Express Entry Reform: Will Canada Change CRS Calculator?

The eligibility and ranking of candidates for immigration are mostly determined by the Comprehensive Ranking System calculator, which is a key component of Canada’s Express Entry system. Acknowledging the need for ongoing enhancements, Canada is contemplating modifications to the CRS calculator to improve the efficiency and equity of the Express Entry scheme.

The purpose of these suggested modifications is to guarantee that skilled workers are chosen using the most pertinent standards and to better correspond with the immigration goals as they change.

Canada can modify the Comprehensive Ranking System calculator to enhance the Express Entry system, which is the main economic immigration category. Numerous studies are now highlighting the shortcomings in the Express Entry CRS calculation and stating that Canada needs to improve its selection process for new permanent residents to better understand

To determine which candidates have the best chance of making a living in Canada over the long term, the Comprehensive Ranking System of the Express Entry system considers factors such as age, work experience, language proficiency, education, and competency.

C D Howe Institute Report

Revision of the CRS selection parameters and their weights is recommended in the recent paper “Quality Over Quantity” by the C D Howe Institute. In 2023, Immigration, Refugees and Citizenship Canada (IRCC) instituted category-based screening, emphasizing candidates with prior work experience in fields experiencing labor shortages.

However, the report also suggests that this new category-based selection in low-paying jobs like transportation, agriculture, and agri-food may discourage capital investment to address short-term labor market needs, which could result in higher unemployment rates if labor market needs change in the future.

Furthermore, it claims that by drastically lowering the cutoff points to meet goal numbers for each category, reforms have reduced the quality of qualified immigrants entering Canada. Furthermore, the quality of applicants for permanent residence may suffer as a result of the recent rise in the number of temporary residents throughout the selection process.

Business Council of Alberta Report

The Business Council of Alberta, in a related paper, suggests figuring out how to give points for earnings from existing employment, as this is the most reliable indicator of future economic potential. This paper suggests that the current CRS grading scheme needs to strike a better balance between the particular talents that are most valued in the Canadian economy and more general principles of human capital.

The best way to allocate points for current employment salaries, which appear to be the most accurate measure of economic potential, is to consult the BCA. To enhance CRS and Express Entry selection, these data should be added to the CRS calculator throughout the next three years. The government must establish the most appropriate standards and weights for choosing skilled immigrants, including candidates for the Provincial Nominee Program.

Doing statistical earnings regressions that connect immigrants’ post-landing salaries to their human capital characteristics at the time of application is the most efficient way to do this. 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 and short-term labor market demands. Establishing a basic EE criterion could encourage candidates to raise their scores on variables like language proficiency that they can influence, leading to a more seamless transition into the labor market.

Another recommendation is to classify the pre-admission earnings element as a skill transferability factor or as a core human capital factor. Like the EE’s need for Canadian experience, the government may provide points based on the salary criteria of the candidate’s home country for applicants without any prior Canadian work experience.

Further Details

Australia has a more rigid linguistic ability point system than Canada. Canada should think about adopting Australia’s stringent language competence point system to enhance the EE. This policy change may incentivize applicants to improve their language proficiency before immigration, which would hasten integration and improve outcomes for the applicant’s spouse or partner’s job market prospects.

Recommendations made by the Business Council of Alberta

Together with experts in international finance and labor market economics, IRCC can decide how to award points and validate revenue earned abroad. This removes the elements in the CRS points-based system that are not indicative of economic potential and offers candidates without Canadian experience a great chance to dominate the immigrant selection process.

Determine whether the “Additional Points” granted to potential immigrants for economic purposes contribute to positive economic outcomes in addition to the transferability and core human capital requirements. 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.

Determine which abilities are most valuable and in demand in the Canadian economy, and then, within three years, incorporate those skills into the CRS by researching the best ways to include them in the points system. To prevent selection bias, the IRCC should study the possibility of including foreign revenue in the CRS computation in close consultation with experts, including labor economists and business executives.

Once a more sophisticated method has been shown to enhance CRS prediction of immigration outcomes and is incorporated into the points system, category-based drawings ought to be removed. Create minimal selection criteria (CRS cutoffs) that surpass the Express Entry program’s basic eligibility requirements after the CRS has been improved. Utilize this criterion to ensure that, even if immigration targets increase, the emphasis remains on the caliber of applicants and the expansion of the pool of qualified applicants.

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 support a liberal Democratic Society

What is the Express Entry System?

The Express Entry system is a federal online application system for economic immigration that the Canadian government utilizes to handle and process skilled worker applications for permanent residency.

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

Using the Express Entry system, Canada hopes to bring in 11,770 new permanent residents by 2024, according to the most recent annual immigration levels plan available. Canada can adjust its immigration selection procedure to better suit the demands of its economy and society by improving the CRS calculator.

These prospective changes demonstrate Canada’s dedication to drawing and keeping talented individuals from all over the world, enhancing its standing as a global leader in immigration. Updates to the CRS calculator represent Canada’s proactive attempt to streamline its immigration procedures for the benefit of both newcomers and the nation overall, as they are investigated and perhaps put into effect.