In short:
- The Trump Administration just implemented a steep hike in the H-1B visa fee to $100,000.
- Most tech firms in the US rely on the H-1B visa program to meet their requirement for skilled tech workers from foreign countries.
- The Trump Administration wants to encourage these firms to hire American workers instead.
- With the costs of economic immigration to the US skyrocketing overnight, Canada is likely to emerge as the new preferred destination for the top tech talent out there.
It has always been the case that the first choice for skilled economic immigration, especially in IT or any of the other STEM fields, has been the United States. The top talent always opted for the United States, and Canada remained the second preference up until now. But thanks to the aggressive anti-immigration policies of the Trump Administration, this is all set to change.
Trump Administration’s drastic changes to the H-1B visa policy
Recently, the US government implemented a steep hike in the H-1B visa fees to $100,000 in order to further discourage economic immigration to the country. Already, the number of work permits issued under H-1B has been capped at 85,000 per year, with some exemptions, and they are allocated through a lottery system. Up until now, the visa fees ranged between $2,000 and $5,000, depending on the size of the firm. The new $100,000 fee, which came into effect on September 21, is meant to discourage these companies from hiring foreign workers and employ Americans instead.
H-1B visas are granted for a period of a maximum of three years, with the option to extend them to six years. Previously, the application fee had to be paid again when applying for the extension. The new fee, however, is said to be a one-time payment made at the time of initial application. As of now, it is not clear whether the same amount will have to be paid again when extending the visa to six years. Reports indicate that the Trump Administration is planning to announce even more reforms in the coming months.
The issue here is that for certain highly skilled positions, the American tech firms are finding it difficult to source the required talent locally. However, the Trump Administration seems to be under the impression that tech companies are choosing to hire foreign workers only because of the lower pay.
Canada is the obvious beneficiary of this shift in US policy
As things stand now, Canada has the potential to emerge as the new primary destination for such highly skilled tech workers going forward. The new Carney Administration is focusing on encouraging more skilled economic immigrants into the country while trying to get some of the non-economic immigrants out in the next two years. Ottawa is planning to meet their target of bringing the percentage of temporary residents down to 5% of the total Canadian population by 2027.
Canadian immigration options for H-1B aspirants looking for alternatives
Canada’s economic immigration program offers many pathways to H-1B aspirants looking for alternatives. The main advantage is, of course, the visa fees. The visa fee for an economic immigration program in Canada costs only between CAD 155-2,500, compared to the USD 100,000 for the H-1B visa.
Express Entry: Federal Skilled Worker Program
- This is a permanent residency immigration program meant to attract foreign workers with skills and work experience.
- It follows a points-based system based on factors such as age, language proficiency, education, and work experience.
- The main focus is on fields such as STEM, healthcare, and other trades.
- Processing time: 6 months.
Global Talent Stream
- This is a fast-tracked temporary foreign worker program to allow employers to hire skilled workers to fill technological and engineering positions quickly.
- Processing time: 2 weeks.
Provincial Nominee Program
- This province-specific permanent residency program is meant to attract skilled workers specific to the provincial job market requirements.
- Processing time: 6-12 months.
Start-up Visa Program
- It is aimed at entrepreneurs looking to start innovative businesses in Canada.
- Processing time: 12-16 months.
Planned immigration programs to attract H-1B Aspirants
- The Carney Administration has already announced that they would be offering an immigration plan specifically for such H-1B visa aspirants looking for alternatives.
- They are also expected to revive the 2023 H-1B Holder Work Permit program, which offered a 3-year open work permit to the US H-1B visa holders without any job offer requirements.
What can Canada do more to attract highly skilled economic immigrants?
- Bring down the processing times and backlogs.
- Increase the currently allotted slots for economic immigration programs.
- Fix the infrastructure issues, especially in the housing sector.
- Bring back the discontinued H-1B Holder Programs, such as 2023 H-1B Work Permit program.
Conclusion
The demand in Canada for skilled economic immigrants is only rising, especially in fields such as STEM, healthcare, agriculture, and other skilled trades. While the global talent is looking for alternative career destinations to the United States, Canada must welcome them with a simpler immigration process and a clear pathway to permanent residency.
How can our immigration lawyers help you?
If you are planning to apply for a work permit or permanent residency in Canada, contact our experienced immigration lawyers today. Our experienced legal team will guide you through your immigration application and help you complete the process in time.
Call our immigration lawyers at 905-405-0199 for a free consultation today.
