Canadian Immigration Hopefuls Gearing Up For Launch of Federal Skilled Worker Program

Citizenship and Immigration Canada will be accepting applications for the Federal Skilled Worker Program starting May 4th

The Federal Skilled Worker Program (FSWP), the mainstay of the Canadian government’s economic class immigration stream, last accepted applications on May 8th 2012, when the program’s 20,000 application cap for the July 1st 2011 to June 30th 2012 period was reached.

On July 1st 2012, Citizenship and Immigration Canada (CIC) announced that the program would be put on moratorium to give the immigration department time to process FSWP applications in its backlog and to design new rules and put in place new processes for a revamped skilled worker program that better meets Canada’s economic needs.

Now, after a nearly one year wait, the program is set to begin accepting applications on May 4th 2013, providing skilled foreign workers who lack the financial means to qualify for Canada’s investor and business class programs and without a job offer from a Canadian employer, with an immigration program they can potentially qualify under.

Alex Khadempour, a licensed immigration consultant for CICS Immigration Consulting Inc., says that the majority of people who have contacted his firm over the last several months have been enquiring about the FSWP.

“There just aren’t any options through existing Canadian immigration programs for the vast majority of people who are interested in immigrating. Many who contact us are pinning their hopes on the return of the Federal Skilled Worker Class,” said Mr. Khadempour in an interview with CICS News.

One of the major new requirements of the revamped skilled worker program is the Educational Credential Assessment (ECA) said Mr. Khadempour: “we recommend to every one who contacts us to get their academic documents ready so that they can get their ECA as soon as CIC designates the Credential Assessment Organizations. All Federal Skilled Worker applications will require an ECA under the new rules.”

Immigrant Income Levels Depend on Canadian Immigration Program

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.

Lawyers Representing Canadian Immigration Applicants Argue Unlawful Discrimination in Backlog Wipe-Out

Lawyers for 1,000 people affected by the Federal Skilled Worker application backlog wipe-out are optimistic about the comments made by presiding judge Justice Rennie at the hearing this week

Lawyers representing a group of 1,000 immigration hopefuls whose applications for permanent residence under the Federal Skilled Worker Program (FSWP) were closed by the federal government under Bill C-38 argued in a hearing this week that the government’s decision violated the Charter of Rights and should be struck down.

The 1,000 litigants are among those affected by Bill C-38, which wiped out the 97,715 cases (according to the Toronto Star) in the backlog of FSWP applications submitted before February 27th 2008.

The lawyers for the litigants argued that since applicants were only permitted to apply at one visa office, which was determined by their country of residence, and the government set quota for visa offices assigned to applicants in Asian and African countries was not sufficient to process the applications they received as quickly as applications sent to visa offices assigned to applicants from Western Europe and the Americas, the law discriminated against Asian and African applicants, which put it in violation of the Charter of Rights and made it unlawful.

The litigants’ lawyers pointed out that 81.4 percent of the applications that were in the backlog were from Asia and Africa.

Head attorney for the litigants in the case, Tim Leahy, expressed optimism at the comments of presiding judge, Justice Donald Rennie, to lawyers representing the government, in which he criticized as “paternalistic” toward the immigrants their argument that the application backlog wipe-out would be better for immigrants since it would allow for a just-in-time immigration rules that created shorter processing times for them.

He called on them to keep their arguments confined to why the backlog wipe-out benefits Canada.

Also criticizing the government’s argument that the application wipe-out was necessary to put in place a just-in-time immigration selection process, Justice Rennie asked why the backlog and just-in-time approach were “mutually exclusive” and couldn’t exist simultaneously.

The litigants have so far failed in their attempts to force the government to reverse the backlog wipe-out through the courts, and even if they succeed in the current case, will likely face an appeal from the government.

Canada’s Most Popular Immigration Program Will Not Have Priority List – Minister

The Federal Skilled Worker Program will not have a priority occupations list when it restarts on May 4th according to a tweet made by Citizenship and Immigration Minister Jason Kenney last August (Twitter)

A 140 character tweet from Citizenship and Immigration Minister Jason Kenney last August may have answered one of the most pressing questions about the updated rules of the Federal Skilled Worker Program (FSWP) when it relaunches in May: will it be limited to a select group of occupations?

