Building a Fast and Flexible Immigration System. Canada-China Human Capital Dialogue November 28, 2012
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1 Building a Fast and Flexible Immigration System Canada-China Human Capital Dialogue November 28, 2012
2 Overview of the Presentation 1. Immigration, the Government s agenda and Canada s future 2. An overview of the current economic immigration program and significant reforms to its design and delivery that are underway 3. Focus on one particular initiative: the development of an Expression of Interest (EOI) application model 1
3 Immigration and the Government of Canada s Forward Agenda Significant reform of our immigration system identified as a key priority in the Prime Minister s January 2012 Davos speech Given effect in Economic Action Plan (EAP) 2012: With its commitment to building a fast and flexible immigration system that supports Canada s economic needs A range of reforms underway to improve outcomes, speed processing and increase responsiveness to sectoral and regional labour market needs The immigration program links as well to a number of other EAP priorities including: Pursuing new and deeper international trade relationships, particularly with large, dynamic and fast-growing economies Implementing the Canada-US Action Plan on Perimeter Security and Economic Competitiveness Supporting entrepreneurs, innovators and world class research as well as tourism, business travel and international education 2
4 Immigration and Canada s Future: Population and Labour Force Growth Immigration is and will continue to be the most important source of population growth: For the year ending June 30, 2012, net migration represented two-thirds of the country's population growth As the growth rate of the domestic labour force slows, immigrants represent a rapidly increasing contribution to net labour force growth: Within five years, virtually all of Canada s net labour force growth will come from immigration New immigrants and Canadians in the labour force, Projection Canadians New Immigrants Sources: HRSDC, 2011 COPS Reference Scenario. 3
5 Immigration and Canada s Future: Focus on Skills Evidence indicates that Canada s focus should be on matching high-skilled immigrants to labour market demand: Two-thirds of all new jobs created over the next decade are expected to be in high-skilled occupations (including skilled trades) High-skilled immigrants have better labour market attachment, higher earnings, and are more resilient during economic downturns Language skills are a key determinant of labour market success and successful integration 1 st & 2 nd generation Canadians are prominent in the pool of university-educated labour force entrants, crucial for productivity in the knowledge-based economy CIC is nevertheless mindful that there are also critical low-skilled shortages in some regions and sectors 4
6 Overview of Canada s Current Immigration Program Temporary Residents: In Canada for a limited time: Visitors and business travellers International students Working holidaymakers Temporary Foreign Workers (TFWs) Intake responds to demand Bridge to permanence possible for qualified students and TFWs Permanent Residents: Foreign nationals who settle in Canada permanently and can eventually apply for citizenship Intake is managed subject to an annual levels plan tabled in Parliament Planning range of 240, ,000 admissions per year since 2007 In 2011: 248,745 New Permanent Residents Family Class (56,446 admissions) Humanitarian 22.7% The Economic Class (156,121 admissions) 62.8% (36,090 admissions) 14.5% 5
7 Economic Immigration: the Current Suite of Programs National Federal Skilled Worker Program All applicants assessed on points grid, based on criteria such as age, language and education Canadian Experience Class Open to skilled temporary foreign workers and international students here in Canada Business Immigration Investors, entrepreneurs and self-employed Temporary Foreign Worker Program Employers who cannot find a Canadian option can hire a TFW Provincial/Territorial Quebec-Selected Skilled Worker Program Quebec manages its own program for skilled workers destined to that province Provincial Nominee Program Provinces and territories nominate workers at all skill levels who meet their specific needs ,297 (admissions) 6,027 11, ,679 (new) 300,111 (total) 31,490 38,418 6
8 Significant Program Changes Underway To improve immigrant outcomes and the immigration system s responsiveness to labour market demand, a host of measures have been taken since 2006, including: Reducing and eventually eliminating backlogs in the Federal Skilled Worker (FSW) Program: With Ministerial Instructions and the FSW Fee Refund (announced in EAP 2012) Launching the Canadian Experience Class and proposals to introduce: Changes to the FSW points grid Mandatory Educational Credential Assessment A Federal Skilled Trades stream An Immigrant Entrepreneur Start-Up Visa Significantly expanding the Provincial Nominee Program Strengthening the integrity and responsiveness of the Temporary Foreign Worker and International Student Programs Measures to improve foreign credential recognition and assessment 7
