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Proposed Permanent Residence Class for Semi-Skilled Workers

Immigration, Refugees and Citizenship Canada (IRCC) has proposed an amendment to the Immigration and Refugee Protection Act (IRPA) to introduce a new permanent economic immigration class for workers with experience and training at TEER (Training, Education, Experience and Responsibilities) levels 4 and 5.

The department states that this new pathway will help modernize the economic immigration system by broadening the selection criteria for permanent residents to include candidates with a wider range of skills and experiences.

IRCC notes that more details about this new class and its pathways will be outlined in ministerial instructions to be published this fall in the Canada Gazette.

Canada’s Training, Education, Experience, and Responsibilities (TEER) system

Canada’s TEER (Training, Education, Experience, and Responsibilities) system was introduced in 2022 as part of the updated National Occupation Classification (NOC) system, replacing the previous “Skill Levels” used in NOC 2016.

TEER levels 0-3 are designated for occupations typically requiring post-secondary education or an apprenticeship of a specific duration. TEER levels 4 and 5 apply to roles that generally require only a high school diploma, on-the-job training, or in the case of TEER 5, no formal education but some short-term work experience.

At present, TEER 4 and 5 occupations are generally ineligible for federal economic immigration programs, such as those managed through Express Entry. Consequently, newcomers employed in these roles often face greater challenges in becoming permanent residents, contributing to the number of temporary residents in Canada.

Many newcomers to Canada initially arrive as temporary residents, and given the current labor market, some end up in positions classified as “low-skilled” by Statistics Canada. A recent study highlighted a trend where temporary foreign workers (TFWs) and international students are increasingly employed in low-skilled sectors, such as accommodation, food services, and retail trade.

This shift could lead to a higher proportion of low-skilled TFWs among new immigrants, impacting their earnings and slowing their economic integration into Canada.

Levels of Temporary Residents

The introduction of new permanent residency pathways for TEER 4 and 5 newcomers reflects IRCC’s ongoing effort to reduce the number of temporary residents in Canada. Earlier this year, the department revealed that it aims to stabilize these numbers, which reached over 2 million in 2023.

IRCC noted that these levels were unsustainable for Canada’s economy. Immigration Minister Marc Miller stated that Canada has recouped 138% of the jobs lost during the COVID-19 pandemic.

Historically, there were no limits on the number of temporary residents, including workers, students, and visitors. However, this year IRCC has changed its approach by imposing a hard cap on international student applications. The department is also incorporating temporary resident levels into the 2025-2027 Immigration Levels Plan, expected to be released by November 1.

Additionally, IRCC plans to manage temporary resident numbers by increasing the frequency of “domestic draws.” This strategy focuses on transitioning temporary residents already in Canada to permanent status before considering new foreign applicants.

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

These initiatives aim to help IRCC meet its annual permanent resident targets for this year and next while also reducing the temporary resident population.

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