Canada’s labor market growth relies almost entirely on immigration, driving not only economic demand but also bolstering the country’s socialized welfare systems. However, this dynamic isn’t one-sided. Economic immigrants, the largest group among newcomers, must secure employment, earn income, and pursue permanent residence (PR) eligibility, a vital aspect of their settlement in Canada. Explore the most effective work permit pathways for newcomers in Canada that enable this reciprocal relationship, fostering economic growth and social welfare support.
Recognizing that economic immigrants require employment in addition to a work permit in order to become permanent residents (PR) of Canada is crucial to understanding their journey. An examination of these parameters’ historical data provides insightful information about the change from temporary foreign worker (TFW) status to permanent residency.
Two recent studies by Statistics Canada compared the employment histories and demographics of Canadians with work permits. These research, which cover the years 2010 through 2020, offer vital insights on this procedure.
Most effective work permit pathways for newcomers in Canada
Both the International Mobility Program (IMP) and the Temporary Foreign Worker Program (TFWP), which have different streams for different circumstances, are Canada’s two main work visa routes.
Making a distinction between these two programs is essential. In Canada, the TFWP is intended to alleviate labor market shortages, especially in cases where domestic resources are inadequate. A Labor Market Impact Assessment (LMIA), which assesses the possible effects of hiring a foreign worker on the Canadian labor market, is required for work permits under the TFWP. These work licenses are usually linked to a particular sector and business.
The IMP, on the other hand, advances Canada’s larger social, cultural, and economic goals. IMP work permits are typically in the form of open work permits, which let their holders work for almost any company across a range of industries and do not require an LMIA.
Changing landscape of work permits
The distribution of work permits has changed significantly during the last ten years. In 2010, authorities awarded work permits, with 32.9% being issued under the TFWP, and 42.4% being issued under the IMP. In 2021, TFWP granted work permits accounted for 15.1% of all work permits issued, while IMP issued work permits accounted for 54.6%. This is a significant difference.
Based on a ten-year analysis, the IMP has become increasingly prominent, as seen by the roughly four-fold rise in work permits issued during that time. Notably, work permits for study reasons and post-graduation employment were the two main immigration streams under the IMP that drove this development. As a result, the data shows how work permit programs are changing dynamically to meet the demands of Canada’s changing labor market.
The ten-year period saw a notable nearly twofold increase in the overall number of work permits issued, underscoring the growing significance of immigration in mitigating labor market shortages. At the same time, the TFWP saw a significant decrease, with the exception of certain industries like agriculture, which saw a modest increase.
Based on these observations, it appears that Canada is currently in a stronger position to use its current labor force to meet a large percentage of its labor market demands. Nonetheless, there are still a lot of open positions in a few important industries.
Considering these findings, individuals seeking work permits should consider the IMP for work authorization. Over the past decade, there has been a significant growth in streams related to “post-graduation employment” and “study purpose work permits.” This path offers unique advantages, including language improvement, networking opportunities, and Canadian qualifications, enhancing job market prospects.
Do these foreign workers actually secure employment opportunities in Canada?
Following the acquisition of a work permit in Canada, the subsequent move for many individuals is to embark on the journey towards permanent residency (PR). The accumulation of work experience plays a pivotal role in this process, as most economic PR pathways mandate a minimum of one year of qualifying work experience within Canada.
To gauge the success of work permit holders in securing employment, we can evaluate the proportion of individuals holding work permits in a given year to the total count of those who reported earning a positive income during the same timeframe. It’s important to emphasize that this analysis excludes self-employed individuals, as their type of employment does not impact their eligibility for PR.
682,500 people, or 68% of the 991,500 people with work permits in 2020, reported engaging in the labor market in order to earn a living. However, it’s important to take into account some factors that could reduce this proportion. Even if their permits are valid, some permit holders might not be actively looking for work or may not even be residents of Canada at the moment. The participation percentage rises to 83% of all permit holders if we take into account those with research permits who indicated making a profit in 2020. It’s important to remember, nevertheless, that employment done while enrolled as an international student does not apply toward permanent residency eligibility.
In contrast, the percentage of work permit holders who reported positive income in 2011 was only 55%, a year when there were 311,100 work permit holders nationwide—a much smaller figure than in previous years.
In which programs did individuals find the most employment opportunities?
The information goes into further detail, offering a breakdown of foreign employees who declared income in Canada according to age, work permit category, and length of stay.
Agricultural programs in the Temporary Foreign Worker Program (TFWP) had the highest reported positive revenue rate, at 92%. This rate was the highest not just among TFWP rates, but also in comparison to the International Mobility Program (IMP). This makes sense because TFWP work permits, which necessitate Labor Market Impact Assessments (LMIAs), usually accompany an offer of employment at the time the firm files the LMIA.
The post-graduation employment work permit holders had the greatest participation percentage (76%), among the IMP work permit streams. Holders of work permits from International Experience Canada (IEC) followed closely with a rate of 62%, and intra-company transferees led with a rate of 66%.
Ages 25 to 34 had the highest rate of labor market engagement, with 68% of those in possession of work permits reporting a positive income. The age bracket of 35–44, with a 67% participation percentage, came in close second.
When it came to work permit duration, those who had been able to work for a minimum of 10 to 12 months showed the highest rate of labor market participation (74%), along with positive incomes. Those whose permits were good for seven to nine months came in second, at 67%. Notably, participation rates and the duration of work licenses consistently correlated positively.
Most effective work permit pathways for newcomers in Canada – Best pathway
Taking these results into account, it is clear that the International Mobility Program (IMP) has become more significant when it comes to granting work permits, especially those that are associated with or follow study programs. Furthermore, with the exception of specialized streams like the agriculture streams under the Temporary Foreign Worker Program (TFWP), this category has the greatest average labor market participation rate. This begs the question of whether the best chance of getting a work visa, doing well in the job market, and ultimately earning permanent residency is to pursue study choices in Canada before looking for work.
While Statistics Canada statistics support this idea, the best route to a work visa and eventual permanent residency depends on unique circumstances and traits, particularly when considering other factors such as foreign tuition costs.
The aforementioned studies also have certain disadvantages, such as an antiquated and sluggish technique of counting current work permit holders that might not precisely represent their actual numbers in Canada. These restrictions also include the inability to discern between persons with permits who are actively looking for employment and those who are not, as well as the removal of independent contractors from the immigration analysis, which lowers the group under study’s overall labor market participation rate.
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