The FSWP as it exists now is restricted to individuals qualified in one of the vocations on the priority occupations list.

The program is scheduled to begin accepting applications again in May of this year after a 10 month moratorium, and is expected to have a wide range of changes made to its selection rules.

One aspect of the program’s selection rules that was uncertain was whether a priority occupation list would exist under the revamped rules post-May 4th.

The Minister’s tweet on August 18th 2012, seen below, suggests it won’t:

Instead, applicants will be required to get an Educational Credential Assessment (ECA) from one of the designated credential assessment organizations to determine their educational credentials’ equivalent value in Canada.

New Federal Skilled Worker Program to Launch May 4 2013

Citizenship and Immigration Minister Jason Kenney announced today that the long-awaited Federal Skilled Worker Program will be launched on May 4th 2013 (Citizenship and Immigration Canada)

Citizenship and Immigration Canada announced today that the Federal Skilled Worker Program (FSWP) will re-open on May 4 2013 with the new selection rules.

CIC closed the FSWP to new applications in July 2012, saying it needed time to reduce the program back-log and re-design the point system used to select immigrants to better meet Canada’s economic needs.

The re-launched FSWP will award more points for youth and English/French language proficiency, factors CIC says its body of research shows contribute to economic success for immigrants.

FSW applicants will need to meet the Canadian Language Benchmark 7 standard for English proficiency to qualify for the program, which is the equivalent to scoring 6 on the IELTS, the most widely taken English language assessment test.

The new FSWP selection rules will also utilize an Educational Credential Assessment (ECA) process that will be introduced with the program, which will award points for foreign educational credentials based on assessments of their equivalent value in Canada.

A list of organizations designated  by Citizenship and Immigration Minister Jason Kenney to do the assessments will be released in early 2013.

“For too long, too many immigrants to Canada have experienced underemployement and unemployment, and this has been detrimental to these newcomers and to the Canadian economy,” said Kenney.

“Our transformational changes to the FSWP will help ensure that skilled newcomers are able to contribute their skills fully to the economy as soon as possible. This is good for newcomers, good for the economy, and good for all Canadians.”

CIC also said that new FSWP applications will be processed in months, instead of years, owing to the work the department has done in reducing the existent backlog and limits the program will put in place in quantity of applications it will accept.

Federal Skilled Worker Program fact-sheet

  • Maximum points awarded for a principal applicant’s proficiency in a first official language increased from 16 to 24 points, in proficiency in a second official language reduced from 8 to 4 points
  • Maximum of 12 points awarded to applicants aged 19 to 35, with decreasing points awarded until age 46
  • Maximum number of points awarded for foreign work experience reduced from 21 to 15
  • Points awarded for spousal education replaced with a maximum of 4 points awarded for spousal language proficiency
  • Maximum of 10 points awarded for Canadian work experience
  • Points awarded for foreign education credentials to be determined by an assessment of the foreign credential’s equivalent value in Canada as assessed by an organization that is designated to provide credential assessment and authentication

Federal, Provincial Governments Reach Agreement on Future Canadian Immigration System

Provincial immigration ministers met over two days in Toronto last week to discuss details of the new Expression of Interest (EOI) immigration system (Citizenship and Immigration Canada)

Canada’s federal, provincial and territorial (FPT) governments concluded two days of meetings on Friday with an agreement on the future of Canada’s immigration system which will give the provinces a central role in immigrant selection.

On the agenda for the FPT immigration ministers were the details of the upcoming Expression of Interest (EOI) model for the Federal Skilled Worker (FSW) program, which Citizenship and Immigration Canada (CIC) is planning to implement by the end of 2014.

The EOI model is an immigrant selection process which requires those seeking to immigrate to first file a simplified application, or “Expression of Interest”, 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 with includes documentation to prove their claimed qualifications.

