Canada’s immigration system must attract and select immigrants who will help meet the country’s economic needs, while fulfilling Canada’s family reunification and humanitarian commitments. The public, private and non-profit sectors must work together to ensure that immigrants are supported when they arrive, and that they do not face barriers to success. This will allow them to fully contribute to the country’s society and economy.
Canada’s prosperity was built on a foundation of permanent immigration. Admitting individuals on a temporary status to fill short-term labour market needs can be appropriate but cannot be relied upon to address long-term challenges.
Temporary foreign workers made up 4.1% of Canada’s employed workforce in 2021, representing a 61% increase compared to five years earlier.
Trending toward reduced reliance on temporary status for workers coming to Canada.
The number of temporary foreign workers has increased considerably in recent years, representing greater reliance on temporary workers to fill ongoing or long-term labour market needs. Temporary foreign workers are in a more precarious position than other workers and are unable to access the same level of supports. Greater opportunities for workers to enter as permanent residents and transition to permanent residence when filling ongoing labour market needs would have long-term benefits. Some steps have been taken recently to help improve pathways from temporary to permanent status.
International students are important contributors to growth and prosperity. International students are a key source for increased permanent immigration to help meet labour market demands.
Canada accepted 157,290 permanent residents in 2021 who had previously held a study permit.
Trending toward increasing transitions to permanent residence for international student graduates.
The number of new permanent residents who previously held study permits significantly increased in 2021, nearly quadrupling compared to the previous year. The large increase was primarily due to temporary policy changes made due to pandemic-related disruptions. International students are increasingly important to meet immigration targets and address labour market challenges. While some international students have positive experiences, others report challenges which will need to be addressed for Canada to stay ahead in future years.
The gap in income between newcomers and all Canadians is an indicator of integration for recent immigrants. It reflects whether newcomers are experiencing economic success in Canada and whether the economy is leveraging their talent and skills effectively.
There was a difference of $2,730 in 2020 in the median total income between immigrants five years after arrival and for all Canadians ($37,900 compared to $40,630).
Narrowing the income gap between immigrants five years after their arrival and all Canadians.
There was notable progress in closing the income gap between immigrants five years after arrival in 2019 and 2020 compared to previous years. However, immigrant wages remain lower than for the Canadian population overall and the gap is higher among immigrants who arrived more recently. Disparities also remain based on gender, race, and immigration category, with indications the pandemic increased inequality. Pandemic supports helped improve incomes in 2020.
Immigrants’ integration is influenced by the supports and services available to them upon arrival. Integration policies can shape immigrants’ attitudes, feelings of belonging, participation in the labour market and society, and overall well-being.
Canada ranked 4th out of 42 countries in the 2020 edition of the Migrant Integration Policy Index.
Top 5 countries in the Migrant Integration Policy Index.
Canada ranks among the top countries with comprehensive systems of support for immigrants. Governments in Canada have made significant investments in integration. However, there are disparities in support for different types of newcomers in Canada in need of integration supports, such as for temporary residents, and immigrant talent is not always effectively leveraged.
For future prosperity to be shared across the country, all provinces need to be able to retain immigrants, particularly where need for workforce growth is higher due to population aging.
The average retention rate for immigrants who arrived five years earlier was 48.4% in 2020 in the five provinces with the lowest retention rates.
More even retention across Canada for immigrants five years after they arrive, with low retention rate provinces better aligning to the average for all provinces of 65.3% in 2020.
National retention rates are high but there is significant variability in retention at a provincial level. There remains a notable gap in retention between the five provinces with the lowest retention rates and the rest of the provinces. Nonetheless, there are some recent positive signs, such as significant increases in new immigrants in Atlantic Canada.
Public support for immigration is an essential condition for Canada to effectively attract and retain immigrants and strategically grow its immigration levels over time.
In 2022, 69% of Canadians disagreed with the view that there is too much immigration in Canada.
Trending toward increased support for immigration levels across the country.
There was an increase in Canadians rejecting the view that immigration levels are too high in 2022 compared to the previous year. This is consistent with increasing support for immigration over the past two decades. Most Canadians report that they believe immigration has a positive impact on Canada, though a significant minority has a variety of concerns about immigration levels.
A strong global reputation can help attract talented immigrants to Canada, support investment and bolster global influence.
Canada ranked 3rd in the 2022 Nation Brand Index.
Top 5 countries in Nation Brand Index.
Canada is consistently among the top countries with a strong national brand. While Canada fell in its ranking compared to the previous year, Canada continues to rank high among comparator countries on key factors related to reputation such as perceptions on quality of life. However, continued work will be needed to ensure Canada’s brand remains strong in future years.
