Skilled workers shown the door

Yes, there’s a “labour shortage”—and it doesn’t help that thousands of highly skilled immigrants might be leaving the country. 

Driving the news: Experts say tens of thousands of skilled immigrants are waiting in limbo to get approved for permanent resident status. They may have to leave the country if their temporary work permits expire before it happens, per The Globe and Mail.

Why it’s happening: During the pandemic, the federal government—facing a steep shortfall of newcomers—loosened requirements for people applying to become permanent residents. 

  • It worked, and Canada hit its immigration target for 2021, but that produced an avalanche of paperwork and a processing backlog that still hasn’t been cleared.

  • Now newcomers who would normally breeze through the process are stuck waiting for their applications to be processed, as their work visas inch closer to expiry.

Why it matters: Canada’s economic growth depends heavily on robust immigration and finding skilled newcomers to fill jobs, which is even more urgent as today’s low unemployment and record-high job vacancies continue to plague a number of industries.

  • The rising cost of living and unaffordable housing has 30% of young, skilled immigrants considering leaving the country in the next two years anyway.

What’s next: The government has offered some extensions for expiring work permits, but it’s difficult to see how Canada will hit its target of 1.2 million new permanent residents by the end of 2023 without first clearing a backlog that’s causing the system to break down.