Douglas Todd: Mixed motives fuel rise of foreign students

Not surprising that universities and other educational institutions view foreign students from an economic perspective and that foreign families consider not only the education but financial (shift money to Canada, invest in real estate) and political benefits (citizenship).

But, as in the case over the debate over housing prices, it raises policy issues:

Immigration Canada data shows about 72,000 foreign students from Mainland Chinese were accepted in 2014, 36,000 from India, 17,000 from South Korea and 13,000 from France. In total, one out of four foreign students in Canada is from China.
Canadian politicians talk in predictable ways about the increasing number of foreign students.

Wilkinson maintains Chinese and other foreign students bring “social, cultural and economic benefits.” And they pay full fees for their own educations, unlike subsidized homegrown students.

The federal Immigration Minister John McCallum often calls foreign students “the cream of the crop.”

But noted specialists in higher education, including Boston College’s Philip Altbach and Ontario’s Jane Knight, say the quality of foreign students is going down as their numbers inflate.

Most foreign students are now second tier, say Altbach and Knight. They’re generally not doing well in the schools in their countries of origin. But many have rich parents.

Given the trend, Knight argues that most Western foreign-student programs have lost their humanitarian origins and become elaborate cash grabs. They make it possible for governments like British Columbia’s to mask that they are tightening education funding.

What are some foreign students in Canada doing when they’re not studying?

Canada’s federal housing agency, looking for new methods to track foreign ownership in the country’s soaring real estate markets, has considering classifying foreign university students as foreign buyers as it steps up its investigation into global money-laundering.

Bloomberg News discovered that Canada Mortgage & Housing Corp., the Crown corporation that tracks housing data, is especially interested in how the red-hot housing markets in Toronto and Vancouver are partly fuelled by foreign students, some of whom live in multi-million-dollar homes near the UBC campus.

In a related study, urban planner Andy Yan, head of Simon Fraser University’s City Program, discovered that in a six-month period in 2015, about 70 per cent of 172 detached homes sold on Vancouver’s west side were purchased by Mainland Chinese buyers.

Yan’s research showed that, of all self-declared occupations among owners of the high-priced homes in the study, 36 per cent were housewives or students with little income.

Five of eight homes owned by “students” were bought outright with cash at an average value of $3.2 million.

Vancouver immigration lawyer Richard Kurland, a frequent adviser to the federal parliament, said it’s clear that most children from around the world who are able to afford to live and pay full education fees in expensive cities like Toronto and Vancouver are from “elite families.”

One bonus of getting children into Canada as foreign students, Kurland says, is that those who are able can become players in real-estate investment. Students are being declared as property owners of Vancouver residential property because they aid in international money transfers, Kurland said.

Foreign students have the advantage of being able to appear as residents of Canada for income tax purposes, even as their declared earned income would be extremely low.

As principal resident of a dwelling, Kurland said, a foreign student does not have to pay capital gains when his or her home is sold at a profit. “Then, out of the goodness of their heart, they can send the profit back to their uncle in China,” Kurland said with irony.

In addition to aiding the movement of trans-national wealth, however, possibly the more common reason a well-off foreign family puts a great deal of effort into establishing their son or daughter in Canada is that it goes a long way to obtaining a second passport.
Canadian politicians often rank international students as prime candidates for immigration. Roughly three out of 10 foreign students have gone on to become Canadian citizens. And that proportion is expected to rise.

Kurland believes more foreign students from China are being flown to Canada at “younger and younger ages … in part because they’re a no-fit in the Chinese educational system.” They need to establish themselves early in Canada’s educational system if they’re going to make it.

The immigration lawyer, who publishes a newsletter called Lexbase, discovered that Mainland Chinese families have doubled the rate at which they’re sending their children to Canadian elementary and high schools. Four out of 10 foreign students in Canada, including those from Mainland China, now apply for “secondary school or less.”

Source: Douglas Todd: Mixed motives fuel rise of foreign students | Vancouver Sun

International-student work program needs overhaul, report says

Great example of some of the in-depth research and analysis that IRCC/CIC do, and the importance this work can and should have in ongoing policy development and program design.

