5 Key Canadian Tech Talent Immigration Solutions
Published:
August 10, 2023
Author(s):
Canada’s first Tech Talent Strategy aims to aggressively attract tech talent to “fuel innovation and drive emerging technologies forward”. Announced on June 27, 2023, the timing might initially seem counter-intuitive: as of June 2023, Canadian-headquartered tech companies laid off about 7,800 workers since the start of 2022, according to website global tech-sector layoff tracker Layoffs.fyi as reported by the Globe & Mail. But that doesn’t mean there’s decreased demand for tech talent; that demand has just migrated from tech companies to “traditional” companies, where there remains a critical shortage of skilled tech workers and a demand for innovative entrepreneurs to become Canada’s next tech talent employers. If you’re an entrepreneur making the move to Canada or in the market for tech talent, here are five key immigration solutions the Tech Talent Strategy offers you.
1. Targeting U.S. Resident Foreign Tech Workers
The most immediately impactful element of the Tech Talent Strategy, the new H-1B Specialty Occupation Visa Holder Work Permit targets the significant pool of foreign tech talent currently residing in the U.S. The H-1B program is the largest U.S. temporary work visa program: 50,000 U.S. employers employ about 600,000 non-U.S. workers. The H-1B program is intended to let U.S. employers fill labor shortages for highly specialized jobs that require a college degree by providing immigrant workers with work authorization in technology, accounting, health and medicine, teaching and similar fields. But most H-1B workers actually work in computer systems analysis, software development, and similar fields.
Effective July 16, 2023, H-1B specialty occupation visa holders in the U.S. and their immediate family members became eligible to apply for a Canadian work permit – without meeting the typical requirement that they first need a Canadian job offer. The attractiveness of the H-1B Visa Holder Work Permit quickly became apparent: while the program was intended to be open for a year, applications maxed out at 10,000 visa holder applicants within 48 hours. Immigration, Refugees and Citizenship Canada (IRCC) (the Canadian government department responsible for processing immigration applications) must still process these applications and while the criteria are minimal, there’s the possibility some applicants will be excluded by, for example, medical or criminal background checks. And it’s not clear yet whether this Work Permit stream will continue or expand. While Canadian employers can’t use this Work Permit to recruit specific tech talent from the U.S., it will give Canadian employers fast access to a deep pool of tech talent – many of whom likely have no Canadian job lined up. And approved H-1B Visa Holder Work Permit applicants receive an Open Work Permit of three years’ duration – advantageous to both H-1B visa holders and Canadian employers:
Job Mobility. An H-1B visa holder is tied to their U.S. employer: they are only eligible to work for that employer. With an Open Work Permit, workers under the H-1B Visa Holder Work Permit aren’t tied to one Canadian employer or job: they can live and work for almost any employer anywhere in Canada.
Increased Security. If an H-1B visa holder loses their job in the U.S., they could lose their status in the U.S. and must either find a new employer to sponsor them for a new U.S. visa or leave the country. With an Open Work Permit, if a worker approved for an H-1B Visa Holder Work Permit loses their Canadian job or changes jobs voluntarily, their status in Canada isn’t jeopardized.
More Time. H-1B visa holders in the U.S. have no guarantee their U.S. visa will be renewed or extended upon expiry. With an Open Work Permit, workers under the Canadian H-1B Stream have options to work in Canada and apply for and obtain Canadian permanent residence before their Work Permit expires.
Speed & Cost. Open Work Permits are exempt from the typical requirement that the employer obtain a Labour Market Impact Assessment (LMIA), which can be costly and time-consuming, or submit an Online Offer of Employment before recruiting for and hiring a foreign worker.
Less Administration. Canadian employers must still comply with Canadian immigration laws. However, the requirement that employers keep records respecting Temporary Foreign Workers for six years – and the power of Employment and Social Development Canada (ESDC) to conduct random audits of those records – doesn’t apply to employers of workers under an Open Work Permit (although it’s still good practice).
2. International Mobility Program Innovation
The existing International Mobility Program (IMP) is about to get even better. The IMP is appealing because it offers multiple streams designed to attract specific temporary foreign workers – and they are all LMIA-exempt. There are currently six IMP streams, including the Intra-Company Transfer Program and the Post Graduation Work Permit Program. As part of Canada’s Tech Talent Strategy, the government announced it will launch a new Innovation Stream under the IMP by the end of 2023. Few details of the new Stream are available yet but so far, we know:
Innovation Focussed. The government has indicated the new Innovation Stream is intended to support Canada’s “innovation priorities and high-tech industries”. However, the specific eligibility criteria are still to come.
