Canada recognizes the importance of high-growth industries in shaping the future job market. To support companies in these industries and foster innovation, the Honourable Sean Fraser, Minister of Immigration, Refugees and Citizenship, unveiled Canada’s inaugural Tech Talent Strategy at Collision 2023. This comprehensive strategy introduces new measures and enhancements to existing ones, aimed at enabling Canadian businesses to thrive in a competitive environment. Minister Fraser announced several aggressive attraction measures as part of the Tech Talent Strategy:
- Creation of an open work permit stream for H-1B specialty occupation visa holders in the US, allowing them to apply for a Canadian work permit. Additionally, study or work permit options will be available for their accompanying family members.
- Development of an Innovation Stream within the International Mobility Program to attract highly talented individuals. This includes employer-specific work permits for up to five years for workers destined to contribute to Canada’s industrial innovation goals, as well as open work permits for up to five years for highly skilled workers in select in-demand occupations.
- Restoration of the 14-day service standard for work permits under the Global Skills Strategy, ensuring faster processing times.
- Promotion of Canada as an appealing destination for digital nomads.
- Introduction of a STEM-specific draw under category-based selection to issue additional invitations to apply under the Express Entry program.
- Improvements to the Start-up Visa Program, including an increase in available spots for 2023, with further increases planned for 2024 and 2025. Notable changes include the ability to apply for a work permit lasting up to three years instead of one year, and the option to apply for an open work permit rather than being limited to working for one’s own start-up. The three-year open work permit will be available to all members of the entrepreneurial team, not just those deemed essential and urgently needed in Canada. Priority will be given to applications supported by venture capital, angel investor groups, and business incubators with committed capital, as well as applications supported by business incubators affiliated with Canada’s Tech Network.
The Government of Canada is showing its commitment to embracing its emerging role as a global leader in tech talent recruitment and attraction. By filling in-demand jobs today and attracting skilled individuals and business talent, Canada aims to create the jobs of tomorrow.
The minister said that the ambitious goals set in immigration are a source of enthusiasm, as they are not solely focused on numbers but are strategically oriented. The aim of Canada’s first-ever immigration Tech Talent Strategy is to attract newcomers who can contribute to establishing Canada as a global leader in various emerging technologies. The collaboration of the tech, start-up, and business communities has been invaluable in the development of this strategy. Canada’s immigration advantage lies in its fast and flexible approach, which enjoys broad support from Canadians.
A little background:
The Government of Canada is actively embracing its emerging role as a leader in global tech talent recruitment and attraction. The objective is not only to fill in-demand jobs but also to attract the skills and business talent necessary to create future job opportunities. The Honourable Sean Fraser, Minister of Immigration, Refugees, and Citizenship, announced a comprehensive approach that involves four key pillars, including additions and improvements to programs offered by Immigration, Refugees and Citizenship Canada (IRCC).
The first pillar focuses on developing a new Innovation Stream under the International Mobility Program to attract highly talented individuals. This stream aims to address persistent labor shortages in key tech occupations by providing employer-specific work permits for up to five years and open work permits for up to five years for highly skilled workers in select in-demand occupations.
The second pillar involves promoting Canada as a destination for digital nomads. IRCC will collaborate with public and private partners to explore additional policies that would attract digital nomads to Canada. Digital nomads who initially enter Canada to work remotely may have the opportunity to transition to working for Canadian employers by applying for temporary work permits or even permanent residence.
The third pillar focuses on improving labor mobility in North America by creating a streamlined work permit for H-1B specialty occupation visa holders in the US. Starting from July 16, 2023, H-1B visa holders and their immediate family members will be eligible to apply for an open work permit of up to three years in Canada, providing them with the flexibility to work for any employer in the country.
The fourth pillar involves enhancing existing programs that cater to workers in high-skill tech occupations. The Global Skills Strategy, designed to support Canadian employers in accessing highly skilled talent, has improved processing times for work permit applications. The Start-up Visa Program, which offers a path to permanent residence for foreign entrepreneurs, has increased the number of spots available and introduced changes such as allowing applicants to apply for an open work permit of up to three years instead of a one-year permit limited to their own start-up.
These measures aim to address labor shortages, attract global talent, and support the growth of Canada’s tech industry. The government acknowledges the valuable input from stakeholders and plans to announce additional strategies to further improve program effectiveness and processing times.
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The launch of the Innovation Stream is scheduled for the end of this year, with options being developed based on stakeholder feedback gathered during recent consultations.
Starting from July 16, 2023, the new work permit for H1-B specialty occupation visa holders will be available. Approved applicants will receive an open work permit valid for up to three years, allowing them to work for any employer in Canada. Spouses and dependents will also have the opportunity to apply for a temporary resident visa with a work or study permit if needed.
This measure will be in effect for one year or until Immigration, Refugees and Citizenship Canada (IRCC) receives 10,000 applications. Only principal applicants will count towards the application cap, not their accompanying family members.
The Global Skills Strategy, launched in 2017, includes four policies aimed at supporting Canadian employers in accessing highly skilled talent. Employment and Social Development Canada now meets the two-week standard for processing Global Talent Stream labor market impact assessments, while IRCC meets the two-week standard for work permit applications.
Changes to the temporary work permit option for Start-up Visa Program applicants, along with the implementation of a new application prioritization plan, are expected later this year.
In 2021, Canada’s information and communications technology sector employed nearly 720,000 Canadians and accounted for over 44% of private research and development spending in the country. The sector contributed more than 15% to Canada’s overall GDP growth between 2016 and 2021.
According to CBRE’s report on tech talent concentration in 2022, Canadian cities represented 11 out of the top 62 markets in North America. The report also ranked Canadian cities among the top ten for tech industry job growth between 2016 and 2021.
Canada was ranked as the most attractive destination for immigrant entrepreneurs in a 2023 report by the Organization for Economic Co-operation and Development (OECD). The ranking considered various factors such as access to capital, corporate tax rates, workforce skills, university strength, quality of life, and immigration policies for entrepreneurs and their families.