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Human Capital

Productivity depends on the skills, knowledge, and adaptability of the workforce. Canada’s immigration system, credential recognition processes, and skills pipeline all shape the human capital available to employers. In recent years, immigration policy drifted toward temporary, lower-skilled admissions, and newcomers with strong credentials routinely end up in jobs well below their qualifications. Closing that gap, and restoring a selection system built on merit, would help raise productivity.

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Human Capital Recommendations Summary

Recommendation Area of Reform Level Source Document
1 Select economic immigrants using a transparent points system (the Comprehensive Ranking System) based on education, language skills, and work experience Choosing skilled immigrants
Federal
Quality Over Quantity: How Canada’s Immigration System Can Catch Up With Its Competitors
2 Create a joint federal-provincial agency to verify foreign credentials used in immigration applications Choosing skilled immigrants
FederalProvincial
An Economic Strategy for Canada’s Next Government
3 Raise admission standards for international students Reforming temporary worker and student programs
FederalProvincial
Immigration Reform Begins with Simplifying the System
4 Preserve high-skill temporary worker streams like the Global Talent Stream while restoring pre-2020 hiring rules and updating the $1,000 employer fee for low-wage hires Reforming temporary worker and student programs
Federal
A Realistic Strategy to Wean Canadian Businesses Off Low-Skill Foreign Labour
5 Keep permanent residency rules consistent instead of creating ad hoc pathways case by case Reforming temporary worker and student programs
Federal
A Realistic Strategy to Wean Canadian Businesses Off Low-Skill Foreign Labour
6 Select more business immigrants for entrepreneurial capacity Reforming temporary worker and student programs
Federal
Quality Over Quantity: How Canada’s Immigration System Can Catch Up With Its Competitors
7 Calibrate immigration levels to GDP per capita, not admissions targets Reforming temporary worker and student programs
Federal
Optimizing Immigration for Economic Growth
8 Speed up foreign credential and work-experience recognition Recognize credentials faster
ProvincialFederal
Harnessing Immigrant Talent: Reducing Overqualification and Strengthening the Immigration System
9 Create a shared digital credential-assessment entry point across provinces Recognize credentials faster
ProvincialFederal
Harnessing Immigrant Talent: Reducing Overqualification and Strengthening the Immigration System
10 Create a database of program equivalencies so employers can judge the value of foreign credentials Recognize credentials faster
FederalProvincial
Harnessing Immigrant Talent: Reducing Overqualification and Strengthening the Immigration System
11 Let prospective immigrants begin credential assessment before arrival through pre-arrival checks and mutual recognition agreements with trusted source countries Recognize credentials faster
Federal
Harnessing Immigrant Talent: Reducing Overqualification and Strengthening the Immigration System
12 Require stronger math skills for teacher certification Improve K-12 Education
Provincial
How to Fix Math Education in Canada
13 Increase frequency and rigour of math testing Improve K-12 Education
Provincial
How to Fix Math Education in Canada
14 Ban smartphones in classrooms Improve K-12 Education
Provincial
Reversing the decline in Canadian math scores
15 Revise math curricula Improve K-12 Education
Provincial
Reversing the decline in Canadian math scores
16 Expand Canada’s Occupational and Skills Information System into a forward-looking database tracking emerging occupations Match skills to where the economy is going
Federal
2025 Labour Market Review: Trade Uncertainty, Structural Pressures, and Policy Priorities for Canada
17 Replace Employment Insurance’s regional eligibility rules with uniform national standards tied to the national unemployment rate Match skills to where the economy is going
Federal
Mending Canada’s Employment Insurance Quilt: The Case for Restoring Equity

References

Commentary 718 2025 Labour Market Review: Trade Uncertainty, Structural Pressures, and Policy Priorities for Canada Mahboubi, Parisa, and Tingting Zhang · 2026 Intelligence Memo How to Fix Math Education in Canada Stokke, Anna · 2026 Intelligence Memo How We Subverted Our Skills-Based Immigration System Green, David, Philip Oreopoulos, Craig Riddell, Mikal Skuterud, and Christopher Worswick · 2025 Special Policy Report An Economic Strategy for Canada's Next Government Lester, John · 2025 Intelligence Memo Immigration Reform Begins with Simplifying the System Mahboubi, Parisa · 2025 Intelligence Memo A Realistic Strategy to Wean Canadian Businesses Off Low-Skill Foreign Labour Skuterud, Mikal · 2025 Commentary 662 Optimizing Immigration for Economic Growth Doyle, Matthew, Mikal Skuterud, and Christopher Worswick · 2024 Commentary 654 Quality Over Quantity: How Canada's Immigration System Can Catch Up With Its Competitors Mahboubi, Parisa · 2024 Intelligence Memo A Multi-Pronged Strategy for Managing Canada’s Surging Non-Permanent Resident Population Mahboubi, Parisa, and Mikal Skuterud · 2024 Intelligence Memo Our Underemployed Economic Immigrants: How to Stop Wasting Talent Mahboubi, Parisa and Tingting Zhang · 2024 Commentary 672 Harnessing Immigrant Talent: Reducing Overqualification and Strengthening the Immigration System Mahboubi, Parisa, and Tingting Zhang · 2024 Intelligence Memo Reversing the Decline in Canadian Math Scores Stokke, Anna · 2024 Commentary 433 Mushrooms and Yeast: The Implications of Technological Progress for Canada's Economic Growth Howitt, Peter · 2015 Backgrounder 144 Mending Canada's Employment Insurance Quilt: The Case for Restoring Equity Busby, Colin, and David Gray · 2011

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