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The government has created a new permanent resident class specifically for semi-skilled workers, a move expected to significantly impact the immigration and labor markets. This initiative aims to address severe labor shortages in several industries by providing a pathway to permanent residency for individuals with the necessary skills who may not fall into traditional high-skilled categories.
This strategy might have significant effects on the labor force and the economy as a whole by valuing semi-skilled labor and providing them with a stable and secure status.
Introduction
The Immigration and Refugees Protection Act may be amended by Immigration, Refugees, and Citizenship Canada (IRCC) to create a new permanent economic immigration class for workers with training and experience at levels four and five of training, education, experience, and responsibilities.
The agency states that by allowing individuals with a broader range of skills and experience to be considered for permanent residency, this pathway would help modernize the economic immigration system. Ministerial instructions with more details about the new class and pathways are expected to be published in the Canada Gazette this autumn, according to the IRCC.
Canada’s Tier System
In 2022, Canada implemented the tier system as a component of the National Occupation Classification (NOC) system’s progression. The skill levels in NOC 2016 are replaced by tiers in the system, which classify vocations.
Tiers 0–3 are for jobs typically requiring an apprenticeship or higher education. Tiers 4 and 5 cover roles that need a high school diploma, on-the-job training, or, for tier 5, no formal education but may require a brief work demonstration.
Currently, federal economic immigration programs under Express Entry are not typically open to Tiers 4 and 5. This creates greater barriers to permanent residency for immigrants working in specific fields, increasing the temporary resident population in Canada.
Many immigrants enter Canada as temporary residents and work in jobs classified by Statistics Canada as low-skilled. A Statistics Canada study published earlier this year found that temporary foreign workers and international students are increasingly employed in lower-skilled industrial sectors.
These sectors include retail, lodging, and food services. The report suggests that these trends could lead to a higher percentage of low-skilled TFWs, resulting in low incomes and slow wage growth, which may delay their economic integration in Canada.
Temporary Resident Levels
The IRCC is working to reduce the number of temporary residents in Canada by creating new pathways to permanent residence for Tier 4 and 5 arrivals. The government announced earlier this year its goal to normalize these numbers, which peaked at over 2 million in 2023.
The department stated, citing a declaration from Immigration Minister Mark Miller at the time, that these levels were no longer viable for Canada’s economy. 138% of the jobs lost during the COVID-19 pandemic have been recovered by Canada. Temporary inhabitants, including laborers, students, and guests, have not historically been subject to caps.
This year, the IRCC altered the policy and set a hard cap on the total number of applications from overseas students that it will accept. In addition, the IRCC is including temporary resident levels in the 2025–2027 immigration levels plan, which is anticipated to be unveiled on or around November 1. This is another method the IRCC will control the number of temporary residences by raising the number of domestic draws.
This indicates that before considering the immigration of more foreign nationals from outside, the IRCC has been trying to make temporary residents who are already residing in Canada permanent residents. The number of Express Entry drawings for candidates who have received a provincial nomination and those who are in the pool through the Canadian Experience Class has increased recently.
Most of these candidates are temporary residents who are currently residing and working in Canada. The IRCC sent 14,575 Invitations to Apply to these candidates in July alone. By taking these steps, the IRCC will be able to reduce the number of temporary residents while also reaching its yearly target of permanent residents for both the current and the next year.
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Final Thoughts & Mode of Application
The proposed permanent resident class for semi-skilled workers is a hotly debated topic. If implemented, it could offer individuals valuable stability and advancement opportunities while providing essential support to industries in need of semi-skilled labor.
To ensure the idea meets the needs of both employers and workers, stakeholders and policymakers must carefully consider its implications as it moves forward.