Should Ottawa prioritize immigrants with STEM qualifications?

'They should adopt a smarter system that courts skilled workers who can enhance the economy,' say experts citing faults of focus on temporary foreign workers

Should Ottawa prioritize immigrants with STEM qualifications?

Welcoming highly skilled immigrants should be the federal government’s prime focus in its immigration policy, according to two experts.

The federal government should reform its immigration system and prioritize immigrants with STEM (science, technology, engineering and mathematics) qualifications and strong English or French language skills to help increase living standards for Canadians, two experts from Fraser Institute say in an essay.

"The primary focus of sensible immigration policy should be to attract newcomers who will help increase the living standards of people already living in Canada," said Jock Finlayson, senior fellow at the Fraser Institute.

Finlayson – along with Steven Globerman, senior fellow at the Fraser Institute – claims that highly-educated and/or skilled immigrants –particularly those trained in STEM-related subjects – will help increase the productivity and per-person GDP (an indicator of living standards and incomes) of existing residents.

These immigrants also contribute more to government revenue (via taxes) than they receive in government services and income transfers (e.g. employment insurance), they say.

Previously, the Quebec Ministry of Immigration, Francisation and Integration (MIFI) announced a shift in its immigration strategy with the implementation of the new Skilled Worker Selection Program (PSTQ).

Governments in Canada should also improve the business environment for entrepreneurship, innovation and growth of technology-intensive industries and occupations, to reap more benefits from high-skilled immigrants.

"If policymakers in Ottawa and across the country want to make Canada's immigration system work better for Canadians, they should adopt a smarter system that courts skilled workers who can enhance the economy," says Globerman.

A previous report by the C.D. Howe Institute highlights persistent overqualification among skilled immigrants in Canada, which undermines their economic potential and hinders the country’s labor market productivity.

Immigration and retirement

Finlayson and Globerman also criticize the overall direction of Canada’s immigration policies, including annual targets and selection criteria for permanent and temporary newcomers.

Ottawa’s immigration policy operates under the assumption that ramping up immigration –since 2015 – is key to addressing that an aging population brings. Specifically, these immigrants will both “replace” retiring workers and keep the country’s economy growing, they say.

However, this has a negative impact on Canada’s image as an immigration destination, they say in the essay titled Insights to Guide Immigration Policy.

“The most obvious problem with this argument is that it overlooks the reality that any cohort of immigrants will eventually also age into retirement, assuming they remain in Canada. It follows that if immigration is the main instrument policymakers rely on to fund social and other programs, they will be obliged to legislate serial increases in the number of newcomers in order to finance the retirements of preceding immigrant cohorts.

“This will become unsustainable at some point, as later cohorts of potential immigrants come to suspect that the future population growth required to support them in retirement might not materialize or be feasible, thus making Canada a less attractive immigration destination.”

Addressing temporary foreign workers

The Fraser Institute experts also recommend reducing the number of “temporary” immigrants admitted to Canada under the various international student and temporary foreign worker programs.

They note that the federal government has now started to do this, but only after “allowing these programs to run essentially ‘out of control’ over the last few years,” they say.

“Since 2021, non-permanent immigrants have greatly outnumbered new permanent immigrants; in our view, it is time to move back to the pre-2020 balance between temporary and permanent newcomers.

“At the same time, we believe international student selection should be re-oriented to target students who enroll in and complete programs that lead to high-paying jobs and careers, rather than programs that graduate individuals who – if they stay in Canada – typically end up in low-productivity jobs in relatively low-paying industries.”

Previously, Ottawa agreed to give new work permits to up to 215 temporary workers identified and supported by the Yukon government to continue working while they process their permanent residence applications under the Yukon Nominee Program.