* Recruiting Immigrant Workers: Recruiting Immigrant Workers: Canada 2019: Recruiting Immigrant Workers: Canada 2019 Back to iLibrary publication page Key concepts -- -- work permit labour migration foreign workers employers international students -- -- international students labour market test workers occupations -- occupations migrants labour market -- labour market immigrants caregivers -- caregivers temporary workers Canadians Countries covered -- -- This chapter describes and analyses the two streams via which temporary labour migrants come to Canada: the Temporary Foreign Worker (TFW) Program and the International Mobility Program (IMP). It also looks at -- Program and the International Mobility Program (IMP). It also looks at a specific sub-group of temporary immigrants — international students — who since 2014 enjoy extended working rights. The chapter outlines how the labour-market-tested TFW Program, has become rather tightly managed -- -- shortages that are often concentrated in certain sectors and regions and – as the name suggests – temporary in nature. In Canada, there are not only temporary labour migrants who are admitted for such purposes, but also a wide range of temporary migrants with working rights (such as researchers) coming under multiple programmes for varying durations and purposes. -- -- While in principle, a labour market test is required for temporary labour migrants to ensure that Canadian or permanent residents are not available to fill an open position, numerous exemptions apply. In -- available to fill an open position, numerous exemptions apply. In particular, about three in four temporary migrants to Canada with working rights are admitted because their presence provides broader economic, cultural or other competitive advantages for Canada, or -- -- economic, cultural or other competitive advantages for Canada, or because Canadians/permanent residents enjoy the same benefits in their country of origin. The admissions of these migrants is not linked to labour market needs – and thereby not labour-market-tested. Of these, about two-thirds receive open work permits, and information on their -- -- permanent labour migration. This is gradually changing, and onshore transitions are increasingly common. In most low-skilled occupations however, transitions are still rare, as these migrants can essentially only pass through provincial nominations. Other programmes, such as those in the caregiving sector, have a longstanding dual intent with a -- -- requirements. Though not generally viewed as temporary labour migrants, a key group to consider in this context are international students. Their working rights during study have greatly expanded in recent years, and Canada -- -- also provides them with comparably favourable options to stay and work after graduation. International students are also a key source of future permanent labour migrants, benefitting from a selection system that values Canadian credentials and experience. -- -- that values Canadian credentials and experience. Overview of temporary labour migrant groups In 2017, according to standardised OECD data, around 214 000 temporary -- -- In 2017, according to standardised OECD data, around 214 000 temporary labour migrants entered Canada for work purposes, a number that has strongly increased in recent years (+50% 2015/2017). However, compared with peer systems in Australia and New Zealand, Canada still receives -- -- strongly increased in recent years (+50% 2015/2017). However, compared with peer systems in Australia and New Zealand, Canada still receives relatively few temporary workers for work purposes, around 1.1% of its labour force (Figure 3.1). -- labour force (Figure 3.1). Figure 3.1. Annual inflow of temporary labour migrants, 2017 Figure 3.1. Annual inflow of temporary labour migrants, 2017 Note: Data excludes renewals and temporary migration under mobility -- -- Note: Data excludes renewals and temporary migration under mobility agreements, such as posted workers (intra-EU/EFTA). Source: OECD Migration Database 2018 -- -- with the permanent migration system, initiating a two-step – temporary to permanent – migration. As mentioned in Chapter 1, following concerns of abuse of the previous temporary foreign worker programme, changes to the temporary migration system took place in 2014, establishing two distinct programmes (ESDC, 2014[1]). -- -- distinct programmes (ESDC, 2014[1]). The first is the Temporary Foreign Worker (TFW) Program, through which employers can hire foreign workers to fill labour and skill shortages where qualified Canadians or permanent residents are not available. A labour market test – a so-called Labour Market Impact Assessment (LMIA) -- -- labour market test – a so-called Labour Market Impact Assessment (LMIA) by Employment and Social Development Canada (ESDC) – verifies the genuine need for a temporary foreign worker by checking that the employer has first tried to recruit among Canadians and permanent residents. The employer applies for the authorisation to hire under the -- -- residents. The employer applies for the authorisation to hire under the TFW Program to ESDC. Once the employer has received a positive LMIA, the foreign worker can apply with the positive LMIA for a work permit to IRCC, under the TFW Program. -- -- to IRCC, under the TFW Program. This process differs if the temporary worker, under the TFW Program, intends to work in Quebec. In that case, employers must obtain approval from both ESDC and the Quebec government by submitting an application -- -- (CAQ) for temporary work in Quebec. ESDC and MIDI jointly analyse the LMIA according to respective regulatory criteria. MIDI assesses wages, working conditions and whether the employment of the foreign worker is likely to adversely affect the settlement of any labour dispute in progress or the employment of any person involved in the dispute. ESDC -- -- academic break both on and off campus based on their valid study permit if the permit states this condition, business visitors and short-term highly skilled workers and researchers, foreign representatives, foreign military members as well as some specific professions.2 ESDC is responsible for the TFW Program while Immigration, Refugees and Citizenship Canada (IRCC) administers the IMP. -- -- submit an offer of employment via the Employer Portal, nor pay the full employer compliance fee (see next section). Individuals who receive an open work permit come from a diverse group of foreign nationals who require such permits for many different reasons. As they do not need an LMIA, open work permit holders are part of the IMP, although not all -- -- individuals who are part of the IMP are eligible for an open work permit. The largest groups with such a permit are spouses of economic immigrants and international students, former international students holding a post-graduation work permit, and participants in the working holiday programme, one of three categories under the International -- -- While open work permits state solely the duration of the permit, an employer-specific permit additionally states the name of the employer and, where applicable, the location. A temporary foreign worker who holds such a permit can only work for the employer, length of time and, where applicable, the place specified on the permit. Individuals -- -- working under the TFW Program generally hold employer-specific work permits. Hence, they need to obtain a new work permit if they wish to change employer. Workers under the Seasonal Agricultural Workers Program (SAWP) – one sub-stream of the Primary Agriculture stream – are -- Program (SAWP) – one sub-stream of the Primary Agriculture stream – are an exception to the rule. Although these workers are part of the TFW Program, they do not need a new work permit to change employers, as -- Program, they do not need a new work permit to change employers, as long as the new employer has a valid LMIA to hire the foreign worker under the SAWP.4 Figure 3.2 provides an overview of temporary labour migration. -- -- work permits. Numbers tripled from around 110 000 permits in 1998 to close to 340 000 in 2018 – a number equivalent to about 1% of the Canadian population.5 In particular, the number of temporary migrants under the IMP reached unprecedented levels. They accounted for -- under the IMP reached unprecedented levels. They accounted for three-quarters of work permits issued to temporary labour migrants in 2018 (Figure 3.3). When considering only initial work permits for work purposes in 2018, over 82% were issued under the IMP and only 18% under -- -- purposes in 2018, over 82% were issued under the IMP and only 18% under the TFW Program, as most permits under the latter are renewals – especially for returning agricultural workers. Figure 3.3. Work permit holders by year in which permit(s) became effective and programme (%), 1998-2018 -- -- programme (TFW Program/IMP) though, importantly, for a fifth of IMP work permits issued, the intended location (province/territory) of work is not recorded. Relative to the population however, foreign work permit holders are often found in Prince Edward Island, British Columbia and Yukon, where they account for more than 1% of the -- -- study permits6, a close to three-fold increase over ten years. However, the total number of study permits cannot simply be added to those temporary labour migrant with work permits, and this for several reasons. First, there are possible overlaps,7 second, not all study permit holders benefit from these provisions8 and, thirdly, not all -- -- provided by their permit. In the following paragraphs, the three groups – temporary workers under the TFW Program, the IMP and international students – are each discussed in more detail. -- -- discussed in more detail. Temporary Foreign Worker (TFW) Program Recent reforms to the labour-market-tested programme reduced the number of -- -- programme, thereby rendering it a last and limited resort to fill acute labour shortages and to address integrity issues, as well as concerns about the treatment of some temporary foreign workers (Nakache and Kinoshita, 2010[2]; HUMA, 2016[3]; CIC, 2012[4]). -- -- needs and labour market impact. The current Labour Market Impact Assessment (LMIA) requires employers to provide extensive information, such as the number of Canadians and permanent resident workers who applied and interviewed for a position, and reasons why interviewed candidates were not hired. A fee of CAD 275 for the LMIA was introduced -- -- job offer, such as job responsibilities, location, working hours, pay and benefits. As part of the LMIA, labour market impacts of the employment of the foreign temporary worker are also assessed. For “low-wage” positions, a cap applies to limit the number of low-wage TFWs hired by the same employer at a particular location to a maximum -- -- TFWs hired by the same employer at a particular location to a maximum of 10% of the total staff or 20% for employers who employed temporary foreign workers in the six weeks prior to June 20, 2014, though there are some exemptions.10 In addition, employers cannot hire TFWs in certain low wage occupations11 requiring little or no education, in the -- -- 2017 to further ensure that Canadian citizens and permanent residents are considered first and foremost for available jobs. Employers seeking to hire temporary foreign workers in “low-wage” occupations (with some exceptions) must now demonstrate that they have made efforts to recruit from two or more underrepresented groups that face barriers to -- -- recruit from a single underrepresented group. Temporary foreign workers under the TFW Program today can be grouped into the “high-wage” positions Stream, the “low-wage” positions Stream, the Global Talent Stream and the Primary Agriculture Stream -- -- the Global Talent Stream and the Primary Agriculture Stream (Figure 3.2). The Primary Agriculture stream is currently divided into four sub-streams: The Seasonal Agricultural Worker Program (SAWP), the Agricultural sub-stream, the High-Wage sub-stream, and the Low-Wage sub-stream. The primary agriculture stream’s High- and Low-Wage -- -- sub-streams are not to be confused with the “high-” and “low-wage” under the broader TFW Program. The seasonal SAWP, where the temporary foreign worker is a national of Mexico or participating Caribbean countries, is by far the largest programme accounting for about three-quarters of permits issued over the last decade. However, in -- -- countries, is by far the largest programme accounting for about three-quarters of permits issued over the last decade. However, in 2018, initial permits – those not issued to returning workers – under the other streams accounted for around two-thirds of permits issued. This suggests that while the absolute new intake of the SAWP increased -- -- driven by a larger intake under these other seasonal and non-seasonal programmes (Figure 3.5). Figure 3.5. Streams of agricultural workers under the TFW Program Figure 3.5. Streams of agricultural workers under the TFW Program Note: The primary agriculture stream’s High- and Low-wage Streams are -- -- Since the termination of the Live-in Caregiver Program (LCP) in 2014, newly arriving immigrants working in caregiving occupations are part of the regular “high-” or “low-wage” streams. Overall, with the 2014 restructuring of the TFW Program, the number of work permits -- -- Work permits can be valid for differing durations. Participants under the SAWP – about two-thirds of all agricultural workers in 2018 – have to leave Canada by the 15^th of December each year and can only return the following year. The duration of a work permit for “low-wage” -- -- to leave Canada by the 15^th of December each year and can only return the following year. The duration of a work permit for “low-wage” workers outside of caregiving occupations12 has been set at a maximum of one year. This makes – where applicable – an annual renewal -- of one year. This makes – where applicable – an annual renewal necessary. For “high-wage” workers, the duration is a maximum of two years. At the same time, since December 2016, temporary foreign workers can remain and work in Canada as long as they have a valid visa/work permit.13 -- -- Note: Numbers show individual work permit holders by programme with a permit signed in the given year. The Live-in Caregiver Program (LCP) ended in 2014 and foreign