Recruiting Immigrant Workers CANADA Canada has not only the largest in terms of numbers, but also the most elaborate and longest-standing skilled labour migration system in the OECD. Largely as a result of many decades of managed labour migration, more Recruiting Immigrant Workers than one in five people in Canada is foreign-born, one of the highest shares in the OECD. 60% of Canada’s foreign-born population are highly educated, the highest share OECD-wide. The recent introduction of Express Entry, a two-step selection system based on an initial pre-sreening of suitable candidates who enter a pool CANADA by Expression of Interest and subsequent selection of the most skilled candidates from the pool, has further enhanced the competitive edge of the selection system relative to other countries. It also ensures that those with the skills to succeed are admitted to Canada in a quick and efficient way. Core to Canada's success is not only the elaborate selection system itself, but also the innovation and infrastructure around it, which ensures constant testing, monitoring and adaptation of its parameters. This includes a comprehensive and constantly improving data infrastructure, coupled with the capacity to analyse it, and swift policy reaction to new evidence and emerging challenges. R e c r u it in g Im m ig r a n t W Consult this publication on line at https://doi.org/10.1787/4abab00d-en. o r k e This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. r s Visit www.oecd-ilibrary.org for more information. C A N A D A ISBN 978-92-64-35325-1 2019 9HSTCQE*dfdcfb+ Recruiting Immigrant Workers: Canada 2019 This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries. 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FOREWORD 3 Foreword This review of Canada’s labour migration policy is the tenth in a series conducted by the OECD Secretariat as a follow-up to the 2009 High Level Policy Forum on International Migration. The rationale for this initiative was the recent growth in labour migration observed in many countries and the likelihood that recourse to labour migration would increase in the context of demographic ageing. Prior to the global economic crisis of the late 2000s, many countries had made substantial changes to labour migration policies with a view to facilitating recruitment from abroad. With the introduction of these changes, more prominence was accorded to the question of their effectiveness, and more broadly to the objectives of labour migration policy in general. Although the economic crisis put a damper on labour migration movements, it did not stop them entirely, and interest in labour migration policy is unlikely to diminish in the near future. The central objective of labour migration policy is to help meet those labour market needs which cannot be satisfied through tapping domestic labour supply in a reasonable timeframe, without adversely affecting the domestic labour market and without hindering development prospects in vulnerable origin countries. Although the objective itself can be easily stated, specifying the criteria for assessing the success of policy in achieving it is a complex matter. It involves evaluating how well labour market needs have been identified and whether migration has had an impact on the labour market, both of which are analytically difficult. This series of reviews addresses the question of whether labour migration policy is effective in meeting labour market needs without adverse effects, and whether the policy is efficient. To address these questions, this review aims to analyse two key areas: i) the labour migration system and its characteristics, in terms of policies in place and the labour migrants who arrive; and ii) the extent to which it is responding to the current and forecasted needs of the domestic labour market, as well as any impact on the latter. Canada faces a similar discussion as other OECD countries regarding the capacity of its labour migration policy to meet current but also unknown future skill needs. It is in this context that Canada requested the OECD review its labour migration policy. Since 2015, Canada introduced a federal expression of interest system (Express Entry) for the selection of permanent high-skilled labour migrants, overhauled its temporary foreign worker programme, piloted new immigration programmes and enhanced the role played by provincial and territorial governments in labour migration management. Canada is a nation built on immigration and immigration is also key to maintaining a high-skilled workforce in Canada. This review assesses the performance of the RECRUITING IMMIGRANT WORKERS: CANADA © OECD 2019 4 FOREWORD new permanent labour migration system in international comparison, following its first years of operation. It also considers the role of temporary migration policy in the specific context of a country with a large permanent migration system. Finally, it looks at the possibilities of provinces and territories to select migrants, the characteristics of the latter, and the impact of this selection in a country where all permanent labour migrants enjoy nationwide mobility. RECRUITING IMMIGRANT WORKERS: CANADA © OECD 2019 ACKNOWLEDGEMENTS 5 Acknowledgements This review was drafted by the OECD’s International Migration Division. Chapters 1-3 were prepared by Elisabeth Kamm with contributions from Sankar Ramasamy, Erik Krassoi Peach and Martina Belmonte. Chapter 4 was prepared by Ana Damas de Matos. Thomas Liebig co-ordinated the report. It benefitted from valuable comments by Jonathan Chaloff, Jean-Christophe Dumont, Veronique Gindrey, Philippe Herve and Mark Pearson. Joanne Dundon, Liv Gudmundson, Anna Tarutina and Lauren Thwaites provided publication support. This review would not have been possible without the support of Immigration, Refugees and Citizenship Canada and the Canadian Delegate to the OECD Working Party on Migration, Mr. Matt de Vlieger. The Secretariat would like to thank Employment and Social Development Canada as well as Statistics Canada for data provided and valuable comments. Special thanks go to Yehuala Dagnachew, Colleen Dempsey, Ying Gai, Martha Justus, Ümit Kiziltan, Stanley Kustec, Stephanie Leung, Scott McLeish, Corinne Prince, Zhining Qi, Danijela Stojanovic, Arthur Sweetman, Fraser Valentine and Xiaoyi Yan for their support and advice throughout the project. The OECD Secretariat would like to thank the Canadian authorities involved in this project and, indeed, all of their contacts in Canada who provided timely information and responded to the numerous questions raised. RECRUITING IMMIGRANT WORKERS: CANADA © OECD 2019 TABLE OF CONTENTS 7 Table of contents Foreword ................................................................................................................................................ 3 Acknowledgements ................................................................................................................................ 5 Acronyms and abbreviations .............................................................................................................. 11 Executive summary ............................................................................................................................. 13 Assessment and recommendations ..................................................................................................... 17 Summary of main policy recommendations ...................................................................................... 27 Chapter 1. Context for labour migration to Canada ....................................................................... 29 Introduction ........................................................................................................................................ 30 Overview of labour migration flows and the economic and demographic context ........................... 31 Evolution of Canadian immigration policy ........................................................................................ 40 Key actors in the management of labour migration to Canada .......................................................... 51 Composition of labour migration to Canada ...................................................................................... 