The EOI model was first adopted by New Zealand and then more recently by Australia. CIC believes it holds the promise of eliminating the application back-logs that have plagued Canada’s immigration department over the last decade while admitting immigrants with the language, education, age and skill profiles needed to be successful in the Canadian labour market.

The FPT meeting, which was attended by all provincial and territorial immigration minister with the exception of the immigration minister of Quebec, gave unanimous approval for an EOI model for Canada in which provinces and employers select the most promising candidates from the list of EOI applicants, who are then selected to be among the limited number of applicants to be invited to submit a full application.

Co-Chairing the FPT Meeting was Alberta Minister of Enterprise and Advanced Education, Stephen Khan, who voiced the provincial ministers’ support for the plan:

“On behalf of the provinces and territories, we look forward to continuing our work with the Government of Canada to transform the immigration system, making it faster and more responsive to provincial/territorial needs.”

Canadian Prime Minister Lays Out His Vision For Immigration To Canada

Prime Minister Stephen Harper told the Globe and Mail that Canada will need to compete for high value immigrants as other country look to immigration to solve their fiscal problems

In an interview on Saturday with the Globe and Mail, Canada’s largest national newspaper, Prime Minister Stephen Harper expounded in length on his vision for Canada’s immigration programs.

He told the Globe that competition for skilled international workers would heat up over the coming years, as “the demographic changes .. the aging population, start to bite, in many developed countries”.

He trumpeted his government’s achievements in reforming what he called the old “passive pro-immigration policy” which “operated on receiving applications and processing them in order” and had left his government with “backlogs of hundreds and hundreds of thousands of applications”.

He said his government is trying to shift to an “activist policy” where Canada goes out and recruits the immigrants it needs, and when it receives applications, “prioritize them to the country’s objectives.”

The Prime Minister said that as the rest of the developed world increases its immigration intake, Canada would need the activist immigration policy to “compete, and make sure we get the immigrants both in terms of volumes and particular attributes: skills, expertise and investment capacity.”

Under the Conservative government, Citizenship and Immigration Canada (CIC) has legislatively wiped out the 280,000 application Federal Skilled Worker (FSW) program backlog, and frozen acceptance of new applications under both the FSW program and the Federal Immigrant Investor program as it re-designs the programs and reduces the backlogs.

CIC has also suspended the parent and grandparent sponsorship programs and replaced them with a ‘Super Visa’ that allows foreign parents and grandparents of Canadian citizens and landed immigrants to visit Canada for up to ten years.

Immigration Department: 1 Year Canadian Experience Class Launching Jan 2013

Citizenship and Immigration Minister Jason Kenney tweeted more details in recent days about coming changes to the Canadian Experience Class and Federal Skilled Worker programs

The length of time that a temporary foreign worker needs to have worked full-time in the Canada to qualify for permanent residence under the Canadian Experience Class (CEC) immigration program will be reduced from 24 months to 12 months in January 2013, according to a tweet by Citizenship and Immigration Minister Jason Kenney.

The long expected change in the CEC program’s work experience requirement is intended to increase the share of immigrants that come through the program, as Citizenship and Immigration Canada (CIC) considers immigrants with Canadian work experience as more likely to be successful in integrating into Canada’s labour market than those who are admitted under more traditional routes like the Federal Skilled Worker (FSW) program.

The announcement on the date of the CEC program rule change was made in a response to a tweet directed to Kenney, who is quite active on the micro-blogging site, on November 5th:

@KaushikJay The new 1 year threshold for high-skilled temporary foreign workers to qualify for CDN Experience Class will start January, 2013

In a series of tweets on November 4th, Kenney also described when and in what form the revamped FSW program will be launched.

He posted that the final details for the relaunched program would be released in the “1st half of 2013” and that there would only be “a very limited number of new applications” accepted in 2013, to help CIC “asses [sic] the new grid & educational evaluation”.

He also posted that CIC’s goal was to launch the new Expression of Interest model for the FSW program “around late 2014 / early 2015”.

CIC placed a moratorium on accepting new applications through the FSW program in July 2012, to give it time to deal with the program’s pending application backlog and to design new selection rules and assessment procedures that it says will make the program more economically beneficial for Canada and its application review process faster.