caregivers under the 2014 caregiver pilots take part in the regular LMIA tested programmes. Data excludes a small number of other TFW Program holders. -- -- As mentioned, for “high-wage” job offers, employers must provide a “transition plan” in which they specify how they intend on reducing their dependence on temporary foreign workers and to transition to a Canadian workforce in the future. This plan comes in addition to fulfilling many of the same requirements for “low-wage” occupations. -- -- fulfilling many of the same requirements for “low-wage” occupations. Regarding the transition plan, employers have two options – either to help the temporary foreign worker to become a permanent resident or to reduce the need for temporary foreign workers altogether. Regarding the latter, employers need to provide proof of four distinct activities to recruit, train or retain Canadians/permanent residents. Such activities -- -- training, providing paid leave for education, engaging with headhunting firms, partnering with unions, providing part-time or flexible working solutions, and providing financial support to relocate workers. One of these activities has to engage an organisation serving groups that face barriers in the labour market. Alternatively, employers can commit in -- -- these activities has to engage an organisation serving groups that face barriers in the labour market. Alternatively, employers can commit in their transition plan to supporting the temporary worker into becoming a permanent resident. This can for example entail to offer language training to support a permanent residence application. If employers are -- -- It is not clear why this cumbersome process of a transition plan is in place for “high-wage” jobs. Most OECD countries favour rather than discourage recruitment of high skilled temporary migrants. In addition, the bulk of temporary high-skilled employees come via the LMIA-exempt IMP which is discussed below. Under this programme, no labour market -- -- IMP which is discussed below. Under this programme, no labour market test is required. Imposing a transition plan including a CAD 1 000 fee for this group of temporary workers clearly incentivises employers to find ways to switch to the non-labour market tested IMP. Changes in volumes of the IMP in recent years suggest that this might indeed be -- -- employers and occupations… Certain temporary labour migrants who require an LMIA benefit from fast-track processing (ten business days).15 If applicable, their subsequent visa and work permit application can also benefit from -- -- to Canada by providing work permit exemptions for high-skilled short term work, and a dedicated service channel for employers. The goal is to provide faster and assured access to highly-skilled foreign workers to fill job vacancies while ensuring that Canadians and permanent residents have the first opportunity to apply for available jobs. Under -- -- to fill job vacancies while ensuring that Canadians and permanent residents have the first opportunity to apply for available jobs. Under the strategy, two types of workers do not need work permits. The first group are individuals working in highly-skilled (NOC16 0 and A) occupations for up to15 days in six months or 30 days in a given year. -- -- 12 months. LMIA-exempt workers qualify for two-week processing of their employer specific work permit application if they are applying from outside Canada, if their employment offer is either a managerial or -- -- eight weeks processing time. LMIA-required workers qualify for two-week processing of their work permit application if they are applying from outside Canada, and have received a positive LMIA through the GTS. The GTS was launched as a -- -- two-year pilot in June 2017, as part of the GSS, and made permanent in Budget 2019. It facilitates two-week LMIA processing for companies seeking unique talent, or seeking to hire foreign nationals in occupations for which there is a shortage of domestic labour. The stream is available for two types of Canadian employers: -- -- requires unique and specialised talent in order for the firm to scale-up and grow (Category A); and * Companies seeking to hire highly-skilled foreign workers for occupations found on ESDC’s GT Occupations List because they have been determined to be in demand and for which there is insufficient -- -- requested to amend or expand existing commitments to make the benefits commensurate with their usage of the Stream. The GTS requires employers to pay and at least annually adjust the wage to temporary foreign workers ensuring equivalent wages to Canadian/permanent resident employees hired for the same job and work location, and with similar skills and years of experience. Under both categories, additional -- -- salary thresholds apply. These LMIAs and the subsequent work permit applications benefit from priority processing17. Spouses and partners of skilled workers arriving in Canada under this Strategy can get expedited work permits to further their own careers, ensuring that all family members are welcomed together. -- -- employer-specific. The TFW Program by design is employer-specific. It is built around a labour market test that requires employers – among other things – to demonstrate a labour shortage. If a temporary foreign worker wants to change jobs or employers, they must apply to change the conditions of their work permit, which in the cases of most TFW Program streams includes a new job offer letter, employment contract and a new -- -- LMIA. The fact that foreign workers are bound to their employers appears to be motivated at least in part by relatively high costs of recruitment faced by the latter. At the same time, the employer-specific work -- -- be motivated at least in part by relatively high costs of recruitment faced by the latter. At the same time, the employer-specific work permit limits bargaining power of the temporary foreign worker, making them dependent on the compliance of their employer. If an employer is found non-compliant and banned, an employee risks losing their -- -- Other OECD countries have introduced provisions to limit the risks for temporary labour migrants in the case of non-compliant employers. In New Zealand, for instance, temporary foreign workers can continue to work for a non-compliant employer for as long as their visa remains -- work for a non-compliant employer for as long as their visa remains valid but cannot renew their visa. In Korea, temporary workers (under the E-9 programme) are allowed three voluntary changes of employers over the course of their employment period (within the same sector and -- -- specific employers. As employer-specific work permits limit mobility of the migrant worker concerned, Canada announced in May 2019 a new policy for vulnerable -- concerned, Canada announced in May 2019 a new policy for vulnerable migrant workers who are at risk of abuse in the workplace. These temporary foreign workers can apply for a specific “open work permit for vulnerable workers” which is LMIA-exempt and entails the possibility to obtain authorisation to work for another employer.19 -- -- fee… An employer can apply for several temporary foreign worker positions