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Tag Archives: labor shortage

Demand for Red Seal Trades in Canada

The red seal trades also known as “designated trades” are certain types or kinds of compulsory trades that are part of Red Seal Program in Canada. There are about 55 different trades that come under Red Seal Trades and includes all kinds of occupations with each one deemed as designated Red Seal Trade. Red Seal trades account for over 80% of all enrolled apprentices in Canada.

A Red Seal endorsement is added to a tradesperson’s provincial/territorial trade certificate once they pass the Red Seal exam. The Red Seal, which is affixed to a provincial or territorial trade certificate, indicates that a tradesperson has demonstrated the knowledge necessary to meet the national standard in that trade.

Demand for Red Seal Trades – An Outlook

Employer’s value the Red Seal endorsement because it fosters excellence, instills pride in talented people, and makes it easier for them to move about.

Apprentice Demand in Red Seal Trades, published by the Canadian Apprenticeship Forum (CAF-FCA), forecasts that 163,785 new journeypersons will be required between 2021 and 2025 to maintain workforce certification levels across 56 Red Seal trades in Canada.

Canada will require 375,026 apprentices over the next five years to meet this anticipated demand. The following red seal trades are in demand that include:

  • Auto service tech
  • Boilermaker
  • Bricklayer
  • Carpenter
  • Construction electrician
  • Cook
  • Hairstylist
  • Heavy-duty equipment tech
  • Millwright
  • Mobile crane operator
  • Plumber
  • Refrigeration/AC mechanic
  • Sheet metal worker
  • Steamfitter/pipefitter and
  • Welders are among the 15 Red Seal trades highlighted in the 2021 report.

Over the next five years, demand for boilermakers will far outstrip supply across the country. Plumbing appears to be in line with demand, while HVAC mechanics and steamfitter/pipefitter credentials will be relatively plentiful, according to the forecast.

With Seven Hundred Thousand skilled tradesmen anticipated to retire by 2028, the pipeline will be strained with skilled labour actively leaving the market without enough apprentices in the pipeline to replace them.

Immigrants make up only 8.7% of apprenticeships, although accounting for 20% of the population. Canada is falling short of its goal of importing 3,000 qualified tradesmen into the country each year, with only 2,365 entrants satisfying the federal skilled trade program’s qualifications. The Government of Canada invests extensively in apprenticeships through grants, loans, and tax credits, as well as employment insurance benefits during in-school training, project finance, and aid for the red seal program. Over the next five years, Canada is likely to suffer a shortage of at least 10,000 workers in recognized red seal trades, with a tenfold increase when 250 provincially regulated trades are factored in.

As a result, the Canadian government is collaborating with provinces and territories to standardize apprenticeship-training standards in Red Seal Trades. The Government of Canada expects to double the incentive to $10,000 in its Budget- 2021 for firms who hire Canadians from under-represented groups, such as women and people with disabilities, to improve diversity in Red Seal Trades. The Canadian government has waived the Canada Apprentice Loans until March 31, 2023. These initiatives will help to guarantee those who choose to pursue a career in the skilled trades to receive the assistance they require.

Benefits of red seal certification for immigrants

Obtaining the Red Seal certification can be beneficial to tradesmen who are considering moving to Canada. It can aid in obtaining a work visa or applying for permanent residence, increasing the likelihood of a favorable outcome. The Red Seal lends legitimacy to the tradesperson by validating their expertise and knowledge, making them a more viable immigrant candidate.

Regulated Canadian Immigration Consultant (RCIC) at CAN X can help you with your immigration journey.

Contact us for a free consultation.

How to get a work permit to work in Canada

Canada invites international talent to help it achieve its economic and social goals by awarding several sorts of work permits. Thousands of work permits are provided to foreign workers each year to meet the country’s economic and labor market needs.

There are several work permit pathways or programs to choose. Nonetheless, these pathways are divided into two categories.