9 Key Economic Immigration Programs: FSW Program Changes Underway Proposed improvements to the FSW Program: Informed by research and a program evaluation, changes to the points grid including: Adding two new minimum requirements: Language threshold 3 rd party educational credential assessment Redistributing age points to benefit younger immigrants Increasing points for Canadian work experience Strengthened integrity/simplified process for Arranged Employment Offers (AEOs) Introducing a Skilled Trades stream: To help fill labour market gaps in certain skilled trades Design that recognizes differing provincial certification processes: And places safeguards on quality Pass/fail test using four criteria: Arranged employment or PT skilled trade certification Mandatory language threshold Two years relevant work experience Education/qualification requirement Current Employer Role in the FSW Program: Candidates with Arranged Employment Offers (AEOs) fast tracked: While outcomes good, growth in AEOs slow: 1,673 in 2002; 3,477 in 2011 Ensuring integrity of offers a key concern 8
10 Improving Foreign Qualifications Recognition In addition to the changes to the immigration system, the Government of Canada continues to work on improving the Assessment and Recognition of Foreign Qualifications: The Foreign Credentials Referral Office (FCRO) Created in 2007, the FCRO provides information, path-finding and referral services to internationally-trained individuals in Canada and overseas Various guides, fact sheets, workbooks and pre-arrival information services assist prospective immigrants to prepare for integration into the Canadian labour market Pan-Canadian Framework for the Assessment and Recognition of Foreign Qualifications (FQR Framework) Announced in November 2009, the FQR Framework is a public commitment by federal, provincial and territorial governments to take action in addressing FQR barriers and is grounded in the principles of transparency, fairness, timeliness, and consistency Provincial and territorial governments are responsible for FQR improvements for regulated occupations which they have delegated to regulated bodies. Regulatory bodies and stakeholders are meeting the Framework s commitment to timely service in the first eight target occupations; another six target occupations will have similar processes in place by the end of The next set of target occupations (currently being identified) are likely to include the skilled trades 9
11 Improving Foreign Qualifications Recognition (cont d) Engaging Employers and International Qualifications Network A collaborative new website where employers, immigrant-serving organizations and regulatory bodies exchange information on innovative foreign credential assessment and recognition practices in Canada and abroad capitalizing on expertise Supporting Workforce Participation The Federal Internship for Newcomers Program (FINP) provides newcomers with the opportunity to gain Canadian work experience within the federal government and improve integration into the Canadian labour market The Federal Public Service Mentoring Pilot was recently launched linking public servants with newcomers to develop professional networks and gain insight into Canadian workplace Overseas Services - Canadian Immigrant Integration Program (CIIP) Overseas orientation program funded by the FCRO and delivered by the Association of Canadian Community Colleges (ACCC) to expedite immigrants integration into the Canadian labour market Provides Federal Skilled Workers, Provincial Nominees, their spouses and adult dependents with in-person orientation sessions in China, India, Philippines, and the UK (which offers service to British Isles, the Persian Gulf and Scandinavia) 10
12 The Employer Role in Current Immigration System Significant growth in employer use since 2000: Particularly marked in Temporary Foreign Worker and Provincial Nominee programs Current conditions of use: Applicants with a connection to the job market (such as AEOs) are prioritized: And have a higher likelihood of being accepted as Permanent Residents But process can be lengthy For TFWs and AEO in the FSW Program favourable Labour Market Opinion (LMO) required before employment offer can be made to prospective immigrants Employer registration and oversight mechanisms not considerable but are expanding: Trade-off is that they simplify processing, e.g., as with Accelerated LMO Government recognizes that the immigration system can be cumbersome and difficult to navigate, particularly for small and medium-sized enterprises 11
13 The Government s Objective To Move from a Supply-Driven System Marked by: An open-ended application regime with a legislated requirement to process all applications, on a first come, first served basis Lengthy processing times and backlogs A limited role for employers To a Fast and Flexible Demand-Driven System That: Is focused on supporting Canada s labour market needs with a defined role for employers Delivers processing in months, not years Effectively manages intake and avoid backlogs 12
14 Expression of Interest (EOI): A Capstone on Program Modernization Creating a pool of skilled workers ready to begin employment in Canada : A Budget 2012 commitment Expression of Interest (EOI) application system the means to create this pool: Inspired by New Zealand s and Australia s example EOI is an innovation that will: Improve processing times and eliminate backlogs by aligning application intake with processing capacity Make it possible to select the best candidates, not just those who happen to apply 1 st Create opportunities to increase the employer role in immigration and strengthen the immigration system s labour market responsiveness Late 2014 proposed launch date for EOI in its initial form: Federal Skilled Worker (FSW) Program to be focus of launch Other programs could be included at that time or at a later date Consultations and design work underway 13
