Express Entry Update: First non-LMIA/LMO, non-PNP Nomination Invitations have been Released

Posted on March 24, 2015 by CICS Immigration Team

Close to three months after the new Express Entry system started, and after four invitations, the first set of instructions have been released, where some of the invitees did not have LMIA/LMO’s or PNP nominations.

On March 20th, 2015, Express Entry system, round #5 was released. The number of invitees totalled 1620. The minimum score of those invited is 481.

This is great news for the majority of applicants in the Express Entry pool as many have started to feel discouraged by the high number of points in the previous four invitations.

What do the Experts think?

As licensed immigration consultant Alex Khadempour points out, there is no need to panic: “This is just the start. Immigration Canada did not want to open the floodgates by inviting a high number of people at the beginning. This is why only those with PNP nominations or LMOs/LIMAs were invited at first to make sure the system works. You will now see the minimum score start to go down.”

Immigration Canada accepts over 160,000 applicants a year under the economic programs such as Federal Skilled Worker, Canadian Experience Class, Federal Skilled Trades and some PNP programs. Only a small fraction of these applicants have LMOs/LMIAs or PNP nominations.

Tips for Applicants

Alex Khadempour adds: “Calculated patience is always necessary when it comes to dealing with immigration, especially when a new program or system is launched. You should keep your eyes on the minimum scores and see how close you are. At the same time, if there is an opportunity for you to receive a provincial nomination or an LMIA, which guarantee that you will be selected and invited, you should take advantage of that opportunity.It’s also very important to approach this process with caution and precision. One tiny mistake in one of the steps can ruin your chances in the future.”

Be sure to go over all the guidelines, regulations and seek professional help, if necessary, to make sure you don’t make any errors in how you submit your information and approach the multi-step application process.

779 candidates have been selected under the Express Entry system

Posted on February 10, 2015 by CICS Immigration Team

express-entry-cics

The 779 candidates who were selected, have two months to submit a complete application for permanent residence after receiving a letter, requesting that they submit a full application. This is the first draw from the Express Entry pool where candidates who are qualified under one the economic immigration programs, which consist of Federal Skilled Worker, Canadian Experience Class, Federal Skilled Trades and a portion of nominated applicant through the provincial programs.

This draw indicates that the new Express Entry system is working and that submitting a profile can truly lead to permanent residence.

Canada has purposely kept the first draw small as this is the first time where Immigraiton Canada can fix any potential glitches or problems and to test and make sure that the process moves forward without issues.

Candidates in the Express Entry pool are ranked according to a Ranking System (CRS) based on a number of factors and only top ranked candidates are invited to apply. For this first draw, the candidates selected had relatively high scores. The candidates all had either a provincial nomination or an LMIA (Labour Market Impact Assessment – Qualifying job offer), which guarantees that you will have enough points to be selected under Express Entry.

CIC has indicated its intention to conduct up to 25 draws this year and plans on meeting its immigration targets 285,000 under the 2015 immigration plan. Of that, it is expected that over 180,000 will be selected under the Express Entry system. Future draws are expected to occur more frequently and the government is expected to issue a much greater number of invitations to apply to a wider array of candidates in the Express Entry pool.

CIC expects that a significant proportion of invitations to apply for Canadian permanent residence will be issued to people without job offers from Canadian employers as there simply are not enough people with validated job offers or provincial nominations to fill the need for skilled immigrants.

Alex Khadempour, senior immigration consultant at CICS Immigration Consulting Inc. advises: “If you’re planning to apply under Express Entry, do it as soon as you can show that you are qualified for one of the economic programs. This includes having your IELTS test score, and if trying to qualify under Federal Skilled Worker, your Education Credential Assessment. However, it’s important that you don’t rush into the first step of the process, as this is where you need to make sure that you are able to present the best possible and strongest application with your work experience as the focal point. Mistakes at the beginning of the process can severely damage your following plans.”

Express Entry – How It Works and the Ranking System

Posted on December 4, 2014 by CICS Immigration Team

Express Entry will manage applications for permanent residence under these federal economic immigration programs:

Provinces and territories will also be able to recruit candidates from the Express Entry system through their Provincial Nominee Programs to meet local labour market needs.