54 Notes .................................................................................................................................................. 60 References .......................................................................................................................................... 62 Chapter 2. Permanent labour migration ........................................................................................... 65 Evolution of the Points-Based System ............................................................................................... 66 Express Entry ..................................................................................................................................... 71 Key issues in the functioning of Express Entry ................................................................................. 85 Federal permanent labour migration outside of Express Entry ........................................................ 109 Conclusion ....................................................................................................................................... 111 Notes ................................................................................................................................................ 113 References ........................................................................................................................................ 115 Annex 2.A. Canada’s points system and process comparison ......................................................... 119 Chapter 3. Temporary labour migration ........................................................................................ 123 Overview of temporary labour migrant groups................................................................................ 124 Common issues for the management of temporary labour migration .............................................. 153 Conclusion ....................................................................................................................................... 164 Notes ................................................................................................................................................ 166 References ........................................................................................................................................ 169 Chapter 4. Provincial migration management ................................................................................ 171 The interaction between the federal and the provincial governments in selecting labour migrants 172 Federal versus provincial programmes: a comparison between Canada and Australia ................... 179 Economic immigrants selected by federal and by provincial governments: A comparison ............ 180 Inter-provincial mobility of labour immigrants ............................................................................... 188 Settlement of provincially selected immigrants within provinces ................................................... 194 Conclusion ....................................................................................................................................... 196 RECRUITING IMMIGRANT WORKERS: CANADA © OECD 2019 8 TABLE OF CONTENTS Notes ................................................................................................................................................ 198 References ........................................................................................................................................ 199 Tables Table 1.1. Departments in charge of Canadian immigration policy, 1887 to present ........................... 41 Table 1.2. Canada’s immigration levels plan for economic immigration, 2019-21 .............................. 54 Table 2.1. Evolution of the Points-Based System (current FSW entry grid) 1967 to present ............... 69 Table 2.2. FSW entry grid points allocation .......................................................................................... 77 Table 2.3. Total points allocation in the Comprehensive Ranking System ........................................... 79 Table 2.4. Points for core and human capital factors in the CRS .......................................................... 79 Table 2.5. Points distribution in EOI systems ....................................................................................... 83 Table 2.6. Skill transferability points in the CRS .................................................................................. 84 Table 2.7. How the CRS values foreign and Canadian work and study experience ............................. 95 Table 2.8. Most common occupations among invitations issued in percent, 2015-18 ........................ 101 Table 3.1. Median hourly wages in CAD by province or territory...................................................... 129 Table 3.2. Key assessment criteria by TFW Program streams ............................................................ 134 Table 3.3. Processing times of TFW work permit applications, 2015-18 ........................................... 138 Table 3.4. Refusal rates of TFW work permit applications, 2015-18 ................................................. 138 Table 3.5. Completed TFW Program inspections, by fiscal year and outcome .................................. 139 Table 3.6. Completed IMP inspections by fiscal year and outcome ................................................... 148 Table 3.7. International students by citizenship and sign year, 2015-18 ............................................. 150 Table 3.8. Study permit approval rate in % by province, 2014-18 ...................................................... 153 Table 4.1. Provincial Nominees, agreements and PA admissions by province in 2017 ...................... 174 Table 4.2. Education level of provincially and federally selected labour immigrants (PAs) .............. 182 Table 4.3. Skill type of intended occupations of provincially and federally selected labour immigrants ................................................................................................................................... 184 Table 4.4. Share of immigrants reporting employment earnings by PT of landing and immigration programme................................................................................................................................... 186 Annex Table 2.A.1. Comprehensive Ranking System ........................................................................ 119 Annex Table 2.A.2. EOI systems in comparison ................................................................................ 122 Figures Figure 1.1. Permanent labour immigration in selected OECD countries, 2017 .................................... 31 Figure 1.2. Acquisition of nationality among immigrants ..................................................................... 32 Figure 1.3. Percentage of tertiary-educated native- and foreign-born ................................................... 33 Figure 1.4. Talent shortage in international comparison, 2018 ............................................................. 36 Figure 1.5. Permanent landed economic immigrants, 2017 .................................................................. 37 Figure 1.6. Permanent landed economic immigrants relative to population, 2017 ............................... 38 Figure 1.7. Old-age dependency ratio ................................................................................................... 39 Figure 1.8. Difference between age-related entries and exits from the working-age population in OECD countries, based on the 2015 population............................................................................ 39 Figure 1.9. Total and relative annual permanent migration inflows, 1860 to 2020............................... 42 Figure 1.10. Labour immigrants by province and migration programme, 2017 ................................... 45 Figure 1.11. Totals and shares of permanent immigrants by entry stream, 1980-2020......................... 48 RECRUITING IMMIGRANT WORKERS: CANADA © OECD 2019