Backgrounders - Federal Skilled Worker Evaluation Highlights

The federal skilled worker evaluation looked at skilled workers admitted to Canada between 2002 and 2008, and used statistical analysis of taxation data to compare the economic outcomes of skilled workers selected both before and after the implementation of the Immigration and Refugee Protection Act (IRPA) in 2002.

The selection system under IRPA looks at the worker’s overall capacity to adapt to Canada’s labour market and awards points for a range of factors, including official language ability, education, work experience, age and whether they have a job already arranged in Canada. Under the former selection system, language ability was considerably less important and there was also less emphasis on education and arranged employment.

Rigorous methodology

The comprehensive evaluation included interviews, surveys of skilled workers and employers, case studies, document and literature research, and statistical analyses of three different databases. A significant sample of over 1,800 individuals from various stakeholder groups provided their perspective and input.

Strong economic outcomes

• Eighty-nine percent of federal skilled workers selected under IRPA were employed or self-employed three years after arriving. Employment earnings for these federal skilled workers increase over time, from $34,000–$40,600 one year after arriving to $46,000–$53,300 three years after arriving. (p. 30)
• Ninety-five percent of the employers surveyed for the evaluation indicated that federal skilled workers were meeting or exceeding their expectations. Further, most employers (63%) had found it difficult to fill the position for which the federal skilled worker was eventually hired. (p. 34)
• The average employment earnings for federal skilled workers with arranged employment were $79,200 three years after landing, compared to $44,200 for those without. In addition, the survey indicates that federal skilled workers with arranged employment are more likely to still be working for their first employer in Canada. (pp. 38–39)

“Most of the federal skilled workers admitted believe that their current job suits their field of studies (76%) and education (72%) and provides the income they expected (63%).” (p. 33)

Improvements with IRPA

• Federal skilled workers selected under IRPA criteria earn significantly more than their pre-IRPA counterparts, even in the year they arrive. (p. 36)
• Using the year 2004[Note 1] as an example, average earnings for IRPA federal skilled workers were 65% and 51% higher in their first and second years after arriving, respectively. (p. 37, table 3-2)
• IRPA federal skilled workers are also more likely to be working. Their incidence of employment is 5% higher than their pre-IRPA counterparts, with 80% working vs. 75% two years after arriving. (p. 37, table 3-3)
• The percentage of federal skilled workers reporting employment insurance receipts or social assistance benefits, while very low for both groups, has also declined with the introduction of IRPA. (p. 37)
• Skilled workers who have arranged employment have significantly higher employment earnings than those without. IRPA federal skilled workers with arranged employment are also more likely to still be working for their first employer in Canada. (p. 39)

“According to the federal skilled workers surveyed, the application process and procedures are clear and understandable, information is accessible, and the services they received were satisfactory.” (p. 58)

Effective selection criteria

• The most relevant factors for the economic success of immigrants are, by order of importance, arranged employment, language ability and previous work experience in Canada prior to migration. (p. 45)
• Age, education, work experience and partner’s education also have a positive effect on employment earnings, while having relatives in Canada affects earnings negatively. (p. 45)
• More than two-thirds of key informants believe the current selection criteria are appropriate. However, changes were suggested with respect to how the criteria are weighted and the assessment process. (p. 48)

A more diversified pool of workers

• As a result of the new selection criteria, the characteristics of federal skilled workers have changed under IRPA and their profile has become more diversified. (p. 24)
• Women make up a larger number of federal skilled worker applicants than before IRPA (30% of total applicants compared to 23% before). The age distribution is similar, with the majority of federal skilled workers arriving between the ages of 30 and 39. (p. 24)
• Federal skilled workers admitted under IRPA are also more educated and have a better knowledge of the official languages than those admitted under the former selection system. They represent a broader range of occupational and professional backgrounds and are from a more diverse distribution of countries of origin. (p. 24)

High perceived need for the Program

• The results show a strong and continuing need for skilled immigrants in Canada. The majority of employers surveyed said federal skilled workers are meeting or exceeding their expectations, and that they had found it difficult to fill the position for which the worker was hired. (p. 34)
• All stakeholders agreed that the federal skilled worker program has adapted to the needs of the labour market, and that the need for the program has increased. (p. 26)
• Stakeholders attributed the need for the program to the importance of skilled workers for the Canadian economy, the presence of skill shortages resulting from economic growth and increasing rates of retirement associated with the ageing population. (p. 26)

“The Program benefits the Canadian labour market and economy, mitigates some of the impacts of demographic changes, and helps to maintain a stable work force. The Program also contributes to the development of adaptable skills and diversity of the work force and creates opportunities to attract highly skilled and desirable workers to Canada.” (p. 27)

Please note that the page references included refer to the “Evaluation of the Federal Skilled Worker Program” official report, available here.