Immigration, Refugees and Citizenship Canada (IRCC) has proposed an amendment to the Immigration and Refugees Protection Act (IRPA) to create a new permanent economic immigration class for workers with experience and training at Training, Education, Experience, and Responsibilities (TEER) levels 4 and 5.

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The department states that this new pathway aims to modernize the economic immigration system by broadening the selection of permanent residents to include candidates with a wider range of skills and experiences.

IRCC has indicated that ministerial instructions with further details about this new class and its pathways will be published in the Canada Gazette this fall.

Canada’s TEER system

Canada’s TEER system was introduced in 2022 as part of the update to the National Occupation Classification (NOC) system, replacing the previous “Skill Levels” from NOC 2016.

The TEER system categorizes occupations into levels 0-3 and 4-5. TEERs 0-3 generally require post-secondary education or an apprenticeship, while TEERs 4 and 5 cover occupations that require only a high school education or on-the-job training, with TEER 5 including positions that need no formal education but may require short-term on-the-job experience.

Currently, TEERs 4 and 5 are not typically eligible for federal economic immigration programs like Express Entry. As a result, newcomers working in these occupations often face challenges in becoming permanent residents, leading to an increase in temporary residents in Canada.

Statistics Canada reports that many newcomers arrive as temporary residents and, due to the current labor market, often find themselves in what is defined as “low-skilled” positions. A recent study highlighted a shift in the employment of temporary foreign workers (TFWs) and international students towards low-skilled sectors such as accommodation, food services, and retail trade.

This shift could lead to a higher proportion of low-skilled TFWs among new immigrants, affecting their earnings and delaying their integration into Canada’s economy.

Temporary resident

The introduction of new permanent resident pathways for TEER 4 and 5 newcomers reflects IRCC’s ongoing effort to reduce the number of temporary residents in Canada. Earlier this year, the department announced its aim to stabilize these numbers, which reached over 2 million in 2023.

The department has stated that the current levels of temporary residents are no longer sustainable 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 were no caps on temporary residents, including workers, students, and visitors. However, this year IRCC has reversed this policy by imposing a hard cap on the number of international student applications it will process. Additionally, it plans to include temporary resident levels in the 2025-2027 Immigration Levels Plan, which is expected to be released by November 1.

IRCC also aims to reduce the number of temporary residents by increasing “domestic draws,” focusing on making temporary residents already living in Canada permanent before considering new foreign nationals. Recently, there has been a rise in Express Entry draws for candidates with provincial nominations and those under the Canadian Experience Class, who are typically already residing and working in Canada. In July alone, IRCC issued 14,575 invitations to these candidates.

These measures aim to help IRCC meet its annual permanent resident targets for this year and the next, while also reducing the number of temporary residents.