In the global fight for top tech talent, Canada struck the first blow against the U.S. recently. On June 27, 2023, Sean Fraser, Canada's Immigration Minister, announced a Tech Talent Strategy, which included the creation of 10,000 work permits for "H-1B specialty occupation visa holders in the US" and their family members to study and work in Canada.
Canada's H-1B Program
Starting July 15, 2023, eligible U.S. H-1B visa holders may apply for these work permits until the quota has been used up. It is unclear exactly who will be eligible to apply. The official announcement suggests that only current holders of H-1B visa may apply, but as with other government programs, the actual implementation could be different. If the intent of the program is to attract top U.S. tech talent, it does not make sense to exclude an otherwise qualified applicant just because the person does not have an actual H-1B visa stamp. Many H-1B workers are working in the U.S. based on approved H-1B status, which does not require an actual H-1B visa. Hence, it is likely that more individuals will qualify for the Canada program.
Which H-1B Workers Will Likely Apply
The Canada program has some attractive features, such as unrestricted employment authorization for both the H-1B worker and also his/her family members. Unrestricted work authorization also means that the worker must seek his/her own employment opportunities. Hence, it is unlikely to attract current American H-1B workers who have a stable and desirable position. H-1B workers who are likely to take advantage of the Canada program include:
1) H-1B workers whose maximum employment period is ending: The U.S. program only offers a maximum of 6 years of H-1B employment. An individual approaching the end of this employment period will have to leave unless they have started their green card application or have another visa option.
2) Layoff H-1B workers: Tens of thousands of H-1B workers have been laid off recently. If they are not able to find another position quickly, they may also consider the Canada option.
3) Workers who hold undesirable H-1B positions: H-1B workers who are not satisfied with their current position may also apply for a Canada work permit to seek better opportunities.
4) Remote H-1B workers: Certain H-1B employers and employees may want to have a remote work arrangement for personal, financial or other business considerations. Applying for a Canadian work permit and working remotely in Canada for a U.S. company could be an option for them.
A Lesson for the U.S.
In addition to the H-1B program, Canada has also initiated other similar programs to attract STEM and tech talent. In fact, several other developed countries have implemented similar programs. Although the Canada H-1B program is unlikely to present a major threat to the U.S., this should be a wake-up call for the U.S. immigration policy. Currently, there is no clear path for long term residency or citizenship for H-1B workers. Upon exhaustion of the H-1B employment period, they must depart the U.S. if their employer is unwilling to sponsor them for permanent residency. Worse, many highly qualified tech workers are forced to leave because they are not selected in the annual H-1B visa lottery. Congress should increase the annual H-1B cap and also implement other measures to retain top tech talent, before they move to Canada and other countries.
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Update: Canada opened up the H-1B Visa Program earlier this week. Within 2 days, all 10,000 visas have been used up as of July 17, 2023. Given the overwhelming interests, it is interesting to see if Canada might expand the program to allow more U.S. H-1B workers to apply in the future.
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