Ministerial Instructions set out the rules for governing the Express Entry application management system.

The Express Entry system has two steps:

Step 1) Potential candidates complete an online Express Entry profile

Potential candidates will complete an online Express Entry profile. This is a secure form that they will use to provide information about their:

skills,
work experience,
language ability,
education, and
other details that will help us assess them.

Those who meet the criteria of one of the federal immigration programs listed above will be accepted into a pool of candidates.

Anyone who does not already have a job offer supported by a Labour Market Impact Assessment (LMIA) (if you need one), or a nomination from a province or territory, must register with Employment and Social Development Canada’s (ESDC) Job Bank. Job Bank will help connect Express Entry candidates with eligible employers in Canada.

Candidates are also encouraged to promote themselves to employers in other ways, such as using job boards, recruiters etc.

In most cases when there is a job being offered to a candidate, employers will need an LMIA from ESDC. The LMIA process ensures employers have made an effort to hire Canadians for available jobs. There will be no LMIA fee for permanent resident applications.

Step 2) The highest-ranking candidates in the pool will be invited to apply for permanent residence

Candidates will be ranked against others in the pool using a point-based system called the Comprehensive Ranking System. Points are awarded using the information in their profile.

Candidates with the highest scores in the pool will be issued an Invitation to Apply. Candidates will be awarded points for:

a job offer, and/or
a nomination from a province or territory, and/or
skills and experience factors.

A candidate can get additional points for:

a job offer supported by a Labour Market Impact Assessment, or
a nomination by a province or territory

These additional points will make a candidate rank high enough to be invited to apply at the next eligible draw of candidates.

If someone is invited to apply, they will have 60 days to submit an online application for permanent residence.

Citizenship and Immigration Canada will process the majority of complete applications (meaning those with all the necessary supporting documents) in six months or less.

Candidates can stay in the pool for up to 12 months. If they do not get an Invitation to Apply for permanent residence within 12 months of submitting an Express Entry profile, they may submit a new profile. If they still meet the criteria, they can re-enter the pool. This will prevent backlogs and ensure quick processing times.

Express Entry – Comprehensive Ranking System (CRS) criteria

**A) Summary of points per factor for Express Entry candidates**
A. Core / human capital factors	Points per factor – With a spouse or common-law partner	Points per factor – Without a spouse or common-law partner
Age	100	110
Level of education	140	150
Official languages proficiency	150	160
Canadian work experience	70	80

**B) Summary of points per factor for Express Entry candidates**
B. Spouse or common-law partner factors	Maximum 40 points
Level of education	10
Official language proficiency	20
Canadian Work Experience	10
A. Core/human capital + B. Spouse or common-law partner factors	Maximum 500 points (with a spouse or common-law partner)	Maximum 500 points (without a spouse or common-law partner)

**C) Summary of points per factor for Express Entry candidates**
C. Skill Transferability factors	Maximum 100 points
Education	Maximum 50 points
With good/strong official languages proficiency and a post-secondary degree	50
With Canadian work experience and a post-secondary degree	50
Foreign work experience	Maximum 50 points
With good/strong official languages proficiency and foreign work experience	50
With Canadian work experience and foreign work experience	50
Certificate of qualification (for people in trade occupations)	Maximum 50 points
With good/strong official languages proficiency and a certificate of qualification	50
A. Core/human capital + B. Spouse or common-law partner + C. Transferability factors	Maximum 600 points

**D) Summary of points per factor for Express Entry candidates**
D. Additional points	(maximum 600)
Arranged employment	600
PN nomination	600
A. Core/human capital + B. Spouse or common-law partner factors + C. Transferability factors + D. = Grand total – 1,200