However, highly disturbing that the release of such research took a nine-month battle between the Globe and IRCC/CIC. It is one thing to apply ATIP liberally with respect to advice to a Minister (decision or information memo), quite another to research. Questionable ethics for all involved, and hopefully the current Government will deliver on its commitment to greater openness:

A program that allows international students to work in Canada after graduation is creating a low-wage work force, encouraging low-quality postsecondary programs, and needs to be redesigned, says an internal report from Citizenship and Immigration Canada.

Under the Post-Graduation Work Permit Program international students with degrees from Canadian colleges and universities can work here for up to three years after their programs end. Between 50 per cent and 60 per cent of eligible international students applied for a work permit, the report says, with more than 70,000 people holding permits in 2014.

The program is designed to make Canadian postsecondary institutions an attractive destination and to give international students work experience, making it easier to apply for permanent residence.

But the 35-page report found that the majority of those employed through a work permit are in low-skilled jobs in the service sector, and have median earnings that are less than half of other recent university and college graduates.

“Facilitating this large pool of temporary labour, largely in low-paid positions, may be in conflict with the objectives of the Putting Canadians First strategy,” the report states.

That strategy was initiated by the former Conservative government to prioritize employment for Canadians after abuses of the temporary-foreign-worker program came to light. The Post-Graduation Work Permit (PGWP) report was commissioned as part of a larger review of temporary-foreign-worker policies.

The Globe and Mail obtained the report after a nine-month battle. The government initially refused the request. After an appeal to the Information Commissioner of Canada and discussions between the commissioner, Citizenship and Immigration Canada and the newspaper, the government provided a partly redacted version of the report.

Marked “secret,” the report reviews six years of the work-permit program, from 2008 to 2014. It raises many questions about how Canada attracts international students and how they transition to citizenship.

Its findings are likely to complicate the recently announced review of how the new Express Entry immigration system is treating international students who want to become permanent residents. Express Entry, introduced in January, 2015, does not award applicants any extra points for studying in Canada, as had been the case under a prior immigration program for international students. As a result, it has been heavily criticized for making it much harder for international students to become permanent residents.

Earlier this month, John McCallum, Minister of Citizenship and Immigration, said the government is launching a federal-provincial task force to look at how Express Entry can better serve this group.

“International students have been shortchanged by the Express Entry system,” he said at the time. “They are the cream of the crop in terms of potential future Canadians …”

The PGWP report, however, suggests that most international students’ investment in a Canadian education is not being rewarded by the labour market.

International students with a work permit had median earnings of $19,291 in 2010, compared with about $41,600 for 2013 domestic college graduates and $53,000 for Canadian university grads, according to the review.

Source: International-student work program needs overhaul, report says – The Globe and Mail

Ottawa looks to ease international students’ path to permanent residency

Appears that the government has heard these entreaties, as well as believing in the policy merits of encouraging a pathway to permanent residency and citizenship for students, with changes to Express Entry expected:

The Liberal government is moving to make it easier for international students to become permanent residents once they have graduated from Canadian postsecondary institutions.

Immigration Minister John McCallum said he intends to launch federal-provincial talks to reform the current Express Entry program, a computerized system that serves as a matchmaking service between employers and foreign skilled workers. Thousands of international students have been rejected for permanent residency because the program favours prospective skilled workers from abroad.

“We must do more to attract students to this country as permanent residents,” Mr. McCallum told reporters after meeting with his provincial and territorial counterparts Monday. “International students have been shortchanged by the Express Entry system. They are the cream of the crop in terms of potential future Canadians and so I certainly would like to work with my provincial and territorial colleagues to improve that.”

Mr. McCallum said international students are ideal immigrants and should be recruited by Canada.

“I believe international students are among the most fertile source of new immigrants for Canada. By definition, they are educated. They speak English or French,” said the minister.

“They know something about the country, so they should be first on our list of people who we court to come to Canada,” he minister.

International students have been uncertain about whether they will be able to stay in Canada after they finish their studies since the former Conservative government introduced the Express Entry system on Jan. 1, 2015. Prior to that, they had a clear path to permanent residency.

