Canada's immigration system needs a reset: report

HR professionals who recruit internationally should review their talent pipelines now, because a new RBC Thought Leadership report warns that Canada's immigration system has "lost its edge" and faces continued volatility that could disrupt hiring plans for skilled newcomers.

The report, A Smarter Immigration Strategy, was authored by RBC's Jackie Pichette, Policy Lead for Skills & Higher Education, alongside economist Farhad Panahov and design lead Caprice Biasoni. It draws on consultations with more than 60 economists, demographers and policy makers over six months.

RBC found Canada admitted roughly three million migrants between 2022 and 2024 — about a decade's worth of immigration in three years — driven mainly by lower-skilled temporary residents. Per capita GDP fell for two consecutive years, and Canada's population later declined for the first time in modern history.

Pichette's report says more than 25 rule changes affected international students in roughly two years, contributing to unpredictability that employers must navigate when sponsoring foreign talent.

Express Entry and skills gaps

RBC's report identifies Express Entry, the federal points-based system, as central to the problem. Sub-categories added in 2022 allow lower-scoring applicants in targeted occupations to be admitted ahead of higher scorers, with the Canadian Experience Class now requiring "over 100 points more, on average, than it does through other categories."

This matters to HR teams because employers sponsoring candidates outside priority occupations may face longer waits, even as overall program standards have loosened, RBC found. The Express Entry cut-off score fell from the mid-400s before the pandemic to as low as 75 in 2021.

Provincial Nominee Programs, meanwhile, have grown to roughly 80 pathways nationally, RBC reports. Retention outcomes vary widely, from 39% in Prince Edward Island to about 94% in Ontario and Alberta for newcomers landing between 2010 and 2015 — a gap employers recruiting for regional roles should factor into retention planning.

Data gaps and reecommendations

RBC's report also flags weak data as a barrier to policy stability. Canada's Longitudinal Immigration Database carries a two-year reporting lag, compared with three months in New Zealand, the report says.

A 2026 federal auditor general report cited in RBC's findings said Immigration, Refugees and Citizenship Canada "did not know whether students were leaving Canada after their permits expired," with departures confirmed for only about 40% of nearly 40,000 expired study permits.

RBC recommends a stable population growth target near 1%, restoring Express Entry's points-based focus, consolidating provincial categories, and advancing faster data reporting through the ePayroll project. Pichette's report frames these steps as necessary to restore Canada's reputation as a predictable destination for skilled workers — a reputation HR professionals depend on when making long-term international recruitment commitments.

Canadian HR professionals looking to strengthen their international recruitment strategy can draw on a growing body of research from thinktanks, government evaluators and employer coalitions that points to five concrete actions — summarized below with the data and sources behind each.

Canada could significantly expand its workforce by removing barriers that prevent internationally trained professionals from working in their fields, according to a previous report by the Institute for Canadian Citizenship (ICC).

Here's how HR can maximize the current immigration system, according to different sources: