The recent changes to the H-1B visa program in the United States could present a significant opportunity for Canada. As President Donald Trump raises the application fee for this popular skilled worker visa, experts and legal professionals are urging Canada to take advantage of this moment and welcome skilled workers seeking new opportunities.
However, it’s important to note that Canada’s immigration system is not without its own hurdles. While many are looking northward as a viable alternative, there are complexities that potential immigrants should be aware of.
Canadian Prime Minister Mark Carney seems to be attuned to the call for attracting and retaining the talented individuals who may be displaced by the recent changes to the H-1B visa. In a speech delivered on Monday to the Council on Foreign Relations in New York City, he emphasized the impressive research and artificial intelligence talent that Canada has cultivated, while lamenting that "unfortunately, most of them go to the US." He added, "I understand you're changing your visa policy. Maybe we can hang on to one or two of them."
The announcement made by Trump last week, which imposes a staggering fee of $100,000 (£74,000) for new H-1B applications, has left many in the tech industry reeling. This program has been a crucial pathway for companies to legally employ foreign workers in the US, including a notable number of Canadians—who represented 1% of all H-1B applicants in 2019, according to US statistics.
While the White House has assured that current H-1B visa holders will not be impacted by this fee increase, the changes are expected to create significant barriers for highly educated foreigners seeking employment in the US. Experts predict that recent international graduates from US universities, who had aspirations of staying and working in the country long-term, will be among the hardest hit.
With many of these skilled workers now exploring options outside the US, immigration lawyer Evan Green from Canada views this as "a wonderful opportunity for the Canadian government to take advantage of." He is not alone in this sentiment. The non-profit organization Build Canada, which focuses on enhancing the nation’s productivity, released a memo on Monday urging swift action from the Canadian government. The memo stated, "Hundreds of thousands of highly skilled and highly paid H-1B professionals are now seeking a new home," and highlighted Canada’s world-class research institutions, similar time zones, proximity to the US, and high quality of life as compelling reasons for these workers to consider Canada.
A study conducted in 2020 for the National Bureau of Economic Research revealed that when faced with restrictions on skilled worker immigration in the US, multinational companies often sought to retain talent by hiring abroad, particularly in countries like India, China, and Canada. This research, carried out by scholars at the University of Pennsylvania, examined the 2004 H-1B restrictions that reduced the visa cap by 70%. It found that companies were still able to hire the skilled immigrants they initially wanted in the US, but instead, they turned to Canada due to its more open immigration policies at the time.
There is also evidence that H-1B visa holders have been considering Canada as a potential alternative. In 2023, the Canadian government launched a program allowing US-based H-1B holders to apply for a three-year work permit in Canada. This initiative saw applications close within just 24 hours after 10,000 individuals signed up.
While it remains uncertain how many of these applicants ultimately relocated to Canada, Calgary-based lawyer Mark Holthe noted that some of his clients did make the move after their H-1B visas were not renewed. "These individuals didn't have another alternative," he explained, although he also pointed out that many newcomers are now facing challenges in securing permanent residency, which leaves their long-term status in Canada uncertain.
Economist Mikal Skuterud has cautioned that Canada must do more to enhance its appeal as a destination for skilled workers, including a comprehensive overhaul of its immigration system. "There is potential for Canada, for sure, but we shouldn't overstate what that potential is," said Skuterud, who teaches at the University of Waterloo in Ontario. He noted that Canada has reduced immigration levels in recent years, and a political debate is brewing over the temporary foreign worker program, with the Conservative opposition advocating for its elimination in favor of prioritizing Canadian hires. This program is intended to fill labor shortages in various industries and typically attracts lower-skilled or seasonal workers.
"Canada does not appear significantly more predictable than the US," Skuterud remarked, highlighting a key issue for attracting talent. Additionally, he pointed out that Canada does not offer the same salary levels as the US, with average wages generally being lower.
Nevertheless, Skuterud emphasized that this should not deter Canada from making an effort. He noted that the H-1B program has historically contributed to substantial economic growth in the US, particularly in research and innovation within high-tech sectors.
While a spokesperson from the Immigration, Refugees and Citizenship Canada (IRCC) declined to comment specifically on the changes to the H-1B visa in the US, they did mention various pathways available for employers to bring skilled workers into Canada, such as the Express Entry program for skilled workers and the Global Skills Strategy program, which facilitates expedited processing of temporary work permits for highly skilled foreigners. Spokesperson Matthew Krupovich added that the IRCC is continuously working to identify new strategies to attract the world’s brightest and most talented individuals.