LMIA-Exempt. The IMP is a LMIA-exempt program and the government announcement signalled the new Innovation Stream will also be LMIA-exempt. This makes the Stream a faster and less expensive way for employers to attract Temporary Foreign Workers.
Work Permit Options. The government announced IRCC is considering one – or both – of two work permit options:
- “Employer-Specific” Work Permit of up to five years’ duration for workers going to work for a company that the federal government identifies as contributing to Canada’s industrial innovation goals. An Employer-Specific Work Permit allows a Temporary Foreign Worker to work according to the Work Permit conditions and generally ties the worker to a single employer for the duration of the Work Permit. We don’t yet know what criteria the government will use to determine employers that contribute to Canada’s “industrial innovation goals”.
- Open Work Permit of up to five years’ duration for highly skilled workers in select in-demand occupations. Again, we don’t yet know what occupations the government will select.
3. Start-up Visa Program Reboot
Options for entrepreneurs to immigrate to Canada are limited; most of Canada’s numerous economic pathways require a foreign worker to have a job offer from a Canadian employer in hand. But with recently announced changes to Canada’s Start-up Visa Program, they’re about to expand, initially adding more innovators to the job market and ultimately growing Canada’s innovation ecosystem. Canada’s Start-up Visa Program is already focussed on attracting immigrant entrepreneurs with the skills and potential to start and build businesses in Canada that are innovative, can create jobs for Canadians and can compete on a global scale. And in theory, it already had a lot going for it:
Permanent Residence Path. The Start-up Visa Program offers applicants the opportunity to apply for permanent resident status – and for a one-year Temporary Work Permit allowing them to work on their start-up (but only their start-up) while their permanent residency application is being processed.
Reduced Risk. In many other countries, founders risk losing their opportunity for permanent residence if their start-ups don’t hit certain milestones. But in Canada, obtaining permanent residence under the Start-up Visa Program isn’t tied to the start-up’s success.
More People. The Start-up Visa can apply to up to five founders per company, plus their families.
The government recognized the Start-up Visa Program is a useful tool to attract entrepreneurs to Canada – but it needed to be better. The Tech Talent Strategy includes key changes to the Program to take effect later in 2023:
Bigger & Faster. The government announced it has tripled the allocation of permanent resident spots to the Program and plans to increase it again in the next two years. And it will move both current and new Start-up Visa applications supported by a “designated organization” to the front of the processing line. Ultimately, more people, faster.
Increased Flexibility. The temporary one-year Work Permit option will change to an Open Work Permit of up to three years. This means applicants aren’t limited to working solely for their own start-up for the first three years, when most are unprofitable, and can earn money working for any Canadian employer – and it makes them available to talent-hungry Canadian employers. This change will also ease the impact of the permanent residence backlog: the wait time for applicants to be eligible for permanent residence under the Program has gradually increased from 6 months at its launch to 37 months in August 2023, the longest of any Canadian immigration program except self-employed applicants.
Even More People. Only the members of the start-up’s entrepreneurial team that the supporting “designated organization” identifies as essential and urgently needed in Canada can currently apply. With the changes, the Open Work Permit will be available to every member of the entrepreneurial team, making the Program even more attractive and accessible to entrepreneurs.
4. Full STEM Ahead
The government also announced targeted draws for STEM (Science, Technology, Engineering and Math) jobs via Canada’s Express Entry system. As of 2022, under the Express Entry system the Canadian government has the flexibility to select applicants to apply for permanent residency in Canada based on the highest-scoring candidates within specific occupations or industries. In May 2023, the government announced it would hold category-based selection draws for Express Entry candidates and chose six categories for 2023, including STEM occupations. Announced in June 2023 as part of the Tech Talent Strategy, the government quickly held the first draw on July 5, 2023, which led to 500 invitations to applicants in STEM jobs to apply for permanent residency in Canada, likely increasing the available pool of workers with much-needed tech skills in Canada.
5. A Home for Digital Nomads
Technological advancements and the recent COVID-19 pandemic mean more can and are choosing to work from just about anywhere – and they now have a name: “digital nomads”. Of course, working remotely from home or otherwise carries its own challenges for employers. That aside, all remote workers can already apply to enter Canada and work for a foreign employer as visitors for up to six-month stints. However, the government’s Tech Talent Strategy includes a stated intention to attract more digital nomads to Canada, though it hasn’t yet said much about how it will achieve this or what the end game is. But it could include options to give digital nomads priority status to enter Canada, let them stay longer, and ultimately keep them here.
Please contact your McInnes Cooper lawyer or any member of our Business Immigration Team @ McInnes Cooper to discuss putting Canada’s Tech Talent Strategy to work for you.
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