15 Expression of Interest (EOI): the Basic Concept A two-stage process to skilled immigration involving a pre-screening of candidates: In the 1 st Stage: Candidates complete an online form with information to include, e.g. : Age, assessed language skills and education credentials, work experience, occupation, a job offer, willingness to settle in a particular region EOI form represents candidate s expression of interest in coming to Canada: Form not an application but a 1 st step in potentially being invited to apply for a skilled immigrant visa in the 2 nd stage of the process Expressions of interest are entered into a pool where they can be ranked, sorted and searched on the basis of various factors including, e.g., points scores and occupation In the 2 nd Stage: On the basis of clear, transparent rules, top candidates from the pool are invited to submit an application for an immigrant visa along with supporting documentation Only if and when their EOI is drawn from the pool are candidates invited to apply: EOIs not selected from the pool remain valid for a prescribed period before being withdrawn; candidates may submit new EOI thereafter 14
16 Why Should Employers Be Interested in EOI? More Influence: Today employers play a limited and indirect role in the immigration program: Resulting in, for instance, a fast track for AEOs and in some provinces, with PNP Why Should Employers Be Interested in EOI? With EOI, a more direct means to access skilled workers is possible Simpler Approach: Today employers navigate a thicket of rules and requirements With EOI, a single window will be possible to facilitate access to in-demand skills Faster Processing: Despite improvements, Canada still behind Australia and New Zealand in processing times With EOI, processing to take months not years More Choice: Today employers recruit and identify the skilled candidates for immigration they want With EOI s pool of pre-qualified candidates, an additional source of skills will be available 15
17 ANNEX 1 Key Economic Immigration Programs Changes Underway 16
18 Key Economic Immigration Programs: Federal Skilled Workers (FSWs) Features: Our flagship program: skilled workers selected on the basis of criteria that promote labour market success: Age, language, education, work experience Applicants assessed against a points grid: Must achieve pass mark of 67/100 Intake now better managed and backlogs reduced: With Ministerial Instructions and Action Plan for Faster Immigration, introduced in 2008 And 2012 legislation that will eliminate pre backlog FSWs by the Numbers Planned range for 2012: 55,000-57,000 FSW profile principal applicant only: 82.5% managerial and professionals; 16.3% skilled and technical 51.3% have university education; 3.1% PhDs Majority are aged Main provinces of destination: Ontario (64.5%), British Columbia (17.5%), Alberta (14.5%) Principal countries of origin: India (17.1%), Philippines (11.5%), China (10.1%) Outcomes: Three years after landing: Average income of $46,200 - $53,300 89% of FSWs employed 17
19 Key Economic Immigration Programs: Temporary Foreign Workers (TFWs) Features: Foreign nationals hired by employers on temporary permits to fill shortages Labour market opinion (LMO) required in most cases Jointly administered by CIC and HRSDC: With growing role for provinces & territories Driven by demand with priority processing and no numerical limits: 73% increase in annual TFW entries from 110,000 in 2002 to 190,000 in 2011 Challenges and the Way Forward: Aligning program with labour market demand: while ensuring all reasonable efforts made to hire Canadians before looking abroad Legislative amendments introduced to improve worker protection and program integrity Accelerated LMO to simplify processing TFWs by the Numbers TFWs admitted to Canada in 2011: 190,769 Total # of TFWs in Canada in 2011: 300,111 Employment profile (skill level): Management, professionals, skilled and technical Intermediate and clerical Elemental and labours Main provinces of destination: Ontario, British Columbia, Quebec, Alberta Principal countries of origin: US, Mexico, France, Australia, Philippines Onward trajectory: 32,827 TFWs transitioned to Permanent Residence in
20 Key Economic Immigration Programs: Provincial Nominees (PNs) Features: Now Canada s 2 nd largest source of economic immigration: From 5,000 admissions in 2005 to a projected 42,000-45,000 in 2012 Immigrants nominated by provincial and territorial governments based on: Regional needs, inc. those of employers; and Individual s ability to economically establish Government of Canada makes final selection decision and completes processing of applications: On a priority basis, subject to health, safety and security requirements Nine provinces and two territories have PN agreements with federal government The Way Forward: Budget 2012 commitment to work with PTs to: Develop minimum standards on language Make PN programs more economically focused PNs by the Numbers Planned range for 2012: 42,000-45,000 PN Profile: Roughly 50% nominated in a Skilled Worker (university degree) stream Roughly 20% nominated in a Semi-Skilled Worker (no university degree) stream 85.7% have some post-secondary education 81.8% speak English alone (self-report) 74.8% age Main provinces of destination: Manitoba, Alberta, Saskatchewan Principal countries of origin: Philippines, China, India Outcomes: More than 90% declared employment earnings after one year in Canada Average income $35,200-$45,100 after three years 19
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