Canada can enhance the Express Entry system, the biggest category of economic immigration, by reforming the Comprehensive Ranking System (CRS) calculation.

Studies are now pointing out that Canada can choose its new permanent residents more carefully and that the Express Entry CRS calculator has weaknesses.

To put it more clearly, the Express Entry system's Comprehensive Ranking System (CRS), which considers factors including age, education, language proficiency, and work experience, finds candidates with the best chance of making a living in Canada over the long run.

A new research titled "Quality Over Quantity" by the C. D. Howe Institute makes the case for updating the CRS selection factors and the weights that go along with them.

In 2023, Immigration, Refugees and Citizenship Canada (IRCC) implemented a screening process known as category-based selection. This method prioritizes candidates who possess prior work experience in fields where there is a lack of labor.

However, the report contends that in order to meet the demands of the short-term labor market, this new category-based selection in low-paying industries like transportation, agriculture, and agri-food may deter capital investment, which could result in higher unemployment rates down the road if the needs of the labor market change.

Furthermore, it claims that by significantly lowering the cut-off points to reach target numbers for each category, revisions have reduced the quality of qualified immigrants entering Canada.

Furthermore, the quality of applicants for permanent residence and the selection process may suffer as a result of the recent rise in the number of temporary residents.

This paper suggests that the current CRS grading scheme needs to strike a better balance between the particular abilities that are most valued in the Canadian economy and more general "human capital" considerations.

Since current employment salaries appear to be the most accurate measure of future economic potential, BCA advises figuring out how to allocate points for them. Over the next three years, the CRS calculation should incorporate this data.

C.D. Howe Institute's Suggestions Regarding the Express Entry CRS Calculator

The government needs to decide on the optimum standards and weights for choosing skilled immigrants, including candidates for the Provincial Nominee Program, in order to enhance the selection process for CRS and Express Entry.

Statistical earnings regressions that establish a connection between the post-landing salaries of immigrants and their human capital characteristics at the time of application are the most efficient method for achieving this.

In order to ensure the caliber of immigrants, the report also recommends establishing a minimum point requirement for eligibility under the Express Entry system.

Canada has shifted its focus from the human capital model of selection to low-skilled occupations in order to meet short-term labor market demands.

Establishing a basic EE requirement could encourage candidates to raise their scores on variables that they can influence, such language proficiency, leading to a more seamless transition into the labor market.

Another proposal is to make the pre-admission earnings component, like the necessity of Canadian experience under the EE, a core human capital criterion and/or a skill transferability factor.

The government may take into account awarding points based on the wage criteria of their home country to candidates who have no prior work experience in Canada.

Australia has a more rigid linguistic ability point system than Canada. Canada should think about adopting Australia's stringent language competence point system in order to enhance the EE.

This policy change may incentivize applicants to improve their language proficiency prior to immigration, which would hasten integration and improve outcomes for the applicant's spouse or partner's job market standing.

Suggestions from the Alberta Business Council

The IRCC can decide how to award points and validate foreign income for candidates without Canadian experience by working together with experts in labor market economics and international finance.

Canada has a great chance to take the lead in immigration selection as a result of this.

removing the elements of the CRS points-based system that do not accurately represent prospective economic growth.

Determine if the "Additional Points" granted to potential immigrants have any impact on favorable economic results in addition to the basic traits of transferability and human capital.

Even though the CRS algorithm gives significant weight to extra parameters, Canada has not measured these elements using any success metrics.

People from smaller nations or those who immigrated to Canada less frequently could experience disadvantages like having a brother living here, which is not indicative of their significant prospective economic contributions.

Within three years, determine which talents are most valuable and in-demand in the Canadian economy and explore best practices for incorporating them into the points system of the CRS.

The IRCC ought to investigate the possibility of including foreign revenue into the CRS computation in close coordination with experts like labor economists and business executives.

Category-based drawings should be removed in order to prevent selection bias after a more sophisticated method has been shown to enhance CRS prediction of immigration outcomes and is incorporated into the points system.

Create basic selection criteria (CRS cut-offs) that surpass the Express Entry program's minimum eligibility requirements after the CRS has been improved.

Utilize this criterion to ensure that the emphasis remains on applicant quality and the expansion of the pool of qualified applicants, even in the event that immigration targets increase.

Reduce the complexity of the economic immigration eligibility and selection criteria so that potential candidates are aware of what Canada is looking for, what is expected of them, and if they satisfy the requirements.

This should entail outlining precise standards for Canada's standard of living and cost of living in addition to the values that guide a liberal democratic society.

What is the system of Express Entry?

The Express Entry system is a federal online application system for economic immigration that the Government of Canada utilizes to handle and process skilled worker applications for permanent residence.

What are the Express Entry system's annual immigration targets?

The Express Entry program is expected to bring 110,770 new permanent residents to Canada by 2024, according to the most recent annual immigration levels plan available.