  • Temporary Foreign Worker Program (TFWP)
  • International Mobility Program (IMP)
Temporary Foreign Worker Program (TFWP)

The Temporary Foreign Worker Program addresses Canada’s labor shortages. Employers must first acquire a Labour Market Impact Assessment (LMIA) demonstrating that they were unable to fill the post with a Canadian citizen or permanent resident.

Immigration, Refugees and Citizenship Canada (IRCC) and Employment and Social Development Canada (ESDC) run the TFWP jointly. Employers can only hire foreign workers after acquiring an LMIA from ESDC, which authorizes the foreign national/worker to apply for a Canadian work permit or permanent residency in Canada.

The role of Labour Market Impact Assessments on issuance of work permits-

A Labour Market Impact Assessment (LMIA) is a document produced by ESDC that evaluates the effects of hiring a foreign worker on the Canadian labour market. While the majority of firms who hire foreign labour will need an LMIA, there are several exceptions. These exclusions to the LMIA are based on the following criteria:

  • Greater economic, cultural, or other competitive advantages for Canada and
  • Benefits enjoyed by Canadians and permanent residents.

A positive LMIA means that no Canadian citizen or permanent resident is available to fill a post, allowing a company to hire a foreign national.  If the LMIA is negative, it means that a Canadian citizen or permanent resident should fill the position.

Getting a Canadian work permit under the Temporary Foreign Worker Program

The foreign worker can apply for a work permit by submitting their employment offer letter, LMIA and all other supporting documentation to IRCC.

Employer-specific work permits, often known as “closed” work permits, are issued under the TFWP. This means that the foreign worker can only work for the employer that recruited them and for the length of time that the Canadian government has permitted.

International Mobility Program – What is it all about?

The International Mobility Program (IMP) is a program to promote Canada’s many economic and social objectives. The International Mobility Program (IMP) allows Canadian firms to hire foreign workers on a temporary basis without having to go through Labor Market Impact Assessment (LMIA) process.

Foreign workers who are eligible under the IMP can apply for a work permit through the IRCC. Some foreign workers may be able to skip this phase entirely and work in Canada for a limited time. 

Either the employer or the foreign worker can lead the process of obtaining a work permit under the IMP. In case an organization or an employer has a vacancy and a foreign worker qualifies for an IMP stream, the foreign worker can be hired.

A Canadian employer must follow these three procedures or criterion in order to hire a foreign worker through the IMP such as:

• Verify that the position or employee in question is eligible for an LMIA exemption.

• Pay $230 CAD employer compliance fee

• Use the IMP’s Employer Portal to submit the official employment offer

Only after completing the above-mentioned three steps will the foreign national be eligible to apply for their own work permit. LMIA-exempt workers may qualify for expedited work permit processing through the Global Skills Strategy if their position in National Occupational Classification (NOC) Skill Level A or 0 and they are applying from outside of Canada.

Regulated Canadian Immigration Consultant (RCIC) at CAN X can help you with your work permit application.

Contact us for a free consultation.

Canada’s Best Immigrant Investor Programs

Canada is rated as one of the best countries in the world for business and getting incredible return of investment (ROI). With a stable economy and a pool of talented and skilled workforce, Canada is a real opportunity for business owners and entrepreneurs seeking an unparalleled quality of life by getting permanent residency status.

Types of Immigrant Investor Programs – A Glance

Canada received a score of 87.2 making it an attractive destination for business and investment. Global investors can unlock investment opportunities and facilitate expansion in Canada with the following investor programs. 

The Start-up Visa Program

One of the most common ways to bring your businesses to Canada or research about investment opportunities is to apply for a Startup Visa. Its main purpose is to help foreign business owners, investors, and prospective entrepreneurs realize their entrepreneurial aspirations. Entrepreneurs who are willing to establish new, high-growth businesses in Canada, support innovation and create jobs should apply under this program. 

The British Columbia Entrepreneur Immigration Regional Pilot

British Columbia is an excellent province to invest in Canada, particularly if you want to invest in the technology sector. British Columbia is renowned as one of Canada’s IT hotspots, and it is always on the hunt for the best tech workers from across the world looking for job opportunities in Canada.