CRS – Core factors

Core / human capital factors	With a spouse or common-law partner (Maximum 460 points)	Without a spouse or common-law partner (Maximum 500 points)
Age	Number of points (100 maximum)	Number of points (110 maximum)
17 years of age or less	0	0
18 years of age	90	99
19 years of age	95	105
20 to 29 years of age	100	110
30 years of age	95	105
31 years of age	90	99
32 years of age	85	94
33 years of age	80	88
34 years of age	75	83
35 years of age	70	77
36 years of age	65	72
37 years of age	60	66
38 years of age	55	61
39 years of age	50	55
40 years of age	45	50
41 years of age	35	39
42 years of age	25	28
43 years of age	15	17
44 years of age	5	6
45 years of age or more	0	0
Level of Education	With a spouse or common-law partner – Number of points (140 maximum)	Without a spouse or common-law partner – Number of points (150 maximum)
Less than Secondary school (high school) credential	0	0
Secondary school (high school) credential	28	30
One-year post-secondary program credential	84	90
Two-year post-secondary program credential	91	98
Post-secondary program credential of three years or longer	112	120
Two or more post-secondary program credentials AND at least one of these credentials was issued on completion of a post-secondary program of three years or longer	119	128
University-level credential at the Master’s level OR an entry-to-practice professional degree. CIC only accepts as an entry-to-practice professional degree, those degrees issued in relation to an occupation listed at NOC Skill level A and for which licensing by a provincial regulatory body is required.	126	135
University-level credential at the Doctoral level	140	150
Official languages proficiency – first official language Reading, writing, speaking and listening total points for each ability: 32 with a spouse or common-law partner 34 without a spouse or common-law partner	With a spouse or common-law partnerMaximum 128 points	Without a spouse or common-law partner Maximum 136 points
For each ability	32	34
Less than CLB 4	0	0
CLB 4 or 5	6	6
CLB 6	8	9
CLB 7	16	17
CLB 8	22	23
CLB 9	29	31
CLB 10 or more	32	34
Official languages proficiency – second official language Reading, writing, speaking and listening total points for each ability: 5.5 with a spouse or common-law partner 6 without a spouse or common-law partner	With a spouse or common-law partnerMaximum 22 points	Without a spouse or common-law partner Maximum 24 points
For each ability	6	6
CLB 4 or less	0	0
CLB 5 or 6	1	1
CLB 7 or 8	3	3
CLB 9 or more	6	6
Canadian work experience	With a spouse or common-law partnerMaximum 70 points	Without a spouse or common-law partner Maximum 80 points
None or less than a year	0	0
1 year	35	40
2 years	46	53
3 years	56	64
4 years	63	72
5 years or more	70	80
Subtotal – Core / human capital factors	Out of 460 points	Out of 500 points

CRS – Spouse or common-law partner factors (if applicable)

Spouse or common-law partner factors	With spouse or common-law partner – number of points per factor	Without spouse or common-law partner (0 points – does not apply)
Spouse’s or common-law partner’s level of education	10	0
Less than secondary school (high school) credential	0
Secondary school (high school) credential	2
One-year post-secondary program credential	6
Two-year post-secondary program credential	7
Post-secondary program credential of three years or longer	8
Two or more post-secondary program credentials AND at least one of these credentials was issued on completion of a post-secondary program of three years or longer	9
University-level credential at the Master’s level OR an entry-to-practice professional degree. CIC only accepts as an entry-to-practice professional degree, those degrees issued in relation to an occupation listed at NOC Skill level A and for which licensing by a provincial regulatory body is required.	10
University-level credential at the Doctoral level	10
Spouse’s or common-law partner’s official languages proficiency – first official languageReading, writing, speaking and listening– total points for each ability	Maximum 20 points	0 (does not apply)
For each ability	5
CLB 4 or less	0
CLB 5 or 6	1
CLB 7 or 8	3
CLB 9 or more	5
Canadian work experience	Maximum 10 points	0 (does not apply)
None or less than a year	0
1 year	5
2 years	7
3 years	8
4 years	9
5 years or more	10
Subtotal – Core / human capital + Spouse or common-law partner factors	500	500

