposing requirements on employers and verifying, at any time, employers’ compliance with requirements as well as consequences for non-compliance

• Program being reviewed to find ways to simplify the program and increase employer facilitation while developing a robust compliance system, and longer-term approaches to managing the entry of temporary workers and enhancing their mobility between employers and/or in selected sectors

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Temporary Foreign Workers (TFWs) – cont’d

By the Numbers

# of TFWs admitted to Canada in 2011: 190,769 (a 73% increase since 2002) Total # of TFWs in Canada in 2011: 300,111 Employment profile (skill level): Management, professionals, skilled & technical, intermediate & clerical, elemental & labours Main provinces of destination: Ontario, British Columbia, Quebec, Alberta Principal countries of origin: US, Mexico, France, Australia, Philippines Onward trajectory: 32,827 TFWs transitioned to permanent residence in 2010

Significant growth in employer use since 2000:

• Particularly marked in the Temporary Foreign Worker and Provincial Nominee Programs

Current conditions of use:

• Applicants with a connection to the job market (such as AEOs) are prioritized: o And have a higher likelihood of being accepted as permanent residents

o But process can be lengthy

• For TFWs - and AEO in the FSW program – favourable LMO required before employment offer can be made to prospective immigrants

• Employer registration and oversight mechanisms not considerable but are expanding

Government recognizes that the immigration system can be cumbersome and difficult to navigate, particularly for small and medium-sized enterprises

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The Employer Role in the Current Immigration System

To move from a supply-driven system marked by:

• An open-ended application regime with a legislated requirement to process all applications on a first come, first served basis

• Lengthy processing times and backlogs

• A limited role for employers

To a fast and flexible demand-derive system that:

• Is focused on supporting Canada's labour market needs – with a defined role for employers

• Delivers processing in months, not years

• Effectively manages intake and avoids backlogs

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The Government’s Objective

• Development of an Expression of Interest (EOI) approach for Canada is underway, informed by the New Zealand and Australian EOI experiences and in consultation with provinces, territories and employers.

• EOI is an innovation that will: o Improve processing times and eliminate backlogs by aligning application intake with processing

capacity o Make it possible to select the best candidates, not just those who happen to apply first o Create opportunities to increase the employer role in immigration and strengthen the

immigration system's labour market responsiveness

• Late 2014 proposed launch date for EOI in its initial form: o FSW program to be focus of launch o Other programs could be included at that time or at a later date

• Consultations and design work underway

Moving to an Expression of Interest approach – a major milestone in Canada’s immigration system modernization strategy

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A two stage process to skilled immigration involving a pre-screening of candidates: In the first stage:

• Candidates complete an online form with information such as: o Age, assessed language skills and education credentials, work experience, occupation, a job offer,

willingness to settle in a particular region

• EOI form represents candidate’s “expression of interest” in coming to Canada: o Form not an application but a first step in potentially being invited to apply for a skilled immigrant

visa in the second stage of the process

• Expressions of interest are entered into a pool where they can be ranked, sorted and searched on the basis of various factors including, e.g., points scores and occupation

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EOI: the Basic Concept

In the second stage:

• On the basis of clear, transparent rules, top candidates from the pool are invited to submit an application for an immigrant visa – along with supporting documentation

• Only if and when their EOI is drawn from the pool are candidates invited to apply: o EOIs not selected from the pool remain valid for a prescribed period before being withdrawn;

candidates may submit new EOI thereafter

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EOI: the Basic Concept – cont’d

More influence:

• Today employers play a limited and indirect role in the immigration program: o Resulting in, for instance, a fast track for AEOs and in some provinces, with PNP

• With EOI, a more direct means to access skilled workers is possible

Simpler approach:

• Today employers navigate a thicket of rules and requirements

• With EOI, a “single window” will be possible to facilitate access to in-demand skills

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Why Should Employers be Interested in EOI?

Faster processing:

• Despite improvements, Canada is still behind Australia and New Zealand in processing times

• With EOI, processing to take months not years

More choice:

• Today employers recruit and identify the skilled candidates for immigration they want

• With EOI’s pool of pre-qualified candidates, an additional source of skills will be available

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Why Should Employers be Interested in EOI? – cont’d

• The emergence of three broad economic immigration streams will be the result: 1) Federally-selected

2) PT-selected

3) Employer-selected

• With employers having a central role in 3) and the potential to broaden the current role they have under 1) and 2)

• Contemplated are: o The need for an employer registry, to confirm the bona fides of participating businesses, whether

large, small or medium-sized

o Different scenarios as to the most appropriate stage for the EOI process where employers can search the database and find candidates

o Options on facilitation and the best means for employers and candidates to make contact with each other and determine idf the fit is good

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Where this takes us: EOI, the Immigration System and Employers

Federal Skilled Workers, Canadian Experience Class, Federal Skilled Trades • Pre-publication of regulations occurred August 18, 2012 • Final publication by the end of 2012 • Program launch in 2013

Federal Immigrant Investor Program • Consultations during 2012 • Develop new program design 2012-13

Start-up Visa • Program design finalized in fall 2012 • Implementation in early 2013

Timelines for changes

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Temporary Foreign Worker Program • Regulatory changes in support of HRSD ALMO Fall 2012/Winter 2013 • Consultations on TFWP review in spring 2013 • Approval of program design in late 2013/2014 with implementation by end of

2014 Expression of Interest • Roll-out of EOI targeted for end of 2014

Timelines for changes cont’d

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