To be able to apply for permanent residence under Express Entry, however, graduates have to reach a certain number of points, with levels changing from month to month. Those with the highest points in any given month are more likely to be successful.

Evan Green, a Toronto immigration lawyer who has helped international students apply for permanent residence, was cautious about the promise to adjust how applications are processed.

The government is projecting fewer economic applicants overall, and so international students may face more competition for the available spots.

“The target for 2015 was 181,300 in the economic class and this year it’s 160,600,” he said.

Still, a few simple adjustments could make it easier for international students to settle in Canada, he said. Giving graduates specific points for education and work experience in this country would be a start. That’s how the prior system worked.

“You had people who paid for their own education, had Canadian work experience, they’re pretty good immigrants,” he said. “They could adjust it so that work experience on your postgrad work permit could be worth more.”

Making the system easier to navigate is crucial to Canada’s economy and its universities, said Paul Davidson, the president of Universities Canada. International students contribute in excess of $10-billion in GDP to the economy, more than wheat and more than softwood lumber, he said.

“It’s a global competition,” he said. “Being able to offer a commitment that students can stay here after they graduate is part of the pitch Canadian universities make to attract top talent.”

Source: Ottawa looks to ease international students’ path to permanent residency – The Globe and Mail

Canada’s hardest-hit economies need immigration to thrive again: Moffat

Mike Moffat on the need to remove the need for a Labour Market Impact Assessment for graduates of Canadian universities in Express Entry point scoring (another issue is to restored pre-Permanent Resident credit towards citizenship residency requirements for international students as was done prior to the 2014 changes in the Citizenship Act):

So how can London, Windsor, St. Catharines et. al. increase their population of talented twentysomethings? The region does an excellent job of importing talent as our institutes of higher education are worldwide magnets for young achievers. In London, Western and Fanshawe bring in some of the most gifted students in the world, teach them skills highly in demand in the region while they become familiar with Canadian culture. We then allow these graduates to stay in the country for a period of up to three years via Canada’sPost-Graduation Work Permit Program(PGWPP); tech companies Darren Meister, Kadie Ward and I interviewed in London told me how incredibly valuable these workers are.

They also told us that, despite these workers having graduated in Canada and being in the country around seven years, the Federal government makes it difficult (and some cases impossible) to keep them in the country. They are sent back home, and London has fewer talented young workers.

The issue stems, in part, from year-old changes to Canada’s express entry system which makes it impossible for someone in the PGWPP program to gain express entry without a Labour Market Impact Assessment, as chronicled by Nicholas Keung:

“The problem, which the federal government denies, lies in the significance given to a certificate called the Labour Market Impact Assessment (LMIA). It is issued by Ottawa to ensure a candidate’s skills are sufficiently in demand to warrant hiring an immigrant.

Ottawa says applicants for Express Entry, such as international graduates, do not need an LMIA to qualify. But Express Entry acceptance is based on a point system and it’s not possible to earn enough points without an LMIA, immigration experts say.

“The new system is flawed,” said Toronto immigration lawyer Shoshana Green. “We want people who went to school and have work experience in Canada. These people are already fully integrated. And now we are ignoring them. It is just bizarre.””

The process to obtain a LMIA is arduous for smaller growth companies, and navigating it can be difficult, as immigration lawyerRonalee Carey describes:

“Last month I sent a young woman back to Japan. She’d come to Canada as an international student first to finish high school, then to attend Sheridan College in their Animation Program. Her employer consulted me after their Labour Market Impact Assessment (LMIA), because her position was denied. They had been paying her the median wage for Ontario, as opposed to Ottawa, which was slightly higher. Meanwhile, they had no idea there were median wages specific to Ottawa. They offered her a raise and resubmitted the LMIA application.”

But it was too late.

The young woman had been working on a post-graduate work permit. It had expired, and she’d applied for an extension. However, a positive LMIA was required for the extension. Ultimately, her work permit application was denied, because the new LMIA application had not yet been processed.

And so on the plane she went.