CRS – Skill transferability factors

Skill Transferability factors	Maximum 100 points for this section
Education	Maximum 50 points for Education
With good official language proficiency and a post-secondary degree	Maximum 50 points
	Points for CLB 7 or more on all first official language abilities, one or more under 9	Points for CLB 9 or more on all four first official language abilities
Secondary school (high school) credential or less (levels 1 & 2)	0	0
Post-secondary program credential of one year or longer (levels 3,4 & 5)	13	25
Two or more post-secondary program credentials AND at least one of these credentials was issued on completion of a post-secondary program of three years or longer (levels 6,7 & 8)	25	50
With Canadian work experience and a post-secondary degree	Maximum 50 points
	Points for education + 1 year of Canadian work experience	Points for education + 2 years or more of Canadian work experience
Secondary school (high school) credential or less (levels 1 & 2)	0	0
Post-secondary program credential of one year or longer (levels 3,4 & 5)	13	25
Two or more post-secondary program credentials AND at least one of these credentials was issued on completion of a post-secondary program of three years or longer (levels 6,7 & 8)	25	50
Foreign work experience	Maximum 50 points for Foreign work experience
With good official language proficiency and foreign work experience	50 points
	Points for foreign work experience + CLB 7 or more on all first OL abilities, one or more under 9	Points for foreign work experience + CLB 9 or more on all four first OL abilities
No foreign work experience	0	0
1 or 2 years of foreign work experience	13	25
3 years or more of foreign work experience	25	50
With Canadian work experience and foreign work experience	Maximum 50 points
	Points for foreign work experience + 1 year of Canadian work experience	Points for foreign work experience + 2 years or more of Canadian work experience
No foreign work experience	0	0
1 or 2 years of foreign work experience	13	25
3 years or more of foreign work experience	25	50
Certificate of qualification (trade occupations)	Maximum 50 points for this section
With good official language proficiency and a certificate of qualification	Maximum 50 points
	Points for certificate of qualification + CLB 5 or more on all first OL abilities, one or more under 7	Points for certificate of qualification + CLB 7 or more on all four first OL abilities
With a certificate of qualification	25	50
Subtotal: A. Core + B. Spouse or common-law partner + C. Skill transferability factors	600
Additional points	Maximum 600 points
1) Arranged employment OR	600
2) Provincial or territorial nomination	600
Grand total	Maximum 1,200 points

Breaking News: New Occupation List and Cap limits for Federal Skilled Worker Program (FSWP), Federal Skilled Trades Program (FSTP) and Canadian Experience Class (CEC)

Posted on April 24, 2014 by CICS Immigration Team

breaking-news-fsw

April 23, 2014 — Canada’s Citizenship and Immigration Minister Chris Alexander today announced new measures in key economic immigration programs to prepare for next year’s launch of Express Entry, Canada’s new active recruitment model.

To prepare for the launch of Express Entry in 2015, Citizenship and Immigration Canada will begin accepting applications under new caps for the Federal Skilled Worker Program (FSWP), Federal Skilled Trades Program (FSTP) and Canadian Experience Class (CEC), starting May 1, 2014. These measures will ensure a steady supply of skilled workers who are settling in Canada permanently and helping to supplement the Canadian workforce in areas where there are skills shortages.

Federal Skilled Worker Program:

Federal Skilled Workers are chosen as permanent residents based on their ability to prosper in Canada. They are assessed according to a selection grid made up of six factors, including language, education, work experience, etc.

Overall cap of 25,000 applications in eligible occupations stream
Cap of 500 applications for PhD eligibility stream
No limit on applicants who have a valid job offer from a Canadian employer
Sub-caps of 1,000 applications for each of the 50 eligible occupations below (their 2011 National Occupational Classification (NOC) code is included in brackets):

Senior managers – financial, communications and other business services (0013)
Senior managers – trade, broadcasting and other services, n.e.c. (0015)
Financial managers (0111)
Human resources managers (0112)
Purchasing managers (0113)
Insurance, real estate and financial brokerage managers (0121)
Managers in health care (0311)
Construction managers (0711)
Home building and renovation managers (0712)
Managers in natural resources production and fishing (0811)
Manufacturing managers (0911)
Financial auditors and accountants (1111)
Financial and investment analysts (1112)
Securities agents, investment dealers and brokers (1113)
Other financial officers (1114)
Professional occupations in advertising, marketing and public relations (1123)
Supervisors, finance and insurance office workers (1212)
Property administrators (1224)
Geoscientists and oceanographers (2113)
Civil engineers (2131)
Mechanical engineers (2132)
Electrical and electronics engineers (2133)
Petroleum engineers (2145)
Information systems analysts and consultants (2171)
Database analysts and data administrators (2172)
Software engineers and designers (2173)
Computer programmers and interactive media developers (2174)
Mechanical engineering technologists and technicians (2232)
Construction estimators (2234)
Electrical and electronics engineering technologists and technicians (2241)
Industrial instrument technicians and mechanics (2243)
Inspectors in public and environmental health and occupational health and safety (2263)
Computer network technicians (2281)
Nursing co-ordinators and supervisors (3011)
Registered nurses and registered psychiatric nurses (3012)
Specialist physicians (3111)
General practitioners and family physicians (3112)
Dietitians and nutritionists (3132)
Audiologists and speech-language pathologists (3141)
Physiotherapists (3142)
Occupational therapists (3143)
Respiratory therapists, clinical perfusionists and cardiopulmonary technologists (3214)
Medical radiation technologists (3215)
Medical sonographers (3216)
Licensed practical nurses (3233)
Paramedical occupations (3234)
University professors and lecturers (4011)
Psychologists (4151)
Early childhood educators and assistants (4214)
Translators, terminologists and interpreters (5125)

