In July 2023, Canada launched a new visa program designed to attract skilled professionals currently working in the U.S. under H-1B visas. This initiative aimed to provide a more stable immigration option for high-skilled workers who are often frustrated by the uncertainties of the American immigration system. Unlike the U.S. program, Canada’s approach does not require applicants to have employer ties or adhere to country-specific quotas, which can complicate long-term employment in the U.S. The response was overwhelming, with Canada receiving 10,000 applications within just 48 hours of the program’s launch.
Initially, there were concerns that the departure of these 10,000 skilled workers could disrupt critical industries in the U.S. However, data from Immigration, Refugees, and Citizenship Canada (IRCC), obtained by the Niskanen Center, shows that only 1,205 H-1B workers relocated to Canada in the first year of the program, accounting for just 12% of those who applied.
The application criteria were straightforward: candidates needed to hold a valid H-1B visa and reside in the U.S. at the time of application. The online application required documentation to verify these conditions, suggesting that most applicants likely met the eligibility requirements. Therefore, it is unlikely that denials contributed significantly to the low number of arrivals in the first year.
Administrative delays also do not appear to be a major factor in this slow uptake. While specific processing times for this visa are unavailable, work permit applications from the U.S. typically take about 15 weeks, or roughly 3.5 months. Since applications were submitted between July 16 and 17, 2023, and many participants arrived within that same calendar year, it seems improbable that processing delays prevented over 8,000 applicants from relocating.
Instead, it appears many applicants viewed this program as a backup option. Stakeholders had noted at launch that while unsuccessful H-1B lottery registrants might consider Canada a second choice, this program specifically targets those already holding H-1B visas and currently employed in the U.S. Despite offering favorable terms—such as an open work permit not tied to a specific employer and the possibility of self-sponsoring for permanent residence after one year—many still prefer the immediate benefits of living and working in the U.S.
Although Canada’s program has long-term advantages, eligible applicants may still find reasons to remain in the U.S., at least for now. While Canada’s open work permit offers greater flexibility than the H-1B visa since it is not employer-specific, finding a job in Canada could be more difficult due to its unemployment rate compared to that of the U.S. Participants would need to leave their jobs in the U.S. to seek employment in Canada, which could mean trading short-term instability for long-term stability.
Demographic data shows that those who have moved to Canada are similar in age distribution to H-1B holders in the U.S., though they tend to be slightly younger and less likely to have dependents with them. This might seem surprising since Canada’s program allows adult dependents to obtain work authorization while spousal work authorization is more limited in the U.S. However, younger individuals may be more willing to accept short-term instability than those with families who are more established in their current jobs.
In summary, while Canada’s new visa program has not yet significantly impacted the U.S. labor market, it may reopen for more applicants in the future. If the U.S. does not implement stronger measures to retain its top talent, countries like Canada will continue to present more attractive immigration pathways. This could lead to a drain of skilled professionals essential for driving innovation and economic growth in the United States.
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