Largest Canadian Province, Ontario, Announces New Immigration Strategy

Arnon Melo, far right, is the type of immigrant Ontario wants more of. A native of Brazil, the entrepreneur founded a logistics company that now employs 10 people (Ontario Ministry of Citizenship and Immigration)

The provincial government of Ontario announced a new immigration strategy on Monday which primarily focuses on attracting more economic class immigrants, meaning those who immigrate through skilled worker and investor programs, to Ontario.

The strategy is shaped by recommendations submitted to the Ontario government by an expert roundtable last month which the government commissioned as a response to years of decreasing immigration to the province.

The final strategy adopted by the provincial government sets as its objectives to increase the province’s total immigration numbers and the proportion of economic immigrants, to boost the economic success of immigrants in order to bring their incomes and employment rates up to that of the Ontario average, and to help the province take greater advantage of the international links immigrants bring.

Some of the specific targets included in the strategy are:

  • Bringing the proportion of economic immigrants up to 70 percent from the
    current 52 percent.
  • Requesting that the federal government double the province’s Provincial Nominee Program (PNP) quota from its current 1,000, to 5,000 by 2014.
  • Encouraging employers to develop and expand mentorship, internship and on-the-job training programs.
  • Increasing the number of immigrants licensed in their field.
  • Increasing Francophone immigration to five percent.

The strategy sets out to persuade the federal government to change some of the immigration rules that the Ontario provincial government blames for contributing to the province’s underperformance, relative to other provinces, in attracting economic immigrants.

While 52 percent of immigrants to Ontario are economic immigrants, the average rate for other Canadian provinces is 70 percent, a disparity that the Ontario government attributes primarily to the low number of economic immigrants, as a percentage of the total number of economic immigrants to the province, that the federal government permits Ontario to select relative to other, less populated, provinces.

Monday’s announcement will likely put pressure on the federal Department of Citizenship and Immigration to increase the number of immigrants it allows Ontario to select through the Ontario PNP.

Canadian Immigration Department Details its Achievements, Expects Reduction in Wait Times

CIC plans to adopt an Expression of Interest (EOI) model for the Federal Skilled Worker Program similar to that in place in New Zealand.

Citizenship and Immigration Canada (CIC) summarized what it considers the successes of its reforms in recent years in a press release on Friday. CIC said that it expects that by the end of 2013, it will be able to process applications as they are received, and complete their processing within one year.

It said that this will open the door to the adoption of the Expression of Interest (EOI) model for the Federal Skilled Worker Program (FSWP) and possibly other economic immigration streams.

The EOI model requires applicants to submit a simplified preliminary application detailing their qualifications, and allowing provinces and employers to select the most promising of those applicants, who are then invited by CIC to submit a full application that includes documents proving their qualifications.

“The Government’s number one priority remains the economy and job growth. Immigration backlogs are detrimental to our ability to attract the world’s top talent,” said Citizenship and Immigration Minister Jason Kenney in describing the purpose of moving to a “just in time” EOI system of immigration admittance.

“With the decisive actions we’ve taken to tackle the backlog, we will finally be able to select immigrants who better meet the needs of the Canadian labour market. We will aim to process their applications in less than 12 months.”

CIC also detailed the measures it has taken in recent years to address a problem that has long afflicted the FSWP: the large volume of applications that exceed the program’s annual quota and lead to wait times as high as eight years:

  • In 2008, only accepting FSW applications from individuals qualified in an occupation on the “priority occupations” list.
  • In 2010, adding a quota to the number of new applications accepted.
  • In June 2012, eliminating most of the FSW applications on the backlog that were received before February 27, 2008.
  • In July 2012, temporarily pausing acceptance of new FSW applications, except for applicants with a qualifying job offer and those applying under the PhD stream.

These measures, said CIC, have reduced the FSWP backlog from 640,000 people in 2008 to 100,000 today.

CIC plans to re-start the FSWP in 2013, and admit 55,300 people over the year, approximately the same as the 55,000–57,000 quota for the program in 2012. It said that new rules for a revamped FSWP will be published later this year.