Federal Skilled Trades Program:

This program is for people who want to become permanent residents based on being qualified in a skilled trade.

Overall cap of 5,000 applications
All 90 skilled trades from the following NOC Skill Level B groups are eligible (with sub-caps of 100 applications each):
- Major Group 72: Industrial, electrical and construction trades;
- Major Group 73: Maintenance and equipment operation trades;
- Major Group 82: Supervisors and technical occupations in national resources, agriculture and related production;
- Major Group 92: Processing, manufacturing and utilities supervisors and central control operators;
- Minor Group 632: chefs and cooks;
- Minor Group 633: butchers and bakers.

Canadian Experience Class:

This program is for people who already have skilled work experience in Canada and want to immigrate permanently.

Overall cap of 8,000 applications
Sub-caps of 200 applications each for any NOC B occupation
Six ineligible occupations: administrative officers (NOC code 1221), administrative assistants (1241), accounting technicians/bookkeepers (1311), cooks (6322), food service supervisors (6311), and retail sales supervisors (6211).

The new Ministerial Instructions will also re-confirm the existing pause of applications to the federal Immigrant Investor and Entrepreneur Programs.

Canada’s skills gap continues to widen, according to study

Posted on October 26, 2013 by CICS Immigration Team

Skilled Workers are high in demand all over the world, including Canada.
Photo by ThisisEngineering RAEng on Unsplash

According to a new study from global recruiting firm Hays PLC, which surveyed the skills gap in 30 developed countries around the world, Canada ranks ninth for the severity of its skills shortage, and its score deteriorated in the past year.

Countries such as Japan, the United States, Germany and Sweden top the list in skilled worker shortage.

The report highlights two key findings

First, the state and the efficiency of a labour market in any particular country is not necessarily driven by the state of the economy in that point in time. Rather, the data suggests through the index that the efficiency of the labour market is driven by more structural factors. That said, the governments can introduce reforms to improve those structural factors, regardless of where they are in the economic cycle.

The second key finding that the index illustrates is that there is a very strong link between the efficiency of an educational system and the ability of that economy to produce the talent that the nation’s industries require both today and in the future. Making sure that business and the educational systems are in sync to produce sufficient numbers of the right quality graduates in the right areas for future talent. That’s the fundamental part of what drives the efficiency in any particular market.

As the global economy recovers and as the Canadian work force continues to age, without a change in policy, the situation in Canada and other developed countries will likely get worse. Canada is falling behind in implementing enough changes to meet the demand for highly skilled migration.

How to improve the skilled worker shortage and avoid disaster in the future

As according to Alistair Cox, the chief executive of Hays PLC, there are three areas where business and the governments can work together to strengthen these labour markets and reduce these inefficiencies that we see in some of these economies:

The first is for the government to foster a business environment of flexibilities, where businesses can build the work force they need for the future. This can be achieved through flexible working arrangements and skilled immigration.

The second method is to make sure that the educational system in an economy are really tuned into what businesses are going to need in the future in terms of the number of right skills.

The third is for businesses to look at their own policy in terms of attracting and retaining staff. Not just younger staff but also retaining and retraining older staff within their own work force.

