Is Canada’s immigration system actually broken? Here’s how it changed under Justin Trudeau

Good overview and series of informative charts:

Canada’s rapid population growth recently has been driven by immigration, which accounted for 97.3 per cent of the 724,586 net growth in the country in 2024.

Since the early 1990s, successive federal governments had maintained a steady immigration level yearly that averaged 0.75 per cent of Canada’s overall population, regardless of the boom-and-bust economic cycle. Skilled immigrants were viewed as an economic stimulant during a recession and as a source of labour supply in time of prosperity.

The number of temporary residents was relatively small. Most international students came primarily to study while foreign workers ebbed and flowed supposedly based on labour needs; those whose time was up had to go home. In the mix were asylum seekers who would become permanent residents if granted protected status. 

Riding the popularity of Prime Minister Justin Trudeau’s “sunny ways,” the Liberal government welcomed tens of thousands of displaced Syrians and slowly raised the annual immigrant intake to 0.9 per cent of Canada’s overall population in 2019.

After a nosedive in immigration in 2020 — to 0.49 per cent of the population — due to pandemic border closures, Trudeau not only extended the stay of most temporary residents, but opened the door to more in response to skyrocketing job shortages, which reached about a million vacancies….

It didn’t help that Canada’s immigration system over recent years has prioritized the transition of temporary residents in the country, many toiling in lower-skilled jobs, to permanent residents. Instead of picking skilled economic immigrants with high scores in the point selection system, so-called targeted draws were introduced in 2023 to favour candidates with lower scores but who work in an in-demand occupation or are proficient in French.

“We are not selecting the best of the best,” said Planincic. “The intent is to meet labour market needs, but it really muddies the waters, especially when the categories can change at political whims.” 

A better indicator of an immigration candidate’s value to the community and the country, she suggested, is their current earnings, which should be part of the point system….

Immigration lawyer Mario Bellissimo attributes much of the system’s chaos to the myriad “ministerial instructions,” temporary directives issued by the minister to address intake, processing, selection, or to create pilot programs.

The extraordinary authority endowed with the minister — introduced in 2008 by Stephen Harper’s Conservatives — has contributed to a patchwork of ad-hoc immigration policies with little transparency.

The ballooning temporary resident population is further fuelled by Canada’s evolving “two-step” permanent residence selection system that favours those already in the country, with Canadian education credentials and work experience. In 2022, 36 per cent of all new permanent residents had previously been in Canada on work permits, up from 19 per cent in 2010 and 33 per cent in 2019.

The population of temporary residents got out of control “because they wanted this mass pool to draw from,” said Bellissimo, adding that immigration officials have been stretched thin handling these student, work and visitor applications, compromising services….

Most people used to look past the struggles of immigrants and focus on the success of their children, but now they expect newcomers themselves to hit the ground running. Paquet said it’s time for Canadians to have a debate about the objectives of immigration.

Immigration had generally been a non-issue in modern Canadian politics because of a consensus that it’s good for the country. Might this federal election be different?

Although Donald Trump and tariffs have dominated the early part of the campaign, immigration has become a major political issue in the last few years of Trudeau’s government.

“How much will the parties talk about it and how much of a central theme will it be?” asked Paquet, research chair in politics of immigration at Concordia. “When a party decides to do that, then that tells us a lot about how the political system is changing.”

Source: Is Canada’s immigration system actually broken? Here’s how it changed under Justin Trudeau

Alicia Planincic: The provinces are losing ground to federal priorities in immigration 

Useful observation and analysis. It would benefit, however, from further analysis comparing PNP and federal economic outcomes:

A couple of months ago, the federal government made a big announcement that they were decreasing targets for immigration pretty substantially. Though there was a lot of talk about the topline numbers and what it means for the economy, what was overlooked at that time was that cuts to immigration came primarily at the expense of a single program: the Provincial Nominee Program (the “PNP”)—what represents the provinces’ role in selecting economic immigrants.

What’s important about the PNP is that it’s designed to distribute immigrants more widely across Canada (especially beyond the country’s biggest cities) and give the provinces the ability to meet local labour market needs. And, though it’s not perfect, it’s pretty effective at both.

Just how big of a hit did the program take? Pretty big.

Graphic credit: Janice Nelson. 

