Canada’s Fall Economic Statement Includes $1.6 Billion For Ambitious Immigration Levels Plan

Canada’s Fall Economic Statement set aside $1.6 billion over six years and $315 million a year after that to deliver its ambitious 2023 to 2025 Immigration Levels Plan.

The federal government’s Fall Economic Statement also allocated $50 million this year and next year specifically aimed at tackling a crippling processing backlog.

Finance Minister Chrystia Freeland outlined the spending in her budget announcement on Thursday. 


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It comes after Immigration Minister Sean Fraser tabled the latest Immigration Levels Plan earlier this week, which will see Canada welcome 1.45 million immigrants in the next three years.

Annual levels will grow to 500,000 by 2025, dominated by the Economic Class.

“Today’s Fall Economic Statement is focused on building an economy that works for everyone – an economy that creates good jobs and makes life more affordable for Canadians,” Freeland said. 

“Even as we face global headwinds, the investments we are making today will make Canada more sustainable and more prosperous for generations to come.”

The Fall Economic Statement itself outlined exactly how important immigration has become to Canada’s economy, with a new record of more than 430,000 newcomers expected to be welcomed this year.

“Immigration is core to our identity as Canadians, while also being a key driver of Canada’s economic growth,” the statement said.


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Immigrants arriving over the next three years “will help to address persistent labour shortages, including in healthcare, manufacturing, and the building trades”, said the statement.

“This builds on steps the government has already taken to respond to Canada’s labour market needs as part of the Express Entry system,” it said.

“At the same time, the government will continue to invest in the processing capacity to ensure that all applications are processed as quickly as possible and to eliminate backlogs.”

The immigration increases announced by Fraser include 301,250 new immigrants in the Economic Class alone, as Canada continues its commitment to help businesses beset with chronic labour shortages.

Immigration accounts for almost 100 per cent of Canada’s labour force growth, and, by 2032, it is projected to account for 100 per cent of Canada’s population growth, Immigration, Refugees and Citizenship Canada says.

Canada’s 2023 to 2025 Immigration Levels Plan

2023 2024 2025
Overall Planned Permanent Resident Admissions 465,000 485,000 500,000
Economic Federal High Skilled 82,880 109,020 114,000
Federal Economic Public Policies 25,000
Federal Business 3,500 5,000 6,000
Economic Pilots: Caregivers; Agri-Food Pilot; Rural and Northern Immigration Pilot; Economic Mobility Pathways Project 8,500 12,125 14,750
Atlantic Immigration Program 8,500 11,500 14,500
Provincial Nominee Program 105,500 110,000 117,500
Quebec Skilled Workers and BusinessFootnote6 See the Quebec immigration plan To be determined To be determined
Total Economic 266,210 281,135 301,250
Family Spouses, Partners and Children 78,000 80,000 82,000
Parents and Grandparents 28,500 34,000 36,000
Total Family 106,500 114,000 118,000
Refugees and Protected Persons Protected Persons in Canada and Dependents Abroad 25,000 27,000 29,000
Resettled Refugees – Government-AssistedFootnote7 23,550 21,115 15,250
Resettled Refugees – Privately Sponsored 27,505 27,750 28,250
Resettled Refugees – Blended Visa Office-Referred 250 250 250
Total Refugees and Protected Persons 76,305 76,115 72,750
Humanitarian and Other Total Humanitarian & Compassionate and Other 15,985 13,750 8,000

Economic Class

The Provincial Nominee Program and Federal High Skilled categories will dominate the Economic Class newcomers.

PNP newcomers will account for 105,000 new permanent residents in 2023, 110,000 in 2024 and 117,500 in 2025.

Canada will also welcome 82,880, 109,020 and 114,000 in 2023, 2024 and 2025 respectively through the Federal High Skilled stream, mainly managed by Express Entry.

The stream includes newcomers through the Federal Skilled Worker, Federal Skilled Trades and Canadian Experience Class programs.