using one LMIA application form but has to pay the CAD 1 000 fee for -- using one LMIA application form but has to pay the CAD 1 000 fee for each worker.20 The LMIA is valid for six months and within this period the temporary foreign worker has to apply for their work permit to IRCC. Renewals of work permits under the TFW Program involve a repetition of the LMIA-process, including the mandatory payment of the -- -- IRCC. Renewals of work permits under the TFW Program involve a repetition of the LMIA-process, including the mandatory payment of the CAD 1 000 fee for each applied position for a temporary foreign worker. This fee is non-refundable in cases of a negative LMIA or a subsequent negative work permit decision. The fact that for both “high-” and -- -- As part of the overhaul of the TFW Program in 2014, the number of inspections was increased, aiming to inspect one in four employers using temporary foreign workers annually. Inspections may occur after a positive LMIA has been issued and the foreign worker has received a work permit and begun working. Inspections may be conducted during a period of six years and throughout this period employers are required -- -- period of six years and throughout this period employers are required to hold records – instead of two years previously. Inspectors have the power to conduct site visits without a warrant, interview workers (contingent on their consent) and review all 21 requirements when inspecting, compared to a previous three. -- -- programmes. Source: Employment and Social Development Canada (ESDC)’s Foreign Worker System (FWS) and/or the National Integrity Investigation System (NIIS) and/or the Integrity Case Management System (ICMS). -- -- Possible sanctions for non-compliance include administrative monetary penalties and/or temporary bans from hiring temporary workers. Perhaps even more importantly, names and addresses of employers found non-compliant are made public on an internet list with details of the -- -- Canada has a long tradition of temporary migration in caregiving occupations and has established explicit links with its permanent migration stream for immigrant workers in this sector. As a result, about one in three long-time care workers in Canada is foreign-born, a larger share than in most OECD countries (Figure 3.7). -- larger share than in most OECD countries (Figure 3.7). Figure 3.7. Over a third of long-time care workers in Canada are foreign-born Percentage share of foreign-born among the LTC workforce in 2015 (or nearest year) -- nearest year) Figure 3.7. Over a third of long-time care workers in Canada are foreign-born Note: OECD and EU are the unweighted averages of the 19 and -- -- The Live-in Caregiver Program (LCP) established in 199223 was closed to new applications in 2014. For over two decades, it allowed temporary labour immigrants working in the caregiving sector to apply for permanent residency as economic class immigrants within three (and after 2010 four) years of arrival in Canada, once they had completed at least two years of full-time caregiving work. These employees usually -- -- People with High Medical Needs classes. In June 2019, these pilot programmes were replaced by the Home Child Care Provider Pilot and Home Support Worker Pilot. While the 2014 pilots are now closed24 and have been replaced by new pilot programmes with new rules and criteria, Canada’s experience with these pilots is nevertheless insightful. -- -- for 24 months in an eligible occupation. The assessment of skills and selection was then done upon application for permanent residence. Hence, foreign national caregivers first entered Canada as any other temporary foreign worker coming under the TFW Program. Depending on the wage offered, they were part of either the “high-” or the “low-wage” stream and a positive LMIA was required to obtain their -- -- ability to economically establish as permanent residents (e.g. official language, education) at the temporary stage. Interested temporary foreign worker caregivers could only apply for permanent residence after they obtained the relevant work experience and met all applicable permanent residence requirements. Compared with the former LCP, the -- -- live-in requirement was removed, and the programme criteria were modified to more closely align with the approach of selecting economic immigrants on the basis of their ability to become economically established in Canada. -- -- through Ministerial Instructions). However, and in contrast to their predecessor, the 2014 caregiver pilots were under-subscribed. In 2017, Canada admitted only 1 875 economic immigrants as caregivers under the new programmes (principal applicants and their dependants), compared with combined cap of 5 500 principal applicants alone (IRCC, 2018[8]). -- -- have specific programmes to attract individuals in caregiving occupations. Such alternative channels have the advantage for the migrant that they are permanent from the start, and thereby allow not only for full occupational mobility after admission but also for migrating as a family. Between 2016-18, about 2 700 higher-skilled -- -- transitioning from temporary to permanent residence. Indeed, this is one of the changes in the new 2019 pilot programmes – the Home Child Care Provider Class and Home Support Worker Class. Applicants will be assessed for permanent residence criteria before they begin working in Canada, providing a clearer and more assured pathway to permanent -- -- occupations at a lower-skill level (NOC 4411 and 4412, excluding housekeepers). The educational requirement of one-year of Canadian post-secondary education (or the foreign equivalent) introduced in the 2014 pilots is maintained, and the language requirement has been set at CLB 5 for both occupations. The 24 months of full time work experience -- -- increase the programmes flexibility Overall labour market outcomes of labour immigrants under the caregiving programmes and those of their spouses and dependants are favourable. Data from the IMDB – notably based on previous cohorts, -- -- the ten years after. What is more, following the year of landing, over 95% of LCP’s spouses and dependants are working, in contrast to only about 60% among the spouses of federal skilled workers. While the income of caregivers remains below the levels of most other (permanent) -- income of caregivers remains below the levels of most other (permanent) labour migrants the income gap to their spouses and dependants is much smaller than for any other group of economic immigrants. What is more, the earnings of spouses and dependents of caregivers are well above the -- the earnings of spouses and dependents of caregivers are well above the earnings of spouses and dependants accompanying other labour migrants (Figure 3.9). Figure 3.9. Median earnings by years since landing, Live-in Caregivers -- -- (Figure 3.9). Figure 3.9. Median earnings by years since landing, Live-in Caregivers and economic labour migrants and their spouses and dependants, landing cohort of 2006 Figure 3.9. Median earnings by years since landing, Live-in Caregivers -- -- cohort of 2006 Figure 3.9. Median earnings by years since landing, Live-in Caregivers and economic labour migrants