When it comes to immigration in 2020, America’s loss is Canada’s gain. The current state of immigration in these two countries perfectly illustrates this point.

Immigrants are fleeing or avoiding the US — by force or by choice — and instead, in many cases, opting for a move to America’s northern neighbor, Canada. But why?

For years, the world’s brightest talents have endured a pretty labyrinthine (likely an understatement) immigration process to attend American schools and work for US companies.

However, Trump administration regulations, executive orders, and administrative guidance have turned this process from confusing to dysfunctional, at best. Immigration has become slower, costlier, and even less certain for immigrants who want to study or work in the US than ever before.

Citing the coronavirus and a desire to protect American workers, the Trump administration has effectively halted most avenues for legal immigration to the US American universities and tech companies have watched these immigration developments in utter disbelief.

And since international talent has been crucial to the growth of science and technology in the US, these new immigration policies are only set to hurt America’s economy.

In addition to the immigration woes, the American economy is just not as irresistible as it once was.

The pandemic-driven recession has done pretty significant damage – American unemployment was a staggering 14.7% in April (though has since fallen to 11.1% in June) and it looks like these numbers won’t return to pre-pandemic levels for a long time.

The US Congressional Budget Office suspects that the unemployment rate may take over 10 years to recover. 

If immigrants won’t — or can’t — go to America, where will they go?

There are a number of countries competing for the world’s best and brightest workers. China, Australia, and the United Kingdom are all attractive draws, but Canada is more likely to tempt would-be-American tech recruits across the border.

From 2017 to 2019, the number of US residents who received “invitations to apply” for Canadian permanent residence through Express Entry almost doubled. And this number is going up!

If you run an American tech company, you might be sweating right now. You’re not alone. Tech companies across the US are feeling the heat.

As America’s grip on the global market for foreign talent loosens, what can American tech companies do to continue recruiting the very best employees? Well, one tactic to keep growing is “nearshoring,” the practice of opening an office in a nearby country. In this case, Canada.

Why open an office in Canada?

It shouldn’t shock you to learn that the tech industry across Canada is booming. Over the past five years, Toronto saw the biggest growth in technology jobs of any North American city, outpacing even San Francisco and New York.

One of the biggest reasons for this tech boom is US immigration policy and the reality that the Trump administration has made it harder for high-skilled workers, entrepreneurs, and students to get visas. 

A diverse, highly skilled workforce depends heavily on good local universities, and Canada has the third-largest international student population in the world, including many impressive universities with top-rated engineering programs.

As America’s border began to close tighter, Canada’s federal government began increasing immigration. One way they did this was through the Global Talent Stream (GTS) – a program designed to fast-track the entry of foreign workers with specialized skills. The pandemic has slowed economies around the globe, and yet, GTS is bringing new talent to the Canadian workforce. 

Another way is through education. A diverse, highly skilled workforce depends heavily on good local universities, and Canada has the third-largest international student population in the world, including many impressive universities with top-rated engineering programs.

And while Canada is attracting more international students, America is repelling them. For example, the number of Indian students at US universities declined by over 25% between academic years 2016-17 and 2018-19.

Canada is working hard to make it easier for students and tech workers to immigrate. So if you’re looking for tech talent, look no further than, well, just a bit north. 

Be like Google

The best spot for a tech company to set up shop may no longer be Silicon Valley – American tech companies are following the global tech talent into Canada. Tech giants like Google, Microsoft, Intel, and Uber have gone — or plan to go — north of the border. And companies like Asana, Postmates, Lyft, and Zenefits are in the midst of staffing their companies in Canada too.

The Global Talent Stream was created in 2017 as a solution to the high demand and limited supply of labor. Looking for a super talented engineer for the newly established Toronto branch of your American company? You’re not limited to Canadian recruits.

Since 2018, more than 2,000 new jobs have been created in Toronto by US companies that have moved to Canada to dip into the country’s talent pool. This easy access to foreign professionals via the Global Skills Strategy is very tempting to tech companies hurting for new talent.

Operating your business in Canada not only gives you access to Canada’s existing talent pool, but it also makes importing new talent incredibly easy.

The Global Talent Stream was created in 2017 as a solution to the high demand and limited supply of labor. Looking for a super talented engineer for the newly established Toronto branch of your American company? You’re not limited to Canadian recruits.

In Canada, your recruiting efforts can span the globe! And there is no limit on how many international hires you may make. Best of all, the process is smooth and takes just a few weeks (though processing has slowed some during COVID-19).

After reading this, are you envisioning your dream tech team in Canada? Fortunately, you can make this dream a reality. 

Expand in Canada

Canada is very quickly becoming the hottest tech sector in North America. It’s not even up-and-coming, it’s already here, and experiencing tremendous growth. In other words, Canada is the place you want to be right now.

And you don’t have to fully open an office in Canada either – you can start by hiring one or two workers remotely through a Professional Employer Organization (PEO) like Syndesus. We’ll take care of the immigration, payroll, hiring and other processes while you focus on expanding your talented workforce.

Let’s connect to see if we can help you and your company make the move into Canada!