The US government’s move to introduce a steep fee for H-1B visas could give Canadian companies an edge in attracting skilled foreign workers, but experts say Ottawa must update immigration rules to fully seize the chance, according to The Globe and Mail.
President Donald Trump signed a proclamation on Friday requiring employers to pay $100,000 for an H-1B visa. The White House says too many firms are bringing in foreign workers because they can pay them less than Americans. The visa is widely used in the tech industry to hire employees for specialized roles.
Observers warn the new cost could block some workers from entering the US and fuel international competition for talent. They argue Canada needs a smoother immigration process and a clear route to permanent residency to benefit.
“Anything that makes it more challenging for highly skilled workers to go to the U.S. means that there’s an opportunity for not only Canada, but for other countries to be a more attractive place for them to go to,” Benjamin Bergen, president of the Council of Canadian Innovators, told the outlet.. He pointed to the Global Talent Stream within the Temporary Foreign Worker Program as the best tool to bring workers in, adding that the government should look at ways to speed it up further.
University of Waterloo economics professor Mikal Skuterud said it was ironic that some have called for shutting down the TFW program, given that it could help recruit workers pushed out of the US. Conservative Leader Pierre Poilievre has urged closing the program and replacing it with one focused only on temporary farm labor. B.C. Premier David Eby has said the program should be restructured or scrapped.
{{/usCountry}}University of Waterloo economics professor Mikal Skuterud said it was ironic that some have called for shutting down the TFW program, given that it could help recruit workers pushed out of the US. Conservative Leader Pierre Poilievre has urged closing the program and replacing it with one focused only on temporary farm labor. B.C. Premier David Eby has said the program should be restructured or scrapped.
{{/usCountry}}While many economists argue the low-wage stream should be scaled back, Prof. Skuterud said the high-wage side is essential for attracting top talent quickly. “The punchline of all this is, it really does make it very clear that this is not a program you want to entirely shut down. There are parts of the Temporary Foreign Worker Program that we want to lean in on even more, I would say,” he said.
US change has revived Canada’s efforts to capture talent
The US change has revived Canada’s efforts to capture talent that might otherwise head south. British Columbia Jobs Minister Ravi Kahlon responded to Trump’s policy by calling on workers to move north. “We’re inviting tech talent, innovators, and scientists to come to B.C. and be part of building the economic engine of Canada’s new economy!” he posted on social media.
Jaxson Khan, a former policy adviser for Industry, Science and Economic Development Canada, noted major U.S. tech companies can likely absorb the fee, given how much they already spend to recruit experts in artificial intelligence and quantum computing. The White House said the fee can be waived by the Secretary of Homeland Security in cases deemed to serve the national interest.
Canada could use the moment to appeal to H-1B applicants
Even so, Khan said Canada could use the moment to appeal to H-1B applicants, as it did in 2023 when Ottawa launched a special program that drew 10,000 applications in two days. Only 1,205 ended up arriving in the first year, but Khan, now head of Aperture AI, said, “That’s still 1,200 people we didn’t have before,” per the outlet.
Immigration lawyer Meika Lalonde said Canada must make it easier for skilled workers to gain permanent residency if it wants to hold onto them. “In order for them to stay here long-term and actually bring enormous benefits to Canada through their skills and their education, we − and by we, I mean the Canadian government really has to make some fundamental changes to our permanent-residence programs to ensure that people are attracted here,” she said. Lalonde argued the government’s new categories-based selection system, which prioritizes French speakers and certain jobs, makes it harder for some skilled workers to stay.
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But some warn there could be downsides. Senator Colin Deacon said the US fee could push American employers to hire more Canadians, since they can work there under the USMCA without an H-1B visa.
“We need to consider the fact that this could disadvantage keeping really great talent in Canada, because what it means is that somebody going to the United States requiring an H1-B visa will cost US firms $100,000 a year more. But that won’t be the case for Canada,” Mr. Deacon said.