and their spouses and dependants, landing cohort of 2006 -- -- female spouses and dependants. Still, male spouses and dependants of caregivers have median earnings exceeding those of male spouses and dependants of federal skilled workers/federal skilled trades. However, the opposite holds for female spouses and dependants of caregivers. -- -- the Agri-Food Immigration Pilot, which aims to fill structural labour shortages particularly in meat processing and mushroom production. The programme aims to attract and retain workers experienced in these occupations by providing them with permanent residence. -- -- occupations by providing them with permanent residence. Temporary foreign workers who meet the criteria will be able to apply under the new pilot starting in 2020. Applicants require 12 months of full-time, non-seasonal Canadian work experience in the TFW Program, in -- -- Initial work permits issued to individuals per year under the IMP more than doubled over the last decade (Figure 3.10). The growth has been largely driven by few groups of temporary workers. This includes in particular three groups, post-graduation work permits (PGWP) holders, individuals with permits under the International Experience Canada -- -- particular three groups, post-graduation work permits (PGWP) holders, individuals with permits under the International Experience Canada (IEC) programmes, and permits for spouses of skilled workers and international students.26 The number of work permits under the category Agreements increased until 2013 and since then declined to its level -- -- to IRCC relating to their offers of employment via an online platform called Employer Portal and to pay an employer compliance fee of CAD 230 per work permit. In addition, the foreign worker has to pay a CAD 155 work permit fee. In the case of open work permits under the IMP, for example the working holiday programme of the IEC, which are -- -- Youth participating in temporary working programmes Like many OECD countries, Canada runs federal programmes for foreign national young adults to work and travel temporarily in the country. -- national young adults to work and travel temporarily in the country. The International Experience Canada (IEC) programme admits foreign nationals of selected countries on the basis of bilateral agreements, – for up to 24 months27. To be eligible, applicants need to -- -- The second category within IEC is the International Co-Op programme, which enables foreign youth enrolled at a post-secondary institution to gain work experience in Canada related to their field of study, usually in the form of an internship. The third category is the Young -- -- distinction is that in both countries, the programmes are a key feeder for transition to permanent residency. This is less the case in Canada were administrative data indicates that 7% of IEC foreign youth who came to Canada under the IEC Programme (combining the outlined three sub-programmes of which the working holiday is one) between 2013-17 -- -- further distinction is that in contrast to the Canadian set-up, the Australian programme includes an extension possibility which in some circumstances allows for a third year for young workers who commit to stay in regional areas during their second year. -- -- Source: Data compiled from ECIU Master Tracker provided from ESDC. Programme inspections aim to protect temporary foreign workers and ensure that employers use the IMP properly. On behalf of IRCC, Service Canada inspects employers against the conditions listed on the work -- -- well as co-operate with Service Canada by showing up for inspections and providing all required documentation. Employers must keep any documents they have about the employment of their temporary worker for six years from the date Service Canada issued their work permit. -- -- non-compliance and are decided by a points system. This looks, among other aspects, at the number of violations, the compliance history, the number of workers negatively affected by the violation, and for monetary penalties also at the size of the business. Possible sanctions for non-compliance include warning letters, monetary penalties from -- -- for non-compliance include warning letters, monetary penalties from CAD 500 to CAD 100 000 per violation up to a maximum of CAD 1 million over one year. It can also include a ban from hiring temporary workers through the programme for one or several years and for serious violations a permanent ban from hiring. In addition pending work permit -- -- online list. This list states the reason for their non-compliance, the amount of monetary penalty – if applicable – and if they remain eligible for hiring temporary foreign workers under the programme in the future. -- -- While international students do not necessarily constitute labour migrants per se, many countries offer them work permits to help them defray the costs of their education and to get a first foothold into the labour market. Countries are also increasingly providing -- -- in the last four years intended to stay in a central metropolitan area – an area with a total population of at least 100 000 – a share almost identical than among the 2011-16 cohorts of labour immigrants (91%). Almost one in three international students are in a subject in the -- -- countries (Switzerland, Germany, Norway, Finland and France). While this still places Canada in the top quarter of countries, this is a lower position than for temporary labour migrants with master’s degrees or higher, discussed below (Tuccio, 2019[15]). One of the reasons for Canada’s lower ranking are the country’s relatively high study fees for -- -- country especially for housing. Figure 3.14. Annual average tuition fees charged by public tertiary educational institutions to foreign students in USD, 2015/16 Figure 3.14. Annual average tuition fees charged by public tertiary -- Figure 3.14. Annual average tuition fees charged by public tertiary educational institutions to foreign students in USD, 2015/16 Note: For New Zealand, estimates include universities only and exclude -- -- diplomas. Year of reference for Korea 2016; United States 2011/12; Australia, Austria, Switzerland 2014/15; Israel 2013/14. Tuition fees for foreign students in Denmark and Sweden refer to students from outside the European Economic Area or the European Union. -- -- Attracting Talent Canada is an attractive destination for highly educated workers from abroad For the high-skilled sought-after talent the job market is increasingly -- -- For the high-skilled sought-after talent the job market is increasingly global and Canada is an attractive destination for labour migrants from around the world. A recent OECD study on indicators of talent attractiveness places Canada in fifth position – after Australia, -- -- attractiveness places Canada in fifth position – after Australia, Sweden, Switzerland and New Zealand – among OECD countries for its overall attractiveness to workers with masters/doctoral degrees (Figure 3.15). This index considers a prospective migrant with a valid and skill-adequate job offer from the destination country. In the case of Canada, the index assesses the attractiveness of the “high-wage” -- -- of