The Atlantic Immigration Program will also grow to 14,500 newcomers by 2025, and other economic pilots to 14,750.

Family Class

Canada’s Family Class category will grow to 106,500 in 2023, then 114,000 in 2024 and 118,000 by 2025.

Most family sponsorship newcomers will be spouses, partners and children, growing to 82,000 by 2025. However, there will also be room for a record number of parents and grandparents, at 36,000 by 2025.

Refugees

Canada will continue to welcome large numbers of refugees, including 76,305 in 2023, 76,115 in 2024 and 72,750 in 2025.

More Highlights of the 2023 to 2025 Immigration Levels Plan

  • a long-term focus on economic growth, with just over 60% of admissions in the economic class by 2025.
  • using new features in the Express Entry system to welcome newcomers with the required skills and qualifications in sectors facing acute labour shortages such as health care, manufacturing, building trades and STEM (Science, Technology, Engineering and Math).
  • increases in regional programs to address targeted local labour market needs, through the Provincial Nominee Program, the Atlantic Immigration Program, and the Rural and Northern Immigration Pilot.
  • reuniting more families faster.
  • ensuring that at least 4.4% of new permanent residents outside Quebec are Francophone.
  • support for global crises by providing a safe haven to those facing persecution, including by expanding the Economic Mobility Pathways Pilot.

Canada Needs More Economic Newcomers In Immigration Levels Plan: Business Council

A leading businesses advocacy group says economic immigration to Canada needs to be increased to almost two-thirds of all newcomers to the country to help companies dealing with serious labour shortages.

Immigration Minister Sean Fraser laid out Ottawa’s plans for immigration for the next three years Tuesday.

In its 2023-2025 Immigration Levels Plan, the federal government is targeting record immigration to Canada each year through 2025. 

The target for next year is 465,000 new permanent residents. The country would then welcome 485,000 new permanent residents in 2024 and 500,000 in 2025.

That’s a total of 1.45 million immigrants to Canada over the coming three years. 


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The Business Council of Canada thinks that record immigration is great. But the business advocacy group also wants Ottawa to make economic immigration a bigger piece of that immigration pie.

“Unfortunately, economic-class permanent residents represent only 58.5 per cent of total admissions in the plan announced today,” said Goldy Hyder, the Business Council of Canada’s president and CEO, in a statement.

“This is far fewer than the number needed to support Canadians’ high standard of living.”

Immigration, Refugees and Citizenship Canada (IRCC) data for the first eight months of this year reveal the country welcomed 186,195 new permanent residents through economic immigration programs during that period.

Economic Immigration On Track To Be 60.2 Per Cent Of All Immigration To Canada This Year

Those who came to Canada through those economic immigration programs in the first eight months of this year comprised 60.2 per cent of the total 309,240 new permanent residents to the country during that period.

Based on that trend, Canada is already on track to welcome 279,292 new permanent residents under economic programs this year, roughly 2.6 per cent or 7,267 new permanent residents more under those programs than Ottawa is targeting for next year under the new immigration levels plan.


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Adopting the Business Council of Canada’s target of 65 per cent for economic immigration, the country would see 302,250 new permanent resident under economic immigration programs out of the total 465,000 next year.

That would be 30,225 more immigrants under economic programs next year, another 31,525 extra in 2024, and 32,500 more in 2025 than are currently to be allowed under the latest immigration levels plan. 

The Business Council of Canada’s higher economic immigration target could mean 94,250 more workers settling in Canada over the next three years than the 848,250 currently projected under the latest immigration levels plan.

Eight Out Of 10 Businesses Having Trouble Finding Staff, Survey Reveals

A survey of Business Council of Canada members earlier this year revealed 80 per cent of them are having trouble finding skilled workers and 67 per cent of those businesses have canceled or delayed major projects because of the labour shortages. 

The business association maintains economic immigration is critical to growing the Canadian economy.