While total immigration was reduced by around 100,000 new permanent residents (annually), the PNP was reduced by 65,000. To put this into perspective, the PNP is just a single program within the broader “class” of economic immigration but cuts to the PNP dwarfed cuts made to the other two main classes of immigration combined (i.e., family-related immigration and refugees).

At the same time, federally-focused economic programs did not see any major cuts. In fact, their numbers grew slightly. The result of all this is that the province’s role in economic immigration, which had been steadily growing for years, is set to collapse from over 40 percent of total economic immigration down to just 24 percent.

It’s worth noting that the PNP is also losing ground to another federal priority: French-speaking immigration outside of Quebec. In fact, French language proficiency has become a key factor in selecting economic immigrants federally. Though the target for French-speaking immigration was cut marginally this year, numbers have nearly doubled over the last couple of years, with the latest target at 30,000 (compared to 55,000 for the PNP).

In other words, the current plan to decrease immigration is not just an across-the-board cut that will hit all parts of Canada equally. It comes with regional consequences, as provincial priorities lose out to federal ones.

Source: Alicia Planincic: The provinces are losing ground to federal priorities in immigration 


More commentary on reduced immigration levels

More of the commentary that I found interesting and relevant:

The Line: Dispatch from The Front Lines: Have a great trip, Jen! And where are they moving? Right now, public opinion is probably fairly reasonably grounded in reality. We think it would be broadly true today to say that Canadians still see value in immigration in the abstract, and remain good at welcoming newcomers into their own communities. We suspect that most of us have direct relationships with immigrants, and have better lives for those relationships. But we are very worried. Many of the problems that our recently unchecked immigration rates have caused or (more fairly) contributed to — including overwhelmed social services and the housing crisis — are going to continue getting worse for a number of years, since so much is already baked in. This is scary, and could mean that we see anti-immigration sentiment evolve explicitly into anti-immigrant sentiment. That would take what we have today, an embarrassing public-policy failure, and turn it into a genuine social nightmare, one from which it could take many years to recover, as newcomers pay the price for our policy failures and report back home that Canada is a place to avoid at all costs.

So, great. It’s nice to have something to look forward to. Right?

But there was one other issue that jumped out at us after the announcement this week. Both Prime Minister Trudeau and Immigration Minister Marc Miller made all-too political acknowledgments of responsibility. The prime minister went so far as to concede that his government “didn’t get the balance quite right.” Not to be outdone in the race for the most fearless and blunt mea culpa, Miller said, “Did we take too long to adjust? I think there is some responsibility there to assume.”

Wow! By whom? Tell us more, minister!

Look, let’s be blunt about this. Both your Line editors support immigration. And we both know that there is plenty of blame to go around. Many business interests and provincial leaders were desperate for more people. The federal government didn’t come up with the idea of ramping up growth to unsustainable levels all on its own. They had a lot of friends and a lot of help. The buck does stop with them. And we’re not going to let them get away with their attempts to deflect the blame. But it is fair to note that a lot of people were demanding this, and that our failure to roll out enough housing and social services to keep up with the demand rests on us, not on the people we invited to start new lives in this country. They are victims here. We sold them a bill of goods we had no ability or willingness to deliver upon. And we should be ashamed of ourselves for that. We have essentially defrauded people who just wanted to build a better lives for themselves and their families so that we could keep reaping the economic benefits of their arrival, and we kept doing that until the moment that it stopped being a good deal for us. Some future descendent of Justin Trudeau is probably going to have to offer up a tearful apology for this in a century or so. 

And it’ll take that long, clearly. This was the feds’ responsibility, and they screwed it up. It would not kill them to admit as much, openly and clearly, with a bit less of a masterclass in the passive voice than what Miller just offered the voters.

Globe editorial: Canada’s past and present were built on immigration. Our future will be too. Ottawa responded too slowly to rectify its mistakes but last week moved past tinkering. Count it as a turning point. The changes will help start to restore broad confidence in an immigration system that was long embraced by Canadians, respected around the world – and helped to build this country over many decades.

Immigration changes a ‘black eye’ for businesses, families, students, warns B.C. lawyer
“Businesses are going to suffer. The people on the ground right now — the workers here, the people on temporary status — are suffering. The students (are) totally gutted,” said Victoria immigration lawyer David Aujla. “We had a really pro-refugee, pro-humanitarian outlook, accepting people who were in crises. I think that’s going to take a big hit. I think Canada’s now got a black eye.”

