Job Hunting: Here’s Why US Workers Are Saying ‘Yes’ to Canada

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Canada is taking measures like increasing immigration targets and changing the current system to allow more newcomers to help with its labor shortage. If you’re working in the U.S. and currently out of work or looking for alternatives, you may have heard about some options available in Canada.

Why have U.S. workers said yes to Canada? Here’s a look at the realities of relocation north of the border.

Canada Eases Visa Requirements

In July of 2023, Canada opened up a pilot program that would let 10,000 H-1B visa holders in the U.S. apply for a three-year open-work permit to find jobs in Canada. Since this opened, over 6,000 highly U.S. foreign workers have entered Canada. The program was so popular that it reached the cap of 10,000 applicants by July 17.

The bureaucratic visa system in the U.S. pushed out thousands of highly skilled employees. The H-1B visa is designed to let American companies employ foreign employees in specialized jobs like the tech industry, but with all of the job cuts in the tech sector, many workers living in the U.S. have found themselves struggling.

Canadian Visa Requirements

It’s worth noting that Canada offers two types of work permits to those looking to migrate to the country:

1. Employer-specific work permit. Your employer must provide you with a copy of your employment contract, along with either a copy of a labor market impact assessment (LMIA) or an offer of employer number if you’re LMIA-exempt.
2. Open work permit. This permit allows you to work for any employer if you meet one of the qualifications listed here. This would come with more flexibility for your employment options.

If you’re planning to apply for a Canadian work visa, you will want to speak with an immigration lawyer to see which option is better for you.

It’s also worth mentioning that Canada announced an aggressive immigration plan in 2022 to bring in 1.5 million immigrants by 2025 to help with the labor shortage. What this means is that the government may continue to introduce new visa rules that make it easier to apply in the future. However, it’s worth noting that you’re going to have to stay tuned to announcements regarding future policy changes as they get rolled out.

The Use of the LMIA

The federal government in Canada relies on the LMIA to figure out the impact of hiring a foreign worker on the wages and employers of Canadians. If your job requires an LMIA, then your employer would have to convince the federal government to obtain a positive or neutral LMIA so that they can bring in a foreign worker. There are many open work permits available in Canada, depending on economic and social interests.

A U.S. citizen could be eligible to apply for an LMIA-exempt work permit due to the United States-Canada-Mexico-Agreement (USMCA). As a U.S. citizen, you would have more flexibility with working under the USMCA work permit if your current employer offers you a job or if you’re entering to make substantial investments or trade in Canada.

As an American, you can also transfer within your current company to a branch based in Canada with an intra-company transfer temporary permit.

At the end of the day, the work permit that you’re going to have to apply for will depend on the field that you’re employed in or hoping to seek employment in. You want to settle this matter before you try to cross the border to avoid any conflicts.

Are U.S. Workers Finding Better Opportunities in Canada?

With the tech industry laying off a massive amount of tech workers on work permits, these people have had no choice but to look into options north of the border. TechCrunch data shows over 183,648 workers have lost their jobs in the tech industry.

Many of those applied for the pilot program, which filled up nearly instantly.

Does It Make Financial Sense?

Migrating to a different country is a major life decision with multiple factors involved. Here are some of the points that you should think about before making the move to Canada:

• Is your new job stable? The type of employment that you’re able to land, from salary to career advancements, should play a considerable role in your decision-making process.
• Will the costs of moving be worth it? You’ll also want to map out the costs associated with moving your entire life to a new country.

The Realities of Working in Canada

Just like every state has its own set of tax rules, every province in Canada will have different regulations. Here are some considerations before heading north to work in Canada:

• The currency is worth much less. When calculating your earnings, it’s critical that you convert the figures to the U.S. dollar for comparison. Depending on the day, the Canadian dollar fluctuates to be worth much less than the American dollar. You want to determine your actual earnings to ensure that moving is worthwhile.
• Real estate is expensive. Canada is becoming known for its notoriously expensive real estate. With the national average home price increasing 2% in October to CA$656,625, many residents are struggling with affordability. This is something worth thinking about if you want to become a homeowner in the near future.

Closing Thoughts

As frustrating as the visa system may feel in the U.S., there are just as many struggles with trying to enter Canada. As an American citizen or a worker based in the U.S., you’ll want to extensively research your visa options. It’s urgent that you read through the Canadian government’s visa requirements before you think about entering the country to find work.

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