These stories are all too common according to the tech firms I have spoken to. In order to obtain an LMIA, one must prove to the federal government that “there is a need for the foreign worker to fill the job you are offering and that there is no Canadian worker available to do the job.” Not only does this place a large burden on growth companies to convince a bureaucrat about the lack of Canadians for the position, it is also completely counterproductive for communities where there is a desperate need for young talent. Furthermore, it may be impossible for these companies to prove this point to the government’s satisfaction. As immigration lawyer Evan Green asked the Globe and Mail, “…how do you prove for someone with [little] work experience that there is no Canadian to do the job?”

Southwestern Ontario is desperate for economic growth from startups. Startups are desperate for these talented workers. These workers are desperate to stay in Canada. Yet we are kicking them out. It makes absolutely no sense. If the federal government truly wants to help London and the rest of southwestern Ontario, the place to start is to recognize the region needs talented young people and to reform the Express Entry system to allow us to keep more of our graduates.

Source: Canada’s hardest-hit economies need immigration to thrive again

New rules make it ‘nearly impossible’ for employers to keep foreign graduates on staff

The Liberal government will likely look at this issue as part of reviewing the overall Express Entry point system, along additional points for family siblings and restoration of pre-Permanent Resident time credit:

When Jorge Amigo chose to come to Canada for university, he hadn’t expected to want to spend his life here.

“My decision to come here as a student had nothing to do with immigration,” says Mr. Amigo, 33, who’s from Mexico City. “But after living here for a few months, I realized I loved this place and I wanted to stay.”

Before Ottawa’s points-based Express Entry system was introduced on Jan. 1, international students with a year of Canadian skilled work experience were almost guaranteed to stay by getting permanent residency under the Canadian Experience Class (CEC). But with the change, Mr. Amigo – who has bachelor’s and master’s degrees from the University of British Columbia, an impressive post-graduate résumé and a job with a booming Vancouver-based tech company – fears he may have to leave when his work permit expires in June.

With the new system, it’s nearly impossible for most international student graduates such as Mr. Amigo to get permanent residency under Express Entry – unless their employers can prove that no Canadians can do the job, immigration lawyers say.

“Tens of thousands of students are now heartbroken, stressed and don’t know what to do with their lives because they were misled by the government,” says Vancouver immigration lawyer Zool Suleman. “Employers are looking to lose a group of well-educated students who would be a benefit to the labour market.”

The online system, intended to eliminate a massive backlog of immigration applications from outside of Canada, now makes students compete in a points-based system with everyone else trying to get permanent residency.

“They shouldn’t have included [the CEC] in the Express Entry system because there never was a backlog with it – they never even met their quotas,” says Matthew Jeffrey, an immigration lawyer in Toronto. “These are the ideal immigrants because they’re educated in Canada and they have skilled work experience in Canada and they usually still have that job – they hit the ground running.”

Under Express Entry, applicants get points for education, age, work experience and their skills in English and French. If an applicant’s points are over the minimum score set by the government, they’re invited in.

“The problem for people who came in as students is they can’t rank very highly in the pool,” Mr. Jeffery says, a Toronto immigration lawyer. “They’re young and they only have a year or two of work experience, so their score from the beginning is going to be low.”

Source: New rules make it ‘nearly impossible’ for employers to keep foreign graduates on staff – The Globe and Mail

U.K. immigration crackdown could hit 6,000 Canadian students

Strange – the worry about fraud undermines a pathway to skilled immigrants (cancellation of pre-Permanent Resident credit in Canada towards citizenship residency requirements, while not as strong as UK measures, will likely reduce attractiveness of Canada as a destination):

British Home Secretary Theresa May has announced a wave of changes to the United Kingdom’s immigration rules, effective in November, that target international students.

The aim is to curb what the government calls an increase in visa fraud by students who arrive on a study permit and enter the job market instead, thereby bypassing the strict requirements needed to obtain a legal work visa.

It’s the latest in a series of crackdowns by Prime Minister David Cameron’s government, which has promised to reduce annual net migration to the U.K. from “hundreds of thousands to tens of thousands.”

The U.K. is one of the most popular places for Canadians to study abroad, second only to the U.S. For the 2013-14 academic year, there were more than 6,000 Canadian students enrolled at higher education institutions in the U.K., a three per cent increase from 2012, according to Britain’s Higher Education Statistics Agency.

