Canada Must Prioritize Immigrants with STEM Skills and Language Proficiency, Study Says

The federal government must refine its immigration policies to emphasize attracting highly skilled immigrants with STEM (science, technology, engineering, and mathematics) qualifications and proficiency in either English or French. This strategy is essential for bolstering Canada’s economic performance and ensuring its citizens’ higher standard of living.

On This Page You Will Find:

• Why Canada should prioritize immigrants with STEM qualifications and language proficiency.
• Key findings from the Fraser Institute’s essay, Insights to Guide Immigration Policy.
• The economic benefits of skilled immigration, including productivity and innovation growth.
• Challenges faced by STEM-trained immigrants and recommendations to address them.
• Insights into Provincial Nominee Programs and their role in attracting STEM professionals.

A recent essay by the Fraser Institute, titled Insights to Guide Immigration Policy, underscores the significant benefits of prioritizing highly educated immigrants, particularly those trained in STEM fields. This focus aligns with the need to foster innovation, improve productivity, and address pressing economic challenges while ensuring immigrants contribute positively to public finances.

Economic Growth

Highly skilled immigrants in STEM disciplines are critical to Canada’s economic success. They contribute to increased productivity, higher per-person GDP, and key living standards and income indicators. Moreover, such immigrants typically pay more taxes than they consume in public services and social benefits, such as employment insurance.

However, to fully realize the potential of high-skilled immigration, Canada must also create a favourable business environment. By encouraging entrepreneurship, innovation, and the growth of technology-intensive industries, the government can harness the full benefits of skilled immigrants, ensuring they are integrated into sectors that drive economic growth.

Immigration Surge

The recent surge in immigration has sparked debate over appropriate annual targets and selection criteria. While a growing workforce can help address Canada’s aging population and sustain economic growth, there are concerns about labour productivity, housing affordability, and living standards.

The essay cautions against an over-reliance on immigration to fund social programs, as each cohort of immigrants eventually ages and requires support. A policy that merely increases numbers without focusing on skills risks reducing labour productivity and creating economic inefficiencies.

STEM-Focused Immigration

Prioritizing STEM qualifications is more likely to lead to:

1. Increase in Productivity: STEM-trained professionals often work in fields that drive technological advancements and innovation, boosting the productivity of existing residents.
2. Strengthening of Public Finances: With higher earning potential, STEM immigrants contribute significantly to the tax base while consuming fewer public resources.
3. Fostering Innovation: Many STEM professionals become entrepreneurs or leaders in technology-intensive industries, creating jobs and spurring economic growth.

Among the in-demand STEM occupations in Canada are:

• Software Developers
• Chemical Engineers
• Data Scientists
• Cybersecurity Specialists
• Machine Learning Engineers
• Biomedical Engineers

For example, a software developer earns an average annual salary of CAD 119,845.33, while a waste management specialist earns CAD 154,198.71. These high salaries underscore the value of STEM professionals in Canada’s economy.

Addressing the Temporary Immigration Imbalance

In recent years, the number of temporary immigrants—such as international students and temporary foreign workers—has surged, outnumbering new permanent residents since 2021. While these programs address short-term labour shortages, they often lead to lower productivity and create challenges in integrating temporary workers into the economy.

The Fraser Institute recommends reducing temporary immigration levels and reorienting international student selection to focus on those pursuing high-demand, high-paying careers over those in fields that lead to low-productivity jobs.

Provincial Nominee Programs

Canada’s Provincial Nominee Programs (PNPs) are vital in tailoring immigration to meet local labour market needs. Fast-tracking applications for STEM professionals under PNPs could ensure that provinces benefit from skilled workers in artificial intelligence, healthcare technologies, and environmental engineering.

Challenges and Recommendations

Despite their potential, STEM-trained immigrants in Canada often underperform compared to their counterparts in the United States. This discrepancy may stem from barriers such as credential recognition, limited job opportunities, and insufficient integration programs.

According to the paper, to address some of the issues, policymakers should:

1. Enhance Credential Recognition: Streamline processes for recognizing foreign qualifications and provide bridging programs to help immigrants adapt to the Canadian workforce.
2. Support Integration: Develop mentorship programs, networking opportunities, and language training to help newcomers transition smoothly into their fields.
3. Foster a Thriving Tech Ecosystem: Invest in research and development, support startups, and incentivize companies to hire skilled immigrants in high-growth industries.

Long-Term Implications

The success of Canada’s immigration system depends on its ability to balance short-term needs with long-term economic goals. By prioritizing STEM professionals, the government can ensure that immigrants contribute meaningfully to productivity, innovation, and public finances.

However, a comprehensive approach is needed. Policymakers must address systemic issues such as housing supply, infrastructure development, and access to education and training. Additionally, reducing reliance on temporary immigration and focusing on high-skilled permanent residents will create a more sustainable immigration framework.

Canada has long been known for its focus on innovation and for welcoming immigrants seeking opportunities and a better quality of life. By reforming its immigration system to prioritize STEM qualifications and language skills, the federal government can enhance the well-being of existing residents while fostering a dynamic, innovation-driven economy.

These reforms will position the country to benefit from higher productivity, stronger public finances, and a more competitive global position. The paper concludes that with thoughtful planning and targeted initiatives, Canada can ensure that immigration continues to be a cornerstone of its prosperity.

FAQ: Canada’s Focus on STEM-Qualified Immigrants