Permanent Residence Class Proposed For Semi-Skilled Workers

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

The department states that this pathway will “support the modernization of the economic immigration system by expanding the selection of permanent residents to candidates with a more diverse range of skills and experience.”

According to IRCC, ministerial instructions with more details about the new class and its pathways will be released this fall in the Canada Gazette.

Canada’s TEER System

Canada’s TEER system was introduced in 2022 as part of the evolution of the National Occupation Classification (NOC) system. This system categorizes occupations into TEER levels, replacing the "Skill Levels" used in NOC 2016.

• TEERs 0-3: Occupations typically require post-secondary education or an apprenticeship of a specific length.
• TEERs 4 and 5: Occupations that need only a high school education, on-the-job training, or, in the case of TEER 5, no formal education but some short-term work demonstration.

TEERs 4 and 5 are generally not eligible for federal economic immigration programs such as those managed by Express Entry. As a result, newcomers who work in these occupations often face more difficulties becoming permanent residents, adding to Canada’s temporary resident population.

Many newcomers to Canada arrive as temporary residents and, due to the current labor market, some find themselves in what Statistics Canada defines as "low-skilled" positions. A study released this year by Statistics Canada noted "a shift in the employment of temporary foreign workers (TFWs) and international students toward low-skilled industrial sectors, including accommodation and food services and retail trade."

The study also mentioned that "these shifts could potentially result in a higher proportion of low-skilled TFWs among new immigrants."

This trend means that TFWs and international students are impacted by low earnings and slow earnings growth, which delays their integration into Canada’s economy.

Temporary Resident Levels

Creating new permanent resident pathways for TEER 4 and 5 newcomers exemplifies IRCC’s efforts to reduce the number of temporary residents in Canada. Earlier this year, the department announced its intention to stabilize these numbers, which peaked at over 2 million in 2023.

The department stated that these levels were unsustainable for Canada’s economy. According to Immigration Minister Marc Miller, Canada has recovered 138% of the jobs lost during the COVID-19 pandemic.

Traditionally, temporary residents—such as workers, students, and visitors—have not been subject to caps. However, this year, IRCC reversed this policy and implemented a hard cap on the number of international student applications it will process. Additionally, temporary resident levels are being added to the 2025-2027 Immigration Levels Plan, expected to be released by November 1.

IRCC plans to further reduce the number of temporary residents by increasing the number of “domestic draws.” This approach focuses on converting temporary residents already living in Canada into permanent residents before bringing in more foreign nationals from overseas.

Recently, there has been an increase in the number of Express Entry draws for candidates with a provincial nomination and those in the Canadian Experience Class. Typically, these applicants are already living and working in Canada as temporary residents. In July alone, IRCC issued 14,575 invitations to apply to these candidates.

These measures help IRCC achieve its annual target for permanent residents while also reducing the temporary resident population.

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