Increasing Pathways to Canada Permanent Residents

Temporary foreign workers in Canada are increasingly securing permanent residency. The primary avenues for this transition are the Canadian Experience Class (CEC) and Provincial Nominee Programs (PNP). According to a Statistics Canada study, these programs have become the main pathways for work permit holders. The Federal Skilled Worker Program (FSW) and other economic programs, such as the Caregiver programs and Quebec selection, have seen a decline in their importance.

Rising Numbers of Canada Permanent Residents

Analysts Yuqian Lu and Feng Hou noted a significant increase in temporary foreign workers obtaining permanent residency. By the end of 2022, more than 955,000 temporary foreign workers who received their first work permits from 2006 to 2020 had transitioned to permanent residency. For those who got their first work permit between 2006 and 2010, 86 percent obtained permanent residency through economic immigration programs. This figure rose to 93 percent for those who received their first work permit between 2016 and 2020.

COVID-19 Influence on Canada Permanent Residents Pathways

The Statistics Canada analysts caution against overinterpreting this trend. They believe some of the changes in pathways to permanent residency among recent arrivals may have been influenced by the COVID-19 pandemic. During the pandemic, economic immigration was primarily processed through the CEC due to special measures adopted at that time.

Growth of the Post-Graduate Work Program and Canada Permanent Residents

A significant factor contributing to the increase in the use of economic programs is the growth of the Post-Graduate Work Program (PGWP). Additionally, the number of spouses and common-law partners of skilled workers and international students has risen. The share of these groups among work permit holders transitioning to permanent residency increased significantly, from 29 percent in the 2006-to-2010 cohort to 73 percent in the 2016-to-2020 cohort.

Immigrants in Low-Level and Professional Jobs

Another Statistics Canada report reveals immigrants in Canada are increasingly taking a bigger share of both lower-level and professional jobs. In “Immigration and the Shifting Occupational Distribution in Canada, 2001 to 2021,” researchers Garnett Picot and Feng Hou found that immigrants have increasingly filled lower-level positions. During that 20-year period, immigrant workers took on many of the low-skilled jobs that previously would have been occupied by Canadian-born workers.

Entry-Level and Professional Jobs for Canada Permanent Residents

Canadian workers have moved away from lower-skilled jobs over the past two decades, creating opportunities for immigrants seeking permanent residency through economic immigration programs. Between 2001 and 2021, employment in lower-skilled occupations contracted by 500,000. As Canadian-born workers left these positions, reducing their employment by 860,000, immigrant workers and temporary foreign workers increased their employment in these jobs by 360,000.

Filling the Gap

This trend suggests that immigrant workers and temporary foreign workers filled the gap left by Canadian-born workers in lower-skilled jobs. This pattern is also evident among laborers, the lowest skill-level group. While the number of Canadian-born laborers declined, immigrant laborers and temporary foreign workers increased their employment in these roles.

Professional Jobs

Contrary to the notion that employers primarily use immigrants as a source of cheap labor, immigrants in Canada are also increasingly taking up high-paying, professional positions. Professional occupations showed the fastest employment growth in Canada, with managerial and technical skill levels close behind during the past 20 years. Immigrant workers were more likely than Canadian-born workers to move into professional jobs. However, their tendency to be in managerial or technical jobs remained relatively unchanged.

Growth in Professional Occupations

From 2001 to 2021, the number of immigrant workers in professional occupations rose by almost 92.4 percent, from 543,800 to 1,046,200. In contrast, the number of Canadian workers in these occupations grew by a more modest 30.3 percent, from 1,885,000 to 2,456,500. During this period, total employment increased by 18 percent. Professional occupations expanded the fastest, with a 48 percent surge. Managerial jobs saw the second-highest growth rate at 36 percent, followed by employment in technical occupations, which rose by 31 percent. In contrast, employment in lower-skilled jobs fell by 11 percent.