Canada, the index assesses the attractiveness of the “high-wage” stream under the TFW Program. Figure 3.15. Attracting Talent indicators for workers with master/doctoral degree, 2019 -- master/doctoral degree, 2019 Figure 3.15. Attracting Talent indicators for workers with master/doctoral degree, 2019 -- -- as non-pecuniary factors (such as possibility for family migration) and amenities. With regard to seven broad factors considered as key influences on migrants’ decision-making where to move to, Canada ranks within the top quarter when considering migrants’ future prospects, inclusiveness and the quality of life. It also ranks high for the -- inclusiveness and the quality of life. It also ranks high for the quality of opportunities, migrants’ income, and its skills environment. The only factor where Canada takes a position below average is “family environment”.32 -- -- permit levels 2009-18 Note: Data excludes permits to Agricultural workers and Live-In Caregivers. -- -- associated with lower intakes, and vice versa (Figure 3.16). Across Canada, the number of labour market-tested temporary foreign worker permits issued outside of agricultural and live-in Caregiver programmes corresponds to just 0.14% of the labour force on average between 2015-18. This share varies from 0.6% in Prince Edward Island to -- -- The evolution in regional unemployment rates in recent years shows a negative correlation between unemployment and the number in labour market tested temporary worker permits relative to the labour force in the following year. In other words, unemployment in a region correlates with a decline in TFW Program permits issued the following year. The -- -- observed at the national level and the conclusions that can be drawn from this correlation are limited. The overall share of LMIA-tested permits outside of agriculture and foreign caregivers is small in relation to the labour force, and also in relation to the non-labour market tested permits under the IMP. The relatively recent introduction -- -- of the changes and missing data on the location of a subset of these permits provides additional limitations. Finally, the occupations temporary workers are targeted for might constitute a specific sub-set of occupations by region and thus relate differently to overall provincial unemployment rates. -- -- Analysis of the labour market impact is even more difficult with respect to the IMP, which accounts for the majority of temporary workers. Key to assessing the labour market impact of temporary workers is information on their occupational profiles. However, intended occupation is only registered for occupation- and/or employer-specific -- -- permits and largely missing on open work permits where providing such information became optional in 2012. Hence in 2018, only about 31% of work permits issued to temporary migrants admitted under the IMP contained information on the intended province and occupation. For close to a quarter of IMP permits, the intended province/territory was -- -- With the limited information on the regional and occupational intentions of these temporary migrants, assessing their labour market impact is challenging and, given the importance of this group and their likely concentration in certain areas and occupations, calls for a -- -- Historically, Canada – like the other settlement countries (Australia, New Zealand and the United States) have drawn a firm distinction between temporary and permanent migrants, with most immigrants arriving in the past receiving permanent residence on arrival and rather few -- in the past receiving permanent residence on arrival and rather few migrants transitioning onshore from temporary to permanent status. By contrast, in European OECD countries as well as in Japan and Korea, -- contrast, in European OECD countries as well as in Japan and Korea, migrants receive the right to permanent residence typically after completing a number of years in the country on temporary visas, with transition being in many cases the standard and expected procedure. -- -- In Canada, transition has become gradually wider-spread since the early 1980s. The Foreign Domestic Movement Program (the predecessor of the Live-in Caregiver Program) in 1981 established, for the first time, a -- Live-in Caregiver Program) in 1981 established, for the first time, a built-in pathway to permanent residence for temporary workers. Onshore transition accelerated during the second half of the 1990s, when the start of the PNP allowed provinces and territories to nominate -- -- all PNP admissions in 2016 compared with 41% in the FSW). Furthermore, the introduction of the Canadian Experience Class (CEC) in 2008 provided a general pathway to permanent residence for migrants with at least one year of skilled work experience. -- -- least one year of skilled work experience. From 1990 to 2006, only around 23% of all migrants landing as permanent economic immigrants had prior Canadian experience (Hou and Bonikowska, 2016[19]). These figures have increased since and in 2017, almost 60% of principal applicants in the economic category admitted that year had -- -- of principal applicants in the economic category admitted that year had a previous permit under the TFW Program or the IMP.36 Linked data on newly-admitted permanent labour migrants show that the majority had only a prior work permit, and direct transitions of graduates – i.e. without additional work experience – are rare (Figure 3.18). -- -- only a prior work permit, and direct transitions of graduates – i.e. without additional work experience – are rare (Figure 3.18). Figure 3.18. Admissions of permanent labour migrants (principal applicants in economic classes) by previous permits, 2006-16 Total numbers by type of previous permit (left) and share among all -- -- applicants in economic classes) by previous permits, 2006-16 Total numbers by type of previous permit (left) and share among all labour immigrants in data (right) Figure 3.18. Admissions of permanent labour migrants (principal applicants in economic classes) by previous permits, 2006-16 -- -- Note: Total numbers include principal applicants in the economic classes. Data includes only those immigrants filing income tax in their year of landing. -- -- Various pathways to onshore transition exist Figure 3.19. Transition paths for temporary workers to permanent residence through economic programmes -- residence through economic programmes Figure 3.19. Transition paths for temporary workers to permanent residence through economic programmes -- -- through the post-graduate route. Transitions from the IMP mainly occurred to the PNP (44%), followed by FSW (34%) and Canadian Experience (20%). Among workers under the TFW Program, Canadian Experience (40%) was the main pathway, followed by FSW (26%). Interestingly, provincial nominations were much less common among the -- -- Experience (40%) was the main pathway, followed by FSW (26%). Interestingly, provincial nominations were much less common among the temporary foreign worker transitions – they accounted for less than 16% of the total. -- -- from student status to permanent residency without prior skilled work experience – at least one year within the last