Immigration Canada making changes

It’s not yet known how effective it will be, however, Canada is working on some changes in the system that are expected to be implemented in late 2014. Last year, Immigration Canada and the provinces, reached an agreement on the future of Canadian immigration system. The system will give the provinces a central role in immigrant selection. This new system will be based on a model called Expression of Interest (EOI).

The EOI model is an immigrant selection process which requires those seeking to immigrate to first file a simplified application, with immigration authorities. From that pool of applicants, the most promising candidates, based on the immigration department’s selection criteria, are then selected, and invited to submit a full application which includes documentation to prove their claimed qualifications.

Canadian Government Celebrates First Skilled Trades Immigrant

Posted on August 28, 2013 by CICS Immigration Team

Citizenship and Immigration Minister Chris Alexander welcoming one of the first successful Federal Skilled Trades Program applicants (Citizenship and Immigration Canada)

New Canadian Citizenship and Immigration Minister Chris Alexander this month welcomed Eric Byrne, a Canadian immigrant from Ireland, and one of the first individuals to become a permanent resident of the country through the Federal Skilled Trades Program (FSTP), in a press conference to promote the new immigration program.

Describing the program’s connection to the Canadian government’s broader economic goals, Alexander said:

“Our Government remains focused on job creation, economic growth and long-term prosperity. The new Federal Skilled Trades Program enables us to attract and retain skilled workers—like Eric—so we can address regional labour shortages and strengthen Canada’s economy.”

Byrne met the FSTP’s first requirement, a Certificate of Qualification from a provincial trades authority – in his case the Ontario College of Trades – in May 2012, and is currently employed as a plumber for University Plumbing and Heating.

He initially entered Canada through the country’s working holiday program, called International Experience Canada.

The reciprocal visa program allows the young adults of countries that Canada has a working holiday agreement with, like Ireland, to work and live in the Canada for a period of one to two years, while Canadian youth are given the same opportunity in the contracting country.

The program grants a maximum of 6,350 two year working holiday visas to Irish permanent residents and citizens per year. The visas have become highly sought after in Ireland, with the annual quota being met just two days after the program began accepting applications in 2013.

Part of new immigration selection strategy

The increasing reliance on the International Experience Canada program, the Canadian Experience Class (CEC), and new immigration programs that target foreign nationals with skills in demand in Canada, like the FSTP, for selecting new immigrants, began during Jason Kenney’s tenure as Citizenship and Immigration minister.

The aim of this new direction in immigration selection is to reverse the trend seen of highly educated immigrants arriving in Canada and having difficulty integrating into the economy, resulting in a growing employment and income gap between new immigrants and the general population.

By choosing applicants from countries more similar in language and economic structure to Canada, those who have Canadian work experience, and those who are certified to work in their vocation in Canada, the immigration ministry hopes new immigrants can immediately start contributing to the Canadian economy at the same rates as native born Canadians.

For his part, Kenney, who is now the Minister of Employment and Social Development, welcomed another one of the first successful applicants of the FSTP, Paul Lyttle, who is working as an electrician for Calgary-based Unitech Electrical Contracting Inc.

He promoted the program as a positive for the Canadian economy.

“The new Federal Skilled Trades Program is a significant improvement to Canada’s immigration system which, for too long, had not been open to in-demand skilled workers. Immigrants like Paul are set for success and I am pleased that this new Program will enable him, and others like him, to contribute skills to our economy on a permanent basis,” he said.

Canada to Encourage Irish Immigration at Jobs Expo Dublin and Jobs Expo Cork

Posted on August 26, 2013 by CICS Immigration Team

A street in Dublin, Ireland. Thousands of Irish job seekers are expected at the job expos being held in Dublin and Cork on September 6, 7 and 10 (Jean Housen)

At least seven Canadian companies will have a presence at this year’s Jobs Expo Dublin and Jobs Expo Cork, where they will promote the country as an ideal destination for Ireland’s skilled workers to find work and to settle.

The job expo, which is scheduled for Friday September 6th and Saturday 7th in Dublin, and Tuesday September 10th in Cork, will attract thousands from across Ireland seeking to assess the employment opportunities being offered. Dozens of companies from around the world will be manning booths at the event.

With Ireland now back in recession, immigration to Canada is becoming an increasingly attractive option for the country’s workers, whose skills, including English fluency and many with skilled trades qualifications, are well matched for Canada’s economy.