The major goal of this business immigration program is to attract new businesses to the province’s smaller municipalities, resulting in increased economic growth and development.

The Saskatchewan Entrepreneur Stream

The Saskatchewan Immigrant Nominee Program (SINP) is a Provincial Nominee Program (PNP) that allows overseas entrepreneurs to start a new business or buy an existing business in Saskatchewan province. This program is aimed towards seasoned business owners or senior executives who desire to relocate to Saskatchewan.

The program operates under 3 sub-categories:

  • Entrepreneur Category
  • Farm Owners and Operators – Young Farmer Stream
  • International Graduate Entrepreneur Category

Individuals interested in relocating to a specific Canadian province or territory can apply for permanent residency through provincial nominee programs also known as PNP. Each one of the above Canada Investor Visa programs for immigrants requires the applicant to meet certain requirements to be eligible for business immigration to Canada.

Why invest in Canada

Canada provides lot of opportunities for investors and entrepreneurs for creating job opportunities thereby contributing to the development of Canadian economy. The three main benefits of investing in Canada include:

  • Access to global market

One of the most significant advantages of investing in Canada is its strategic position and favorable trade agreements. It has 14 trade agreements with 51 nations, with a total population of 1.5 billion people. Canada is a global trading hub due to its position, multiple coastline ports, and secure trade infrastructure.

  • Highly talented workforce

Canada has the world’s best-educated workforce and it is always on the lookout for new international talent at all levels. In 2021, the Canadian government plans to welcome 401,000 newcomers, with 232,500 of them coming through federal economic programs including the popular Express Entry stream.

  • Lower Costs and lower risks

Canada is also known for having a low Marginal Effective Tax Rate (METR), which is around 23.8 percent. In fact, it is the lowest of among G7 countries, and it is far lower than the Organisation for Economic Co-operation and Development (OECD) average.

Canada is one of the world’s most politically stable countries, ranking 11th on the Corruption Perceptions Index (CPI) and having the safest banks in North America. As a result, your business will have lesser risks and would be lower on cost.

We at CAN X will help you in determining which of Canada’s investor visa options are best suited for your business needs.

Tips for newcomers immigrating to Canada

Canadian immigrants have a plethora of life and career choices. To counterbalance the ageing population, the federal government has implemented a number of immigration programs, including Express Entry, Provincial Nominee Programs, the Atlantic Immigration Pilot, and others. These programs have resulted in an increase in the number of well-educated, experienced, and skilled people in Canada.

New immigrants experience difficulties settling in and adjusting to life in Canada. Adapting to a new culture, time zone and climate may take a couple of weeks. Here are some tips you can follow to ease up this transition in Canada:

Apply for a SIN number

To work in Canada, you will need your Social Insurance Number, which is a nine-digit number. Your SIN will start with a ‘9’ if you are in Canada on a temporary work permit.

You may get a SIN at any Service Canada office and assuming that there is no rush, you will be able to get your SIN in about half an hour. You should not forget to bring your employment or study permit to your Service Canada appointment.

Purchase a local cell phone plan

The sooner you buy a local phone plan, the more you would be able to avoid your home provider’s expensive roaming charges. There are several options for Postpaid and Prepaid plans. The most popular phone carriers in Canada are Fido, Rogers, Bell, Telus, Virgin Mobile and Freedom.

Build your Network

Use networking tools like LinkedIn to meet people who were born and raised in Canada or have lived there for a long time to gain a better grasp of local culture and market trends. Consult with experts in your field to determine whether any certifications or licenses are required for your job.

To expand your understanding of local best practices, attend conferences, networking events, and workshops near your workplace or residence.

Open a Canadian bank account

It is very important to open up a bank account in Canada so you can manage your bills, debit card payments, and avoid possibly costly withdrawals from your existing account of your home country. Keep in mind that each bank checking accounts also known as ‘current accounts’ frequently come with monthly fees. This will also help you build a good credit history in Canada and facilitate your daily activities. Some of the most popular Banks in Canada include RBC, Scotiabank, TD Canada Trust, CIBC and BMO.