ten years for the Federal Skilled Workers and one year of Canadian Experience within the last three years for the CEC – under Express Entry are not possible. However, some provinces have specific streams for international -- -- five-fold since 2014. Between 2016-18 this number increased slightly stronger than the number of initial study permits over the same period (53% versus 46%). Overall, 12% of permanent immigrants in economic classes in 2018 – almost 23 000 individuals – previously held a PGWP, up from just 5% in 2015 (IRCC, 2019[21]). An estimation of student stay -- -- All Settlement countries accept large numbers of permanent labour migrants through two-step migration pathways. Such onshore transitions quickly became the norm for skilled migrants in New Zealand, where onshore proportion of skilled principal applicants reached over 80% in the 2000s. A similar but less pronounced trend occurred in Australia, -- -- immigration is through family streams labour migration accounts for only about 5% of permanent residents permits. Among these labour immigrants, in many years close to and over 90% were onshore transitions a share that remained broadly unchanged over the last decade. -- -- and Statistics Canada. Immigrants with Canadian pre-admission experience have higher earnings than their peers selected from abroad -- -- Figure 3.23 presents the median annual income of principal labour migrants by pre-admission permits in Canada, for the cohort admitted in 2008 by years since landing. Trajectories for other admission years are very similar. -- -- cohort of 2008 Source: Statistics Canada. Table 43-10-0010-01 Immigrant Income by admission year and immigrant admission category. Two observations stand out. The first key observation is that, for the -- -- Two observations stand out. The first key observation is that, for the first four to five years after landing, labour immigrants with previous work permits outperform those without such permits. However, about -- work permits outperform those without such permits. However, about eight years after landing, labour immigrants without pre-admission experience have caught up to those with work – but no study – experience in Canada. This is consistent with earlier findings that -- -- experience have caught up to those with work – but no study – experience in Canada. This is consistent with earlier findings that immigrants with pre-immigration Canadian skilled work experience had a large earnings advantage over immigrants who were selected from abroad38 (Hou and Bonikowska, 2016[19]). The authors find that only one-quarter of the earnings advantage was attributable to the level of -- -- have a job offer can be understood as a reflection of employers’ more astute judgment in this area. Second, the prior work history could also provide for some selection, as unsuccessful temporary workers may be less likely to get enough skilled work experience for transition. Interestingly, the earnings advantage of Canadian work experience fades -- -- Interestingly, the earnings advantage of Canadian work experience fades out over time. This is not the case for Canadian education. Indeed, the second key observation from Figure 3.23 is that immigrants with Canadian education have the steepest earnings growth. However, even after ten years, they still lag somewhat behind those who also have -- -- Conclusion The changes to the temporary foreign worker programmes over the past five years have established two broad pathways for temporary labour migration. While one is labour-market-tested and rather tightly -- -- [4] CIC (2012), Evaluation of the Labour Market Opinion Streams of the Temporary Foreign Worker Program, http://publications.gc.ca/collections/collection_2013/rhdcc-hrsdc/HS28- 207-2012-eng.pdf (accessed on 22 February 2019). -- -- [5] ESDC (2019), What we heard: Primary agriculture review, http://www.canada.ca/en/employment-social-development/services/foreign- workers/reports/primary-agriculture.html. -- [1] ESDC (2014), Overhauling the temporary foreign worker program, https://www.canada.ca/content/dam/canada/employment-social-development/ -- https://www.canada.ca/content/dam/canada/employment-social-development/ migration/documents/assets/portfolio/docs/en/foreign_workers/employers/ overhauling_TFW.pdf (accessed on 25 September 2018). -- -- [20] Hawthorne, L. (2010), “How Valuable is “Two-Step Migration”? Labor Market Outcomes for International Student Migrants to Australia”, Asian and Pacific Migration Journal, Vol. 19/1, pp. 5-36, http://dx.doi.org/10.1177/011719681001900102. -- -- [19] Hou, F. and A. Bonikowska (2016), “Selections Before the Selection: Earnings Advantages of Immigrants Who Were Former Skilled Temporary Foreign Workers in Canada”, International Migration Review, p. imre.12310, http://dx.doi.org/10.1111/imre.12310. -- -- [3] HUMA (2016), Report of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities: TEMPORARY FOREIGN WORKER PROGRAM, http://www.parl.gc.ca. [17] Infometrics (2016), The Economic Impact of International Education -- -- (SOPEMI): Canada’s immigration policies, programs and trends. [9] Kelly, P. et al. (2011), “Profile of Live-In Caregiver Immigrants to Canada, 1993-2009”, Toronto Immigrant Employment Data Initiative (TIEDI) 18. -- -- (TIEDI) 18. [2] Nakache, D. and P. Kinoshita (2010), The Canadian Temporary Foreign Worker Program: Do Short-Term Economic Needs Prevail over Human Rights Concerns?, l’Institut de recherche en politiques publiques, -- Concerns?, l’Institut de recherche en politiques publiques, http://irpp.org/fr/research-studies/the-canadian-temporary-foreign-work er-program/. -- -- er-program/. [22] OECD (2019), Recruiting Immigrant Workers: Korea 2019, Recruiting Immigrant Workers, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264307872-en. -- -- Publishing, Paris, https://dx.doi.org/10.1787/eag-2018-en. [12] OECD (2014), Recruiting Immigrant Workers: New Zealand 2014, Recruiting Immigrant Workers, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264215658-en. -- -- seeking to hire TFWs in these occupations do not have to demonstrate proof of recruitment efforts in advance of applying to the TFW Program for foreign workers in the province. ← 2. Reference to these work opportunities are listed under R186 of the -- -- organisers; crew members; emergency service providers; examiners and evaluators; expert witnesses or investigators; family members of foreign representatives; foreign government officials or representatives; health care trainees; judges, referees or similar officials; military personnel; news reporters and film and media crew; -- -- by location/province. ← 4. In addition, the foreign worker, the transferring and receiving employers, as well as an agent of the foreign worker’s government must all agree to the change of employment. -- -- less in duration (e.g. carnival or fair operators) are exempted from the cap. Likewise, positions on a Labour Market Impact Assessment to be submitted to support a temporary foreign worker’s permanent residence application under Express Entry are exempted from the cap. -- -- labourers. ← 12. As of June 2019, foreign caregivers seeking work permits are subject to new rules. Ministerial