“Every job that is not filled represents one less person contributing to Canada’s economic growth and one less person paying taxes to support Canada’s social infrastructure,” said Hyder.

Canadian employers can recruit and hire foreign nationals through the Temporary Foreign Worker Program (TFWP) and the International Mobility Program (IMP).

The Global Talent Stream (GTS), a part of the TFWP, can under normal processing situations lead to the granting of Canadian work permits and processing of visa applications within two weeks.

Employers can also bring in foreign nationals to fill available positions through the Express Entry system, which receives immigration applications online.

It powers the Federal Skilled Worker Program (FSW), Federal Skilled Trades Program (FST), and Canada Experience Class Program (CEC) which all draw from the Express Entry pool of candidates. Those with the required Comprehensive Ranking System (CRS) scores are then sent Invitations to Apply (ITAs) in regular draws.

Canada Immigrations Application Backlog At 2.5m In Early October

A hiring blitz at Immigration, Refugees and Citizenship Canada (IRCC) is barely making a dent in the department’s inventory of applications for permanent and temporary residency and citizenship.

At the end of the first week of June this year, there was a backlog of roughly 2.39 million applications at the IRCC. 

Fast forward four months and the IRCC’s backlog of applications is even higher at more than 2.5 million.


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That’s despite a hiring blitz announced about a month ago to bring on 1,250 more employees at the immigration department this fall and several measures announced in late April to help Canadian employers deal with the challenge of finding employees amid a severe labour shortage.

In late April, the IRCC announced:

  • the resumption of Express Entry draws starting in July of this year;
  • a temporary policy to give recent international graduates with expiring temporary status the opportunity to stay in Canada longer;
  • the extension of a temporary public policy to allow foreign nationals in Canada as visitors to apply for an employer-specific work permit without having to leave Canada until the end of February 2023, and;
  • policy changes benefiting those who applied for permanent residence via the Temporary Resident to Permanent Resident (TR-to-PR) pathway last year.

Despite those changes, the backlog at the IRCC initially only grew over the summer as the immigration department was flooded with a record level of applications. 

By mid-July, the IRCC was staring down more than 2.6 million applications. 

Since then, the department has made some headway. Applications at the IRCC have since fallen by almost 4.3 per cent, or 112,432 applications.

In an emailed response to Immigration.ca, IRCC spokesperson Isabelle Dubois said the department’s performance in August and September “largely matched projections.”

The latest drop in the IRCC’s inventory of applications comes as immigration to Canada shows every sign of setting a new record again this year.

Based on the trend in the first eight months of this year, Canada is poised to welcome 463,860 new permanent residents by the end of this year, or almost 7.5 per cent more than the 431,645 targets in the Immigration Levels Plan for 2022.

Applications Are Being Processed Faster But There Record Numbers Of Them

Under pressure to deal with the backlog, the IRCC made a distinction between the number of applications it has in its inventories and applications which have taken longer to process than allowed under service standards. 

In her response to Immigration.ca, Dubois pointed out that although the total number of applications in the department’s inventory was nudging back up again in the first few weeks of October, applications are being processed faster. 

The number of applications the IRCC defines as backlog is going down.


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“The percentage of applications in backlog has remained consistent for permanent residence at 53 per cent, and decreased for temporary residence from 59 to 54 per cent and citizenship grants from 35 to 31 per cent,” wrote Dubois.

“This means that we are well on our way to meeting our goals to reduce overall backlogs and process 80 per cent of new applications within service standards – and we will continue to do what it takes to get there.”

The latest IRCC data reveals citizenship applications in the department’s inventory fell by more than 9.1 per cent, from 387,368 in mid-July to 351,964 by Oct. 3.

Permanent residency applications also fell from mid-July through to Oct. 3, decreasing almost 1.7 per cent from 514,116 to 505,562 applications, a drop of 8,554.

