The pandemic has slowed — or entirely stopped — economies, travels and normal routines around the world, and this includes immigration. And while some countries are trying their best to reopen in a meaningful way, the United States seems to be doing the opposite, consistently hammering immigrants both in the US and those trying to enter.
Here are some stats to start with: in May of 2019, the State Department issued nearly 40,000 visas for permanent immigration into the US
But in May 2020, they issued just a little under 700. And while this drop in visa issuances was necessitated by COVID-related travel restrictions, it seems that the Trump administration is looking to keep immigration numbers low, even when some believe that doing so will actually slow down economic recovery.
Most recently, international students currently already in the US were threatened in a profound way.
Immigration and Customs Enforcement (ICE) proposed to force international students out of the United States if all of their classes this coming fall were to be taught online, scaring thousands upon thousands of students currently in the US
The number of people immigrating to Canada increased by 26% between 2015 and 2019, and this number is projected to continue rising.
Ultimately, a lawsuit filed by Harvard University and MIT, and joined by many other universities and organizations, led ICE to reverse this proposal, letting those international students already in the U.s. stay, even with fully-online courses, fear amongst foreign nationals living in the U.s. went up, along with uncertainty, anxiety and the desire for something better.
The American Dream was once the goal of immigrants across the globe. But as U.s. immigration — for both professionals and students — slows to a trickle, these folks are instead looking north to Canada.
The number of people immigrating to Canada increased by 26% between 2015 and 2019, and this number is projected to continue rising.
So as talent flocks to Canada, US companies who can’t get the skilled workers, including recent grads, in the US are flocking to Canada too. Here’s what’s happening and, if you have a US presence and rely on skilled talent, why now is the time to consider expanding your company into Canada.
Canada attracts foreign students and skilled workers
Canada is working hard to overcome its shrinking workforce and aging population. As Trump-supported bills in Congress could reduce legal immigration to the US considerably, Canada has been admitting approximately three times as many immigrants as America.
Canada has become an immigration Wonderland. In addition to a kickin’ economy, Canada is still actively seeking to expand its workforce through immigration. How is the Great White North managing to increase immigration?
In June 2017 Canada launched the Global Talent Stream, which reduces visa application times from 10 months to, in non-COVID times, just two weeks. In 2019, the Canadian government said that between the program’s launch and January 2019, more than 1,000 tech companies had hired more than 4,000 foreign workers through the program.
That’s a lot of hires, but Canada still has an IT skills shortage, with a reported 200,000 jobs needing to be filled over the next few years. But where will they find 200,000 highly skilled individuals to fill these tech jobs? The answer is Canada’s top-notch universities and specifically their focus on international students,
In 2019, more than 650,000 international students studied in Canada at the post-secondary level. There might be even more in 2020. And Canada wants to ensure they stick around.
For example, Canada recently announced that it would make it easier for foreign students to study online while borders remain closed and still qualify for a post-graduation work permit. In stark contrast, the Trump administration has been working to keep international students out of the US
Although the administration abruptly reversed course on this order, it was still a boon for Canadian universities. Canada issued 30,785 study permits in May 2020 to foreign students, up 11% from 27,810 permits in May 2019.
In 2019, more than 650,000 international students studied in Canada at the post-secondary level. There might be even more in 2020. And Canada wants to ensure they stick around.
Canada is making it easy for international students to submit a study permit application, which enables them to work, and which many international students count on as an ultimate pathway for permanent residence.
Tech firms might be interested to learn that the University of Toronto’s international acceptances is up nearly 20% compared to last year, and the University of Waterloo has seen interest from foreign students jump too.
Both these top-notch universities have stellar engineering programs and are smack dab in the middle of Canada’s booming tech hubs.
The perfect place to recruit new talent, right?
That’s why US companies are flocking to Canada
Many US companies are looking north to set up a second headquarters. Companies such as Google, Facebook, Twitter, and Amazon have offices in either Toronto, Canada’s most populous city and North America’s fastest-growing tech market, or Waterloo — an East Coast tech hub — while other companies have expanded to Vancouver and Montreal.
US tech hubs, like Silicon Valley, have become increasingly unaffordable. San Jose has a median home price of $1 million, compared to about $850,000 in Toronto.
By 2022, Google expects its overall Canadian workforce to grow to 5,000 employees at its Waterloo Region engineering office and in Toronto and Montreal.
Sure, the talented and ever-expanding pool of skilled workers for hire is tempting, but your company’s budget should also be considered. Tech salaries are still cheaper in Canada, with the average Toronto tech worker making $100,000 compared to $145,000 in San Francisco.
US tech hubs, like Silicon Valley, have become increasingly unaffordable. San Jose has a median home price of $1 million, compared to about $850,000 in Toronto.
To put it simply, you cannot ignore Canada’s booming tech market. Canada’s unique combination of public investment, private capital, research capacity, and talent has generated over 50,000 jobs and attracted nearly $3 billion in investment since 2010. Yes, that’s billion with a “B”. Canada has the talent, quality of life, and funding. Now, all it needs is more employers building cool things to get Canada’s economic flywheel really going.
How to easily expand a US company into Canada
Throughout this COVID crisis, it seems that a debate between the US and Canadian immigration systems has been rekindled. In years past, the US was often the winner, but it seems that now, in terms of commitment to continued immigration growth and flexibility — Canada is coming out on top.
How easy is it to expand into Canada? Well, it depends on how you go about it. Large companies, such as the Fortune 500, often have the resources to open up full-on Canadian offices when they find that there’s a need to expand up north. But it doesn’t have to be that complicated for companies that are smaller, or that may want to just test the Canadian waters before committing to setting up a legal entity and establishing a full-on presence in Canada. The easiest way to go is with a professional employer organization, or a PEO, like Syndesus.
US companies can establish a Canadian presence by hiring workers in Canada through Syndesus.
Syndesus acts as the legal entity – employing, paying, and providing benefits and training to the Canadian worker, while the US company dictates the manner of work that’s done, and can still transfer equity and other perks, allowing for easy work trips to the US if needed due to geographic proximity.
Indeed, given Canada’s strong public healthcare system, slightly lower salaries, and similar quality of life, hiring in Canada can actually be a smart business decision on multiple fronts.
Want to hear more? Book a consultation to chat about your hiring situation. Syndesus can help you expand your team with the world’s most talented technology professionals but without the world’s most frustrating immigration system.