Instructions were issued on June 18, 2019 to stop processing certain caregiver Labour Market Impact -- -- Assessment (LMIA)-required work permit applications for outside-of-Canada applicants intending to work in caregiving occupations under the Temporary Foreign Worker (TFW) Program. ← 13. On 13 December 2016, the four-year cumulative duration rule -- -- ← 13. On 13 December 2016, the four-year cumulative duration rule (“four-in, four-out” rule), which banned certain migrant workers from working in Canada for four years after they had spent four years working there, was abolished. This rule had been implemented in 2011. -- -- skill levels and skill types. ← 17. Other LMIA-required workers (outside of the Global Talent Stream) such as High Wage Stream can also receive two-week priority processing of the employer’s LMIA application if they are NOC 0 and A. -- -- of the employer’s LMIA application if they are NOC 0 and A. ← 18. In such a case, the foreign national is sent a notification letter stating their permit will be revoked in 90 days and their temporary resident status and work authorisation continues until the -- -- date stated in the letter. ← 19. For migrant workers to be eligible, they must be in Canada and either hold a valid employer-specific work permit or be authorised to work without a work permit under implied status as a result of ongoing -- -- ← 20. A number of exemptions to the fee exist, such as for agricultural workers and certain caregivers in private households as listed in 315.2 of the Immigration and Refugee Protection Regulations (IRPR). -- -- requirements. ← 23. The LCP replaced the Foreign Domestic Movement Program, initiated in 1981. This programme had essentially the same terms as the LCP, by -- in 1981. This programme had essentially the same terms as the LCP, by providing migrant domestic workers with access to Canadian permanent residence after they completed a twenty-four month live-in work requirement. -- -- processing. All paper applications are processed under the regular study permit application stream and are subject to the associated processing times. Foreign nationals eligible for SDS processing are still subject to all other eligibility and admissibility requirements. -- -- holders are former international students with a post-graduation work permit (PGWP), most participants of International Experience Canada (IEC) and spouses of skilled workers and international students. ← 35. TFW Program holders with permits issued between 2015 and 2018. -- -- impact was found regardless of whether the year of immigration or the year of first arrival were taken as starting point. References[1] ESDC (2014), Overhauling the temporary foreign worker program, https://www.canada.ca/content/dam/canada/employment-social-development/ -- -- program, https://www.canada.ca/content/dam/canada/employment-social-development/ migration/documents/assets/portfolio/docs/en/foreign_workers/employers/ overhauling_TFW.pdf (accessed on 25 September 2018). Open URLReferences[2] Nakache, D. and P. Kinoshita (2010), The -- -- overhauling_TFW.pdf (accessed on 25 September 2018). Open URLReferences[2] Nakache, D. and P. Kinoshita (2010), The Canadian Temporary Foreign Worker Program: Do Short-Term Economic Needs Prevail over Human Rights Concerns?, l’Institut de recherche en politiques publiques, -- -- Prevail over Human Rights Concerns?, l’Institut de recherche en politiques publiques, http://irpp.org/fr/research-studies/the-canadian-temporary-foreign-work er-program/. Open URLReferences[3] HUMA (2016), Report of the Standing Committee on -- -- Open URLReferences[3] HUMA (2016), Report of the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities: TEMPORARY FOREIGN WORKER PROGRAM, http://www.parl.gc.ca. Open URLReferences[4] CIC (2012), Evaluation of the Labour Market -- -- http://www.parl.gc.ca. Open URLReferences[4] CIC (2012), Evaluation of the Labour Market Opinion Streams of the Temporary Foreign Worker Program, http://publications.gc.ca/collections/collection_2013/rhdcc-hrsdc/HS28- 207-2012-eng.pdf (accessed on 22 February 2019). -- -- Open URLReferences[5] ESDC (2019), What we heard: Primary agriculture review, http://www.canada.ca/en/employment-social-development/services/foreign- workers/reports/primary-agriculture.html. Open URLReferences[2] Nakache, D. and P. Kinoshita (2010), The -- Open URLReferences[2] Nakache, D. and P. Kinoshita (2010), The Canadian Temporary Foreign Worker Program: Do Short-Term Economic Needs Prevail over Human Rights Concerns?, l’Institut de recherche en politiques publiques, -- -- Prevail over Human Rights Concerns?, l’Institut de recherche en politiques publiques, http://irpp.org/fr/research-studies/the-canadian-temporary-foreign-work er-program/. Open URLReferences[6] Caruso, B. (2018), The Canadian Bar Association: -- -- ef044e1285c. Open URLReferences[9] Kelly, P. et al. (2011), “Profile of Live-In Caregiver Immigrants to Canada, 1993-2009”, Toronto Immigrant Employment Data Initiative (TIEDI) 18. References[6] Caruso, B. (2018), The Canadian Bar Association: Consultation on Caregiver Pathways, -- -- http://www.canada.ca/content/dam/ircc/documents/pdf/english/evaluation/ e2-2017-iec-en.pdf. Open URLReferences[12] OECD (2014), Recruiting Immigrant Workers: New Zealand 2014, Recruiting Immigrant Workers, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264215658-en. Open DOIReferences[8] IRCC (2018), Report to OECD Expert group on -- -- http://www.internationaleducation.gov.au. Open URLReferences[19] Hou, F. and A. Bonikowska (2016), “Selections Before the Selection: Earnings Advantages of Immigrants Who Were Former Skilled Temporary Foreign Workers in Canada”, International Migration Review, p. imre.12310, http://dx.doi.org/10.1111/imre.12310. Open DOIReferences[20] Hawthorne, L. (2010), “How Valuable is -- -- Open DOIReferences[20] Hawthorne, L. (2010), “How Valuable is “Two-Step Migration”? Labor Market Outcomes for International Student Migrants to Australia”, Asian and Pacific Migration Journal, Vol. 19/1, pp. 5-36, http://dx.doi.org/10.1177/011719681001900102. Open DOIReferences[14] CBIE (2018), The Student’s Voice: National -- -- https://open.canada.ca/data/en/dataset/1b026aab-edb3-4d5d-8231-270a09ed 4e82. Open URLReferences[22] OECD (2019), Recruiting Immigrant Workers: Korea 2019, Recruiting Immigrant Workers, OECD Publishing, Paris, https://dx.doi.org/10.1787/9789264307872-en. Open DOIReferences[23] IRCC (2019), Express Entry year-end report -- -- 2018, http://www.cic.gc.ca/publications. Open URLReferences[19] Hou, F. and A. Bonikowska (2016), “Selections Before the Selection: Earnings Advantages of Immigrants Who Were Former Skilled Temporary Foreign Workers in Canada”, International Migration Review, p. imre.12310, http://dx.doi.org/10.1111/imre.12310. Open DOIReferences[19] Hou, F. and A. Bonikowska (2016), “Selections -- -- Review, p. imre.12310, http://dx.doi.org/10.1111/imre.12310. Open DOIReferences[19] Hou, F. and A. Bonikowska (2016), “Selections Before the Selection: Earnings Advantages of Immigrants Who Were Former Skilled Temporary Foreign Workers in Canada”, International Migration Review, p. imre.12310, http://dx.doi.org/10.1111/imre.12310. Open DOI