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Canada: Tech Talent Strategy Announced

June 28, 2023

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  • CanadaCanada

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At a Glance

The Minister of Immigration, Refugees and Citizenship announced the launch of Canada’s first-ever Tech Talent Strategy to attract foreign nationals who can help drive emerging technology innovation in the country. Key actions include:

  • Creating a work permit stream for individuals holding H-1B specialty occupation status in the United States to apply for a Canadian work permit, effective July 16, 2023;
  • Establishing an Innovation Stream under the International Mobility Program for highly-talented individuals to apply for an employer-specific or open work permit that exempts them from the Labour Market Impact Assessment requirement, by the end of 2023;
  • Promoting Canada as a destination for digital nomads; and
  • Improving the existing Global Skills Strategy and Start-up Visa Program that cater to foreign nationals in high-skill tech occupations.

The situation

The Minister of Immigration, Refugees and Citizenship (IRCC) announced the launch of Canada’s first-ever Tech Talent Strategy to attract foreign nationals who can help drive emerging technology innovation in the country.

A closer look

Change Details Impact
New open work permit stream for individuals holding H-1B specialty occupation status in the United States
  • As of July 16, 2023, individuals holding H-1B specialty occupation status in the United States will be eligible to apply for an open work permit valid for up to three years. While details on eligibility criteria are forthcoming, the new route is expected to be open to individuals who have a status that is “expiring soon”. Open work permits allow foreign nationals to work in almost any occupation for employers across Canada.
  • Their spouses and dependents will also be eligible to apply for a temporary resident visa, with a work or study permit, as required.
  • This measure will remain in effect for one year or until IRCC receives 10,000 applications. Only principal applicants (and not their accompanying family members) will count toward the application cap.

This route will expand opportunities available in Canada for skilled workers to continue to pursue their careers in the high-tech sector and contribute to economic growth in the country.

It will also benefit H-1B holders in the United States whose status is close to expiration, and who wish to remain in North America.

The open work permit will also allow employers to have their employees work across Canada at different locations.

New Innovation Stream under the International Mobility Program
  • The government is expected to develop an Innovation Stream under the International Mobility Program by the end of 2023. It will include two options:
      • Employer-specific work permits valid for up to five years for foreign nationals seeking to work for a company identified by the government as contributing to industrial innovation goals in Canada; and
      • Open work permits valid for up to five years for highly skilled workers in select in-demand occupations.

This route will exempt employers and foreign nationals from the Labor Market Impact Assessment process, which will streamline the temporary work permit process, and result in shorter processing times for eligible foreign nationals.

 

In addition, individuals who obtain open work permits will be allowed to work for any employer without further action required.
Promotion of Canada as a destination for Digital Nomads
  • Under current Canadian immigration rules, digital nomads can relocate to Canada for up to six months at a time under visitor status, provided they perform their job for a foreign employer or do not form a nexus to Canada while in Canada.
  • In the months ahead, IRCC will collaborate with public and private partners to determine whether additional policies to attract digital nomads to Canada would be beneficial to the country.
The government expects that some digital nomads who initially enter Canada to work remotely for a foreign employer will ultimately seek work opportunities within Canada for domestic employers and apply for a work permit and/or permanent residence, thus bringing their skills and talent to the local marketplace.
Improvements to the Global Skills Strategy program
  • The Global Skills Strategy, created in 2017, aims to provide faster application processing times for temporary workers who submit complete work permit applications for certain occupations.
  • The government has re-committed to a 14-day standard processing time for work permit applications under the Global Skills Strategy, which was previously not guaranteed due to backlogs throughout the COVID-19 pandemic.
Foreign nationals in eligible occupations (including managerial occupations and occupations that usually require a university degree) and their employers in Canada will benefit from faster processing times to enter Canada and start working.
Improvements to the Start-up Visa Program
  • Applicants will be able to apply for a work permit that is valid for up to three years, instead of the current validity of one year.
  • Applicants will be able to apply for an open work permit instead of one that limits work to their own start-up.
  • Applicants will no longer need to prove their role is essential to the business to obtain a work permit.
  • These measures are expected to be implemented by the end of 2023.
  • The Start-up Visa Program provides a path to permanent residence for foreign entrepreneurs who gain the support of venture capital funds, angel investor groups or business incubators to establish a start-up in Canada.
These measures will make it more appealing for immigrant entrepreneurs to enter Canada and develop their business while they wait for their permanent residence application to be processed.

Background

  • Statistics in the tech sector. According to the government, Canada’s information and communications technology sector employed nearly 720,000 Canadians and accounted for more than 44% of all private research and development spending in Canada in 2021. The sector was responsible for more than 15% of Canada’s overall GDP growth between 2016 and 2021.
  • Purpose of the Tech Talent Strategy. With its Tech Talent Strategy, the Canadian government is targeting immigrants who can not only fill current in-demand jobs, but also position Canada as a world leader in a variety of emerging technologies.
  • Focus on increased immigration. These measures build on the government’s emphasis on increased immigration to meet Canada’s changing economic and labor market needs. It follows many initiatives underway in 2023 such as new immigration streams for refugees and displaced persons, new category-based selection process for Express Entry candidates, new bilateral youth agreements, among others.

Looking ahead

Canada is likely to continue to promote policies to encourage immigration into Canada to benefit the national economy, especially in industries where labor shortages and skill gaps persist. Additional initiatives are expected as the government continues to encourage immigration to fulfill its Immigration Level Plans for 2023-2025.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

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