Canada Proposes New Permanent Residence Class for Semi-Skilled Workers

Introduction of a New Economic Immigration Class

Immigration, Refugees, and Citizenship Canada (IRCC) has proposed an amendment to the Immigration and Refugees Protection Act (IRPA) to introduce a new permanent economic immigration class for workers with experience and training in the Training, Education, Experience, and Responsibilities (TEER) levels 4 and 5. This new pathway aims to modernise the economic immigration system by expanding the selection of permanent residents to candidates with a more diverse range of skills and experience.

Details to Be Released This Fall

According to IRCC, ministerial instructions with more details about the new class and any pathways will be released this fall in the Canada Gazette. This new initiative is designed to support the modernization of the economic immigration system and provide more opportunities for individuals in semi-skilled occupations to become permanent residents.

Understanding Canada’s TEER System

Canada’s TEER system was introduced as part of the evolution of the National Occupation Classification (NOC) system in 2022. The system categorises occupations into TEER levels, replacing the previous "Skill Levels" in NOC 2016. TEER levels 0-3 typically require post-secondary education or an apprenticeship, while TEERs 4 and 5 cover occupations that need a high school education, on-the-job training, or, for TEER 5, no formal education but short-term work demonstration. Currently, TEERs 4 and 5 are generally ineligible for federal economic immigration programs such as those managed by Express Entry, making it difficult for newcomers in these occupations to become permanent residents.

Challenges Faced by Temporary Residents

Many newcomers arrive in Canada as temporary residents and find themselves in “low-skilled” positions. A study by Statistics Canada highlighted a shift towards low-skilled industrial sectors among temporary foreign workers (TFWs) and international students, particularly in accommodation, food services, and retail. These shifts have resulted in low earnings and slow earnings growth, delaying their economic integration.

Reducing the Number of Temporary Residents

The creation of new permanent resident pathways for TEER 4 and 5 newcomers is part of IRCC’s strategy to reduce the number of temporary residents in Canada. Earlier this year, the department announced plans to stabilise these numbers, which peaked at over 2 million in 2023. According to Immigration Minister Marc Miller, Canada has recovered 138% of the jobs lost during the COVID-19 pandemic, making the current levels of temporary residents unsustainable.

Implementing Caps and Domestic Draws

IRCC has implemented a hard cap on the number of international student applications it will process and plans to add temporary resident levels to the 2025-2027 Immigration Levels Plan. Additionally, the department is focusing on increasing the number of “domestic draws,” targeting temporary residents already living in Canada for permanent residency before considering more foreign nationals from overseas.

Recent Trends in Express Entry Draws

There has been an increase in Express Entry draws for candidates with provincial nominations and those in the Canadian Experience Class, who are typically already living and working in Canada as temporary residents. In July alone, IRCC issued 14,575 invitations to apply to these candidates.

Conclusion

These measures aim to help IRCC reach its annual target for permanent residents while reducing the temporary resident population. The new permanent residence class for semi-skilled workers is a significant step towards a more inclusive and balanced immigration system that aligns with Canada’s labour market needs and economic goals.