Among Canadian firms present at the expo will be CICS Immigration Consulting, which will be holding seminars on immigration to Canada in Dublin on Friday September 6th from 3pm – 3.45pm and in Cork on Tuesday September 10th from 5pm – 5.45pm.

Canadian immigration consultant and CICS principal Alex Khadempour will detail the main routes through which Irish workers can obtain work permits and permanent residency in Canada and provide a layout of the Canadian labour market and what immigrants might expect to encounter when they arrive in the country.

The job expo will run from 11am to 4pm in the Croke Park Conference Centre in Dublin and from 12pm to 6pm in the Silver Springs Moran Hotel in Cork.

Increase in US Oil Production Threatens Canada’s Oil Sands

Posted on February 15, 2013 by CICS Immigration Team

An oil rig in Northern British Columbia. The oil and gas industry is vital to the economy of Western Canadian provinces

Canadian energy producers exported over $120 billion worth of energy products in 2011, which constituted over 25 percent of the $462 billion worth of goods/services exported from Canada that year.

The sizeable contribution made by the oil and gas sector to Canada’s export revenue helped shore up the value of the Canadian dollar, which enhanced Canadians’ purchasing power internationally and helped raise the average household wealth of Canadians above that of Americans for the first time in history.

Canada’s natural resource wealth, in particular in energy resources, has also given it the best economic performance among the G8 countries over the last several years, and allowed it to better weather the economic decline following the bursting of the global credit bubble in 2008.

The exceptionalism of Canada among the developed world faces a threat from an unexpected source though: increasing shale oil production in the US.

As noted in the Edmonton Journal, a recent PricewaterhouseCoopers (PwC) report projects a substantial increase in global oil supplies as new oil extraction methods like hydraulic fracturing make previously inaccessible shale oil reserves accessible for the first time:

Thanks to such innovations as horizontal drilling and fracking (hydraulic fracturing), the U.S. is currently producing more oil than it has in 20 years. U.S. output now exceeds seven million barrels a day, and that has enabled the world’s biggest oil consuming nation to cut its imports to the lowest level in 16 years.

Since Canada’s crude oil exports are a critical driver of well-paid jobs, royalties, taxes — and ultimately, federal equalization transfers — that’s something that should alarm all Canadians.

Indeed, if current trends continue, the U.S. will overtake Saudi Arabia as the world’s top oil producer by 2017, the International Energy Agency has predicted.

This can threaten Canada’s energy sector due to both global and regional effects. Globally, an increase in oil production would reduce oil prices, and with it, Canada’s oil and gas revenue. Regionally, given ninety percent of Canada’s energy exports are sent to the US, an increase in American oil production would significantly reduce the premium Canadian oil producers receive thanks to the proximity of their major buyers.

The regional effects could be alleviated with the construction of more pipelines capable of transporting the oil produced in the Athabasca oil sands in Northern Alberta to the Pacific Ocean, from where it can be shipped to Asian economies, but projects being proposed at the moment, like the Enbridge pipeline, face political challenges due to ideological and cultural opposition to the oil industry among a sizeable section of the Canadian public.

Economic repercussions

If the global petroleum market progresses as the PwC report predicts, the prosperity of Canada’s Western provinces, which depends to a large part on energy production, would diminish, and federal revenues from oil and gas royalties would decline.

The rapid immigration of skilled trades people to Canada to work in the oil and gas sector would slow, and other developed countries, especially large oil importers like European countries and Japan, would become more attractive destinations for immigrants and international investors.

The net effect for the world would likely be positive, as reduced oil prices increase global economic growth and raise the average of standard of living around the world.

Immigrant Income Levels Depend on Canadian Immigration Program

Posted on January 27, 2013 by CICS Immigration Team

Data from the Statistics Canada report on the income of immigrants, released in December, shows large differences in the economic performance of immigrants depending on which immigration program they were admitted through (Moxy)

In the second part of our series on the recently released Statistics Canada report on the income of immigrants, we delve deeper into the data and look at how various economic class immigration programs compare for immigrants who arrived between 1986 and 2010. The first part can be found here.

