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Foreign workers in Canada: Differences in the transition to permanent residency across work permit programs

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Key Takeaway
For certain cohorts of foreign workers in Canada, the rate of transition from work permit holder to permanent resident has increased. However, the change isn’t consistent across work permit programs—in fact, the disparities are significant.

 

This Statistics Canada report examines the rate at which foreign workers are transitioning from holding temporary work permits to becoming permanent residents (PRs) in Canada. The results show an overall increase across successive cohorts of work permit holders, though rates vary across individual work permit programs.

In the 2011 to 2015 cohort of foreign workers, 34% transitioned to PRs five years after obtaining their first work permit. In the 2006 to 2010 cohort, by comparison, the transition rate was 27%.

The post-graduation work permit (PGWP) program and live-in caregiver programs have higher transition rates, while agriculture programs have lower rates. The transition rate for PGWP holders, in particular, has spiked: in the 2006 to 2010 cohort, the rate was only 8%, but it rose to 36% in the 2016 to 2020 cohort, significantly affecting overall rates. Disparities between programs have widened, with the PGWP program now outperforming agriculture programs.

For PGWP holders (as well as the spouses or common-law partners of skilled workers and students), the Provincial Nominee Program and the Canadian Experience Class—both considered economic class immigration streams—have become the main pathways to PR status. In fact, the majority of work permit holders now transition through economic class streams, a trend that has grown more pronounced over time.

In summary, transition rates for foreign workers seeking PR status have generally increased among foreign workers in Canada, but the growth varies significantly across different work permit programs. The PNP and CEC have emerged as key pathways, driven by the growth of the PGWP program.

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