Immigration, Refugees and Citizenship Canada (IRCC) has proposed an amendment to the Immigration and Refugee Protection Act (IRPA) to establish a new permanent economic immigration class for workers with experience and training classified under Training, Education, Experience, and Responsibilities (TEER) levels 4 and 5.
The IRCC states that this pathway aims to modernize the economic immigration system by broadening the selection of permanent residents to include candidates with a wider variety of skills and experiences.
Ministerial instructions providing further details about the new class and its pathways are expected to be published this fall in the Canada Gazette, according to IRCC.
Expansion of Canada’s TEER System
Canada’s TEER system, introduced in 2022 as part of the evolution of the National Occupation Classification (NOC) system, categorizes occupations into “TEER” levels, replacing the “Skill Levels” from NOC 2016.
TEERs 0-3 cover occupations typically requiring post-secondary education or a specific apprenticeship duration. TEERs 4 and 5 include jobs needing only a high school education, on-the-job training, or in some cases, no formal education but short-term work demonstration.
Currently, occupations under TEERs 4 and 5 are generally ineligible for federal economic immigration programs like those managed by Express Entry. As a result, newcomers working in these roles often face more challenges in attaining permanent residency, contributing to Canada’s temporary resident population.
Many newcomers arrive as temporary residents and due to the current labor market, some end up in what Statistics Canada defines as “low-skilled” positions. A study released earlier this year by Statistics Canada noted a shift in the employment of temporary foreign workers (TFWs) and international students toward low-skilled sectors, such as accommodation and food services, and retail trade.
This shift could lead to a higher proportion of low-skilled TFWs among new immigrants, impacting their earnings and integration into Canada’s economy. TFWs and international students in these positions often face low earnings and slow earnings growth, delaying their economic integration.
Temporary Resident Levels in Canada
The creation of new permanent resident pathways for TEER 4 and 5 newcomers exemplifies IRCC’s strategy to reduce the number of temporary residents in Canada. Earlier this year, the department announced its goal to stabilize these numbers, which peaked at over 2 million in 2023. The department indicated that such levels were unsustainable for Canada’s economy. Immigration Minister Marc Miller noted that Canada has recovered 138% of the jobs lost during the COVID-19 pandemic.
Traditionally, there has been no cap on temporary residents, including workers, students, and visitors. However, this year, IRCC reversed this policy, implementing a hard cap on the number of international student applications it will process. Additionally, temporary resident levels will be included in the 2025-2027 Immigration Levels Plan, expected to be released by November 1.
Another measure to control the number of temporary residents is increasing the number of “domestic draws,” which focus on making current temporary residents permanent before bringing in more foreign nationals. Recently, there has been an increase in Express Entry draws for candidates with provincial nominations and those in the Canadian Experience Class, who are typically already living and working in Canada as temporary residents. In July alone, IRCC issued 14,575 invitations to apply to these candidates.
These measures help IRCC achieve its annual permanent resident targets for this year and the next, while also reducing the temporary resident population.
Contact us for more information.
