Canada's immigration system plays a pivotal role in the nation's economic growth, and work permits are a key component of this system. Economic immigrants coming to Canada often require work permits to support themselves while pursuing permanent residence. In this blog post, we delve into two recent studies by Statistics Canada to examine which programs deliver the most work permits and how many newcomers successfully find employment in Canada.
1. Work Permit Programs in Canada:
Canada offers two primary pathways for work permits: the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP). These programs consist of various streams designed to cater to different scenarios.
The TFWP is aimed at addressing labor shortages in Canada, especially in cases where domestic recruitment has proven insufficient. Work permits issued under the TFWP require a Labor Market Impact Assessment (LMIA), which assesses the impact of hiring a foreign worker on the Canadian labor market. TFWP work permits are often tied to a specific employer in a particular industry.
In contrast, the IMP serves Canada's broader social, cultural, and economic objectives. IMP work permits do not necessitate an LMIA and are often open work permits, allowing holders to work for nearly any employer in various industries.
Over the past decade, the IMP has gained prominence, while the TFWP's share of issued work permits has declined. In 2010, TFWP work permits constituted 32.9% of the total 531,700 issued, compared to 42.4% for IMP work permits. By 2021, out of 963,400 issued work permits, TFWP work permits represented only 15.1%, while IMP work permits made up 54.6% in the same year.
This shift indicates the growing importance of the IMP, particularly in streams like post-graduation employment and study-related work permits. These streams have seen significant growth in the last decade, offering opportunities for immigrants to improve their language proficiency, build connections, and gain Canadian education credentials.
2. Finding Employment in Canada:
For many work permit holders in Canada, the next step towards permanent residence is securing a job. Gaining Canadian work experience is essential, as most economic immigration pathways require a minimum of one year of eligible Canadian work experience.
In 2020, out of 991,500 work permit holders, 68% reported positive incomes through employment. While this percentage may appear lower than expected, various factors may affect this statistic, including permit holders not residing in Canada despite their valid status or not actively seeking employment. When considering those with study permits who reported a positive income in 2020, the participation rate rises to 83%, although work done during the time as an international student does not count towards PR eligibility.
Work permit holders in the TFWP agriculture programs had the highest rate of reported positive income at 92%. Among IMP streams, post-graduation employment work permit holders reported a 76% participation rate, followed by Intra-company transferees (66%) and International Experience Canada (IEC) work permit holders (62%).
Age-wise, individuals aged 25-34 exhibited the highest participation rate at 68%, closely followed by those aged 35-44 at 67%.
In terms of work permit duration, individuals with permits valid for 10-12 months had the highest labor market participation rate at 74%. This trend remained consistent, with longer work permit durations correlating with higher participation rates.
Conclusion:
While the data suggests the growing significance of the IMP, especially in relation to study-related work permits, there is no one-size-fits-all path to work permits and eventual permanent residence in Canada. Each applicant's unique circumstances, such as international tuition fees, must be considered when making decisions.
The studies do have limitations, including the use of outdated methods for counting work permit holders, a lack of distinction between those actively seeking employment and those who are not, and the exclusion of self-employed individuals from immigration analysis. Nevertheless, these insights provide valuable information for individuals seeking work permits in Canada and highlight the country's commitment to immigration as a means to address labor market needs and drive economic growth.
To learn if you qualify to work in Canada, Schedule your PRELIMINARY INTERVIEW with one of our experienced consultants and take your first step toward more opportunities.
Comments