Among the most important immigration-related issues for the federal government every year is picking the right mix of immigration programs to make up the annual quota that it sets aside for new permanent residents.

The major priorities that the federal government seeks to meet in selecting the allocation are:

meeting the humanitarian commitments it has set for itself to re-settle a certain portion of the world’s refugees
accommodating Canadians whose family members live abroad and who they would like to re-unite with through family class immigration sponsorship
admitting immigrants that will contribute to Canada’s economy and meet its investment and labour needs

To meet the last objective, the federal government currently allocates 60 percent of the permanent residence quota to economic class immigration programs, which consist of the Federal Skilled Worker Class (FSWC), the Canadian Experience Class (CEC), the business class programs, and the provincial nominee class programs.

Historically, the skilled worker program (FSWC) has contributed the largest portion of Canada’s economic class immigrants, but there have been calls to increase the proportion admitted through programs in the business and provincial nominee classes.

The provincial governments in particular have frequently called on the federal government to allow them to pick a greater share of Canada’s immigrants through their respective provincial nominee programs (PNPs), which has resulted in their quotas being increased from 2,500 in 1999, to over 30,000 in 2009.

Whether the FSWC should remain the mainstay of Canadian economic-class immigration or whether the PNPs, or perhaps business class programs, should continue to see their role expanded, is a question that the StatCan report can help answer.

The 30 year longitudinal study (we have only reproduced 24 years of it, as we assessed the data from 1980-1986 to be too limited to be useful) has a few surprising findings.

Income of immigrants by immigration program. Skilled worker class immigrants see the most wage growth over the 24 year period.

Early success for PNP immigrants, long-term success of the skilled worker class immigrants

Immigrants admitted through the FSWC earn significantly more than those admitted through the business classes, and after seven years in Canada, more than PNP class immigrants.

Average income in 2010 for skilled worker class immigrants. The graph shows rapid income gains in the first few years following immigration, followed by more gradual income growth

PNP-class immigrants earn nearly double what other immigrants earn in the first year of their permanent residence. This is most likely due to the fact that a person needs to already be in Canada and working to qualify for most provincial nominee programs, whereas immigrants who become permanent residents through the FSWC or business class programs arrive in Canada for the first time on the day they receive their permanent residency.

The data shows that the PNPs’ lead in income quickly closes, as FSWC immigrants see rapid income gains in their first few years in Canada.

Average income in 2010 for provincial nominee (PNP) class immigrants. PNP-class immigrants start out with much higher incomes than other economic-class immigrants

It should be taken into account however that the data on PNP-class immigrants that arrived in the early 2000s is quite limited, given the provincial nominee programs admitted fewer than 10,000 immigrants for most of the first of half of the 2000s, so the long term income growth statistics for the PNP class could change over-time.

Poor performance of business class immigrants

The business class immigrants, despite having met demanding minimum net worth requirements to qualify for immigration to Canada, have lower income levels than skilled worker and provincial nominee class immigrants, especially in the first few years after they arrive.

Over the long run, their income gradually converges with the skilled worker class, but this takes nearly 24 years and it never meets the level of their skilled worker counterparts.

One partial exception to this is immigrants from the Africa and Middle East region. Business class immigrants in this group see their income surpass skilled worker class-immigrants from the same region after 24 years.

Average income in 2010 for business class immigrants. Business class immigrants from the Africa and Middle East region see significant income growth over a 24 year period

Cause of business class under-performance

Ideally, business class immigrants, with their substantial capital and business experience, would be the biggest contributors to the Canadian economy among the country’s immigrant population.

One possible explanation for their lower than expected incomes is that they keep their investments abroad.

Canada, which has relatively high average personal income tax rates, is out-matched in investment opportunities by many regions in the world, like the rapidly developing Asian country of South Korea, which has average personal income tax rates and government expenditure levels that are one third lower than Canada.

While business-class immigrants could choose to remain invested abroad, skilled worker class immigrants likely benefit from working in Canada, since it is a high-income country that provides better wages than the vast majority of the world, and in any case they have few options other than working and earning their salary in Canada, since labour is not mobile like capital.

If investment opportunities in Canada being comparatively poor is in fact the cause of lower than expected income performance of business class immigrants, this is not a problem that the federal government can fix by changing immigration selection rules.

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