Applications For Privately-Sponsored Refugees Fell By 6.9%

A big chunk of the drop in permanent residency applications, 57.3 per cent of that reduction in applications in that category, is due to a decrease of 4,905 privately-sponsored refugee applications, a drop of 6.9 per cent from the 71,076 in mid-July. 

Under the economic programs, the IRCC had 9,484 fewer applications in its inventory at the start of October than it did in mid-July as the number of those applications fell almost 4.5 per cent from 211,903 to 202,419.

The biggest change in that category of programs during that period was the reduction of 7,100 applications under the Express Entry Federal Skilled Worker (FSW) program, a cut of 39.1 per cent from the 18,127 applications in July to 11,027 in early October. 

During that same period, the number of applications in the IRCC inventory for the Atlantic Immigration Pilot (AIP) was cut almost exactly in half as the federal government transitioned away from the pilot towards the permanent version of that program.

There was a drop of 7,269 in the number of Provincial Nominee Program (PNP) applications through Express Entry but that was more than offset by a  spike of 8,809 PNP applications received outside the Express Entry system. 

Applications in the IRCC inventory for the Quebec Skilled Worker program dropped by 3,626 during that period and applications under the one-time TR-to-PR pathway were down by a comparable amount, 3,966. 

Temporary residence applications in the IRCC’s inventory fell by just under four percent, or 68,474 applications, from July through to October. 

That result is largely attributable to the reduction of 62,748 study permit applications and another drop of 4,109 study permit extension applications during that period, for a total of 66,857 student-related applications, as the school year got underway.


Permanent Residence Applications as of Oct. 3, 2022

Immigration Category Program Total
Economic Agri-Food Pilot Program 830
Atlantic Immigration Pilot Programs 1,194
Atlantic Immigration Program 320
Canadian Experience Class (EE) 7,420
Canadian Experience Class (No EE) 115
Caring for Children 42
Federal Investor 4
Federal Self Employed 3,831
Federal Skilled Workers (C-50) 134
Federal Skilled Workers (EE) 11,027
Federal Skilled Workers (Pre C-50) 23
High Medical Needs 4
Home Child Care Pilot 19,842
Home Support Worker Pilot 9,034
Interim Pathway Measure 536
Live-in Caregiver 754
Provincial/Territorial Nominees (EE) 20,656
Provincial/Territorial Nominees (No EE) 44,408
Quebec Entrepreneur 249
Quebec Investor 10,484
Quebec Self Employed 78
Quebec Skilled Workers 20,944
Rural and Northern Immigration Pilot 1,167
Skilled Trades (EE) 293
Skilled Trades (No EE) 5
Start-up Business 1,599
TR to PR 47,426
Economic – Total 202,419
Family Class Children & Other Family Class 8,761
FCH-Family relations – H&C 2,575
Parents and Grandparents 53,530
Spouses & Partners 60,622
Family Class – Total 125,488
Humanitarian & Compassionate / Public Policy HC & PH class-ADM Dependant Person Overseas 44
Humanitarian & Compassionate Straight 10,868
Humanitarian & Compassionate with Risk or  Discrimination 13,635
Public Policy With RAP 38
Public Policy Without RAP 4,665
Humanitarian & Compassionate / Public Policy – Total 29,250
Permit Holders Class – Total 21
Protected Persons Blended Visa Office-Referred 195
Dependants Abroad of Protected Persons 27,088
Federal Government-assisted Refugees 30,659
Privately Sponsored Refugees 66,171
Protected Persons Landed In Canada 23,435
Quebec Government-assisted Refugees 836
Protected Persons – Total 148,384
Overall – Total 505,562

Temporary Residence Applications as of Oct. 3, 2022

Application Type Total
Study Permit 133,981
Study Permit Extension 31,373
Temporary Resident Visa 912,846
Visitor Record Extension 80,779
Work Permit 315,316
Work Permit Extension 177,354
Overall 1,651,649

Citizenship Applications as of Oct. 3, 2022

Application Type Total
Grant 387,368