The new changes will be very difficult for some newcomers waiting to bring relatives to Canada, said Jonathan Oldman, CEO of the Immigrant Services Society of B.C.

The reductions, though, will make the new levels of permanent residents similar to what happened before COVID-19, said Oldman, whose agency helps settle more than 25,000 people each year who come to B.C. for humanitarian, economic or family reunification reasons.

Will Tao, an immigration lawyer with the Burnaby law firm Heron, worries these changes are designed to “nudge” people to leave Canada if they’re facing long waiting times to become permanent residents.

“They’re obviously scared and concerned,” he said of his clients.

Prime Minister Justin Trudeau said his government didn’t get the “balance quite right” when it increased immigration targets over recent years. But Tao said achieving that balance isn’t as simple as slashing targets, which affect people from countries ranging from war-stricken Ukraine to Afghanistan where women and girls are at risk.

The impact includes post-secondary schools losing a “cash cow” of funding by losing international students, who pay far higher tuition than Canadian youth.

Tao also said some employers in the last week have pulled their support for a Labour Market Impact Assessment, a document that’s necessary to hire foreign workers, because they can’t afford the new federally mandated increase in wages for temporary foreign workers.

And while fewer immigrants may lead to less competition for affordable housing, will Canada also lose the temporary residents who are construction workers building the much-need housing?

“Immigration is a driver of economic growth and is the primary source of population growth in the near term,” Fiona Famulak, the chamber’s president, said in a statement last week. “Decreasing the labour pool will therefore add to (businesses’s) burden, not improve it, in the coming years.”

High-profile Vancouver immigration lawyer Richard Kurland said his email inbox has been clogged with messages from clients, lawyers and immigration consultants looking for solutions to this “fiasco” created by the federal government.

Those wanting to increase their chances of permanent residency should “look at your options seriously and immediately.”

C.D. Howe Institute Advisory Group on Immigration Targets: In conclusion, the Advisory Group agreed that Canada’s immigration system requires reform to better balance population growth with the country’s economic capacity. With some members supporting an annual intake of under one percent of the population for permanent immigration, the group broadly supported a gradual reduction in both permanent and temporary immigration over the coming years, with a focus on maintaining sustainable, long-term levels. Members stressed the need for a stable, transparent immigration policy that prioritizes high-skilled immigrants, addresses housing and healthcare challenges, and restores public confidence. They called for a more rigorous assessment of immigration programs and improved enforcement capacity, urging the government to set realistic, evidence-based immigration targets.

St-Arnaud : Ottawa’s cut to immigration flow may lead to economic challenges: The recent years are an example of how Canada’s immigration policies can dramatically affect the economy. The government went from one extreme, the population growing too fast, to another, growing too little. This volatility shows that both extremes can lead to economic challenges.

Orsini: Canada has lost its reputation for bringing in the best and brightest students: So what can the federal government do to rebuild Canada’s global reputation? First, when in a deep hole, stop digging. The blunt policy changes have created confusion and uncertainty, which is discouraging students from coming to Canada. We need the world’s top scientists, researchers and innovators to help grow our economy and to make up for our slowing labour-force growth rate.

Second, the federal government needs to accelerate its targeted approach to international student enrolment through a simplified and streamlined “Recognized Institutional Framework” that incentivizes good performance and focuses on quality programming and students applying to Canada. Unfortunately, including master’s and PhD students under the international student cap will further discourage highly skilled students from coming to Canada, and add further delays to an already lengthy process.

Third, the federal government needs to work with the provinces, industry and the postsecondary sector to rebuild our brand so that Canada once again becomes a destination for top talent from around the world. Our country has lost our global reputation as a top destination for talent because of changes like the latest student-permit cuts.

Alicia Planincic: What will the cut in immigration mean for Canada’s economy?  The result, however, is that at least 40 percent of the now more limited spots available for permanent residency (395,000 in 2025) will be granted based on whether a candidate is already in Canada rather than who brings the most value to the Canadian economy, longer-term. Though it’s difficult without more information to determine the extent of the impact, many current temporary residents work in lower-skill positions, meaning that higher-skill candidates—the engineers, scientists, entrepreneurs, and skilled tradespeople—who don’t yet live here could be passed over as a result.

