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(IRCC) has proposed an amendment to the Immigration and Refugees Protection Act (IRPA) that would introduce a new permanent economic immigration class for workers who have experience and training that falls under the (TEER) levels 4 and 5.

The department says the pathway would “support the modernization of the economic immigration system by expanding the selection of permanent residents to candidates with a more diverse range of skills and experience.”

According to IRCC, ministerial instructions with more detail about the new class and any pathways will be released this fall in the Canada Gazette.

Canada’s TEER system

Canada’s TEER system was introduced as part of the evolution of the National Occupation Classification (NOC) system in 2022. The system categorizes occupations into “TEERS,” replacing the “Skill Levels” in NOC 2016.

TEERs 0-3 are for occupations that typically require a post-secondary education or an apprenticeship for a specific length of time. TEERS 4 and 5 cover those that need just a high school education, on-the-job training or, in the case of TEER 5, no formal education but some Occupations that usually need short-term work demonstration.

Currently, TEERs 4 and 5 are not generally eligible for federal economic immigration programs such as those managed by , meaning that newcomers who arrive in Canada to work in one of those occupations often face more difficulties and add to Canada’s number of temporary residents.

Many newcomers to Canada arrive as temporary residents and due to the current labour market, some find themselves in what Statistics Canada defines as “low-skilled” positions. In a study released earlier this year, Statistics Canada said “there has been a shift in the employment of (TWFs) and toward low-skilled industrial sectors. These include the accommodation and food services sector and the retail trade sector.”

It went on to say that “these shifts could potentially result in a higher proportion of low-skilled TFWs among new immigrants.”

This also means that TFWs and international students are impacted by low earnings and slow earnings growth, delaying their integration into Canada’s economy.

Temporary resident levels

The creation of new permanent resident pathways for TEER 4 and 5 newcomers is another example of how IRCC is shifting toward reducing the number of temporary residents in Canada. Earlier this year, the department announced it is seeking to stabilize these numbers which peaked in 2023 at over 2 million.

The department said that these levels were no longer sustainable for Canada’s economy. According to a statement made at the time by Immigration Minister Marc Miller, Canada has recovered 138% of the jobs lost throughout the COVID-19 pandemic.

Temporary residents, such as workers, students and visitors have traditionally not been capped. This year, IRCC has reversed this policy and implemented a hard cap on the number of international student applications it will process. It is also adding temporary resident levels to the 2025-2027 Immigration Levels Plan, expected to be released on or by November 1.

Another way IRCC will rein in the number of temporary residents is through an increase in the number of “domestic draws.” This means that IRCC has been looking to make temporary residents already living in Canada permanent residents before considering bringing more foreign nationals from overseas.

Recently, there has been an uptick in the number of Express Entry draws for candidates with a provincial nomination as well as those in the pool through the . Typically, these applicants are already living and working in Canada as temporary residents. Throughout July alone, IRCC issued 14,575 invitations to apply to these candidates.

These measures have the double impact of helping IRCC reach its annual target of permanent residents for this year, and the upcoming year, as well as shrinking the temporary resident population.