Apply for Canadian healthcare

Citizens, permanent residents, and temporary residents of Canada may be eligible for public medical care, which varies by province and covers medical expenses. Each family member will receive a provincial or territory government-issued health card only if qualified.

Newcomers to several provinces and territories may be required to wait for a certain period before becoming eligible for public health insurance. You must apply for temporary private health insurance until you are eligible.

Be aware about your rights and duties

One of the most important things for you to learn is about your rights, obligations, advantages, and privileges, even before you arrive in Canada. Permanent Residents (PRs) of Canada have many of the same rights and advantages as citizens of Canada, while temporary residents have different rights.

These rights are defined in the Canadian Charter of Rights and Freedoms, which provides legal protection for the people of Canada’s fundamental rights and freedoms.

Get help from organizations for newcomers

Local Newcomers organizations can help you to find a place to live or help you get settled in Canada. You can also reach out to them if you have questions about things like administrative procedures, transportation, the school system or finding a job. 

Moving to a new country is hard. There’s a lot to think about both before and after your arrival in Canada. To ensure your new adventure sail smoothly in Canada, take advantage of all the support available to you.

If you need any immigration help, feel free to contact us.

Canadian Workforce Plan 2022

In response to robust demand for workers, employers across Canada are looking to bump up salaries as a part of their 2022 workforce plan. Many employers are losing business and productivity due to labor shortage. To attract talent and to address labor constraints, employers are incentivizing local population and raising salaries of existing workforce.

LifeWorks survey report revealed that average salary in Canada would climb 2.7 percent in 2022, excluding firms that plan to freeze wages.

Base salaries are anticipated to rise in 2022, with an average yearly pay increase of 2.5 percent. Due to the tight labor market, employers are being compelled to make the most significant compensation adjustments in the last five years.

Employers preparing to scale up wages to attract and retain workers

In this competitive labor market, Canadian firms are using bonuses to attract and retain workers. As per the survey carried out by Mercer Talent, about 50% of respondents are ready to pay higher salaries than market rates. In response to the challenges in attracting and/or retaining talent, 41.67% of companies are revisiting their strategic workforce planning while 50.93% are reevaluating compensation and benefits offerings.

The Canadian economy is slowly recovering, and companies are being compelled to loosen their purse strings because of labor shortage. Employees are seeking both more income and persuasive jobs because of the flourishing labour market and rising inflation.

Increase in salary based on specific sectors

According to the LifeWorks survey report, the highest projected average salary increase for 2022 will be on wholesale trade with a planned hike of 3.1 per cent followed by construction (2.9 per cent) and professional, scientific and technical services (2.9 per cent). The lowest salary increase is projected in healthcare and social assistance (1.8 per cent) and information and cultural industries (1.5 per cent).

Salaries are expected to increase while wage freezes decline, which is good news for most Canadian workers, even though they must keep in mind the looming inflation rate.

Opportunities for immigration as a measure to resolve labor shortage

There are immense opportunities for skilled workers in Canada, due to labor shortage in various industries. Atlantic Immigration Pilot, Canadian Experience Class, Caregiver Pilot and Federal Skilled Trade Class are just a handful of skilled worker immigration program for skilled and talented workers willing to immigrate to Canada.

In addition, workers interested in immigrating to Canada can opt the Global Talent Stream pathway of the Temporary Foreign Worker Program (TFWP), which expedites the processing of Canadian work permits and visa applications in order to meet or resolve labor shortages.

Organizations and business leaders across Canada are hopeful that immigration will resolve the prevalent labor crunch and enable businesses to access talent they need to recover and grow.

Canadian business leaders want government to speed up the overall process of immigration with an emphasis on streamlining and accelerating pathways for temporary foreign workers.

We at Can X offer the following solutions to address labor constraints in Canadian business:

Give us an opportunity to discuss your requirements and let our experts find a solution tailored to your needs.