Blit: Ottawa’s immigration cut is a chance to boost productivity: Ottawa’s policy shift sends the right signal. But further changes to immigration policy are needed. It’s time to end the recently introduced category-based immigrant selection process, which encourages companies to invest in lobbying rather than in technology. We need a full return to the “points system,” one that’s data-driven and targets the most highly skilled talent to fuel innovation and growth. The best and brightest knowledge workers are not only productive themselves, they can make others around them more productive as well.

Last week’s announcement, then, is more than just a return to sensible immigration levels. It’s a rallying cry to Canadian businesses: no more shortcuts. If Canada’s economyis going to thrive in the 21st century, it will be through ingenuity, investment and the right kind of talent – not an endless supply of cheap labour.

Century Initiative | Slashing immigration is a political shortcut, not a real solution: When a country faces large-scale social or economic change, as Canada does, we need leadership from government, and a vision based on where we are today and where we can aspire to go. Instead, we’re seeing our policymakers swing from month to month based on the opinion environment, chasing after the low-hanging fruit to reduce demand for housing over the nation-building need to plan for supply.

It doesn’t have to be this way. We can replace these fragmented, whack-a-mole efforts with a long-term, national smart growth framework — one that builds inroads between immigration targets and housing, workforce, and infrastructure.

It’s not enough to change the tires; we need to rebuild a more resilient economic engine for Canada’s future. [I almost have pity for the CI given how rapidly the debate has turned]


















Alicia Planincic: We know the one thing Canada could be doing to select better economic immigrants. So why aren’t we doing it? 

Some useful ideas but all ranking systems are imperfect predictors of success. And wages only work for two-step immigration as numbers from other countries are not easy to compare. And there are risks in changing criteria and priorities too quickly without sound evidence and data:

…Candidates receive CRS points for things like language abilities, number of years of schooling, and whether they have a sibling in Canada. But factors like what their degree was in, or where they got it from, are not reflected. Meanwhile, the biggest limitation of the points system is that it ignores labour market information. It therefore tells us little about how valuable someone’s skills are to the Canadian economy.

To go back to hockey analogies, this way of assigning CRS points is like ranking players based on the number of games they have played in the NHL, whether they have a brother in the league, and whether they speak French—while neglecting things like how many points they tend to get every year. The evaluation would not be meaningless, but it’s easy to see how some of the best players wouldn’t be ranked at the top.

To improve the CRS, Canada needs to better capture the value of the skills a candidate brings. As it turns out, the best-known way to do so is pretty simple: have the points system reflect their current earnings.

Why is that? Wages reflect both the needs of the economy (demand) and the relative availability of labour (supply). Generally speaking, if demand for a certain occupation or skillset is strong, or few are willing or able to do this work, wages will be high.

There are other ways to improve the CRS, too.

One is to remove the variables that don’t influence an individual’s economic potential. These factors not only muddy the ranking of candidates but also can unfairly bias certain people or groups. For instance, individuals can earn points for having a sibling in Canada even though the math shows this has no direct impact on economic success. Family in Canada may be a legitimate reason to consider someone for immigration, but is not an economic one, and it is being used in the economic stream. At the same time, favouring people who already have family in Canada puts individuals from smaller countries, or those with less immigration to Canada, at a disadvantage.

Another way to improve the CRS is to regularly refine it as new and better information—including the type and quality of skill (e.g., field of study, program of education) most highly valued—becomes available and can be incorporated. The CRS cannot reflect the economy of 50 years ago. It has to be the latest and greatest of today.

The recruitment of skilled talent globally is big, exciting, and holds much potential. But Canada should not lose sight of the power of the points system, nor the talent that is in plain sight. Before marketing the country to individuals around the world, Canada should do more to select the best among those who have already put their name in the hat—to support greater prosperity for all.

Alicia Planincic is the Economist & Manager of Policy at the Business Council of Alberta. She regularly provides insight and analysis on the Canadian economy, public finances, labour markets, equity and social mobility, and public policy.

Source: Alicia Planincic: We know the one thing Canada could be doing to select better economic immigrants. So why aren’t we doing it?