Like Hirschy, many of these students hope to stay and work, but the new legislation will make this more difficult.

U.K. immigration crackdown could hit 6,000 Canadian students – Canada – CBC News.

Foreign students left behind in new Express Entry immigration program | Toronto Star

Oversight or by design? Metropolis Panel on Temporary Foreign Workers March 27 will have opportunity to discuss:

International graduates from Canadian universities and colleges say Ottawa’s new skilled immigration system actually hinders their access to permanent residency instead of promoting it.

The scholars say their once-prized assets — Canadian education credentials and post-graduate work experience — have little to no value under the new Express Entry program, which came into effect Jan. 1.

The problem, which the federal government denies, lies in the significance given to a certificate called the Labour Market Impact Assessment (LMIA). It is issued by Ottawa to ensure a candidate’s skills are sufficiently in demand to warrant hiring an immigrant.

Ottawa says applicants for Express Entry, such as international graduates, do not need an LMIA to qualify. But Express Entry acceptance is based on a point system and it’s not possible to earn enough points without an LMIA, immigration experts say.

“The new system is flawed,” said Toronto immigration lawyer Shoshana Green. “We want people who went to school and have work experience in Canada. These people are already fully integrated. And now we are ignoring them. It is just bizarre.”

Under the Express Entry system, an applicant may earn a maximum of 1,200 points. An LMIA automatically earns applicants 600 points. The other 600 possible points are awarded for personal attributes such as education, language skills and work experience.

How many points does it take to qualify for Express Entry? It changes. So far it has been as high as 886, and has dropped to 735 points. Regardless, the qualifying level is more than 600, so an LMIA is necessary.

Foreign students left behind in new Express Entry immigration program | Toronto Star.

Also covered in the Globe:

International students in limbo under immigration system changes – The Globe and Mail

New immigration rules risk leaving international students behind

Curious and wonder what the rationale was:

“Students are the worst done by in this Express Entry system because, how do you prove for someone with [little] work experience that there is no Canadian to do the job?” said Evan Green, a partner and immigration lawyer at Green and Spiegel LLP in Toronto.

Students are still able to apply for permanent residence through other avenues, such as provincial nominee programs (PNP), which prioritize applications from international students with Canadian postsecondary credentials and professional work experience. The majority of Ontario’s 2,500 PNP spots are filled by international students, for example.

But tens of thousands of students have stayed in Canada as a result of the federal program, and those spots cannot be transferred to the provinces without negotiations.

The changes to how applications from those eligible under the Canadian Experience Class would be processed were announced last winter but the exact details were only released by Citizenship and Immigration Minister Chris Alexander in early December.

“This is a radical move that is devastating to international students that relied on policies that were put into place by this government to help post-graduate international students transition to permanent residence, based on their findings that these were the best people to adapt to life in Canada,” said Robin Seligman, a Toronto-based lawyer who has international student clients.

Along with removing credit for students for pre-permanent residency time for citizenship, likely reduces the attractiveness of Canada compared to other jurisdictions.

New immigration rules risk leaving international students behind – The Globe and Mail.

Changing citizenship rule could hurt Canada’s efforts to woo foreign students: observers

Ironic, as the Government has been innovative in attracting foreign students through new categories like the Canadian Experience Class, that no longer counting time as a non-permanent resident student is part of the proposed Citizenship Act revisions. Unclear whether this will have much direct impact on recruitment efforts for international students but that is the fear:

The change is raising some eyebrows as it creates a potential hurdle for those who typically make well-integrated, sought-after immigrants.

“Increasingly international students are seen as a fabulous talent pool for Canada, they’re golden immigrants,” said Jennifer Humphries, a vice-president at the Canadian Bureau for International Education.

“They can be huge contributors to the Canadian society, Canadian economy. If we create roadblocks to them, what will happen could mean that they could get their education in Canada and end up going to work in the U.S.”

Changing citizenship rule could hurt Canada’s efforts to woo foreign students: observers – Canada, Need to know, News & Politics – Macleans.ca.