Canada’s immigration system could need a major redesign to restore its focus on skilled workers, economic contribution and long-term population stability, according to a new report from the Royal Bank of Canada (RBC).
The report argues that rapid population growth between 2022 and 2024, followed by tighter immigration policies, has created uncertainty for newcomers, employers and Canada’s labour market. It also questions whether Express Entry’s category-based selection system is still delivering the strongest economic outcomes and recommends returning to a more predictable, points-focused approach.
RBC Says Canada’s Immigration Strategy Has Lost Its Edge
RBC’s latest immigration report argues that Canada’s immigration system has become less predictable after years of rapid policy changes and shifting population targets.
According to the report, Canada added roughly three million migrants between 2022 and 2024, representing nearly a decade’s worth of immigration compressed into just three years.
The report says this period of rapid expansion was followed by tighter temporary resident controls, lower immigration targets and a population slowdown, creating instability for newcomers, businesses and educational institutions.
RBC Wants Express Entry to Return to a Stronger Points-Based System
One of the report’s biggest recommendations focuses on Express Entry.
RBC argues that the federal immigration system has gradually moved away from its original goal of selecting candidates with the strongest long-term economic potential by introducing targeted category-based invitation rounds.
Instead, the report recommends returning Express Entry closer to a traditional points-based selection system.
RBC also notes that candidates selected through Express Entry have historically earned 30% higher median earnings after three years compared with immigrants admitted through the Provincial Nominee Program, highlighting the economic strength of the federal selection model.
What Changes Is RBC Proposing?
It’s important to note that these are recommendations, not new Canadian immigration rules.
RBC recommends:
- Returning Express Entry closer to a pure points-based selection system.
- Removing category-based invitation rounds.
- Giving provinces greater responsibility for addressing regional labour shortages.
- Creating stronger pathways from temporary work to permanent residence for highly skilled workers.
- Making Canada’s population growth more predictable.
At this stage, none of these recommendations have been adopted by IRCC.
RBC Recommends Stabilizing Population Growth at Around 1%
Another major recommendation is maintaining Canada’s population growth at approximately 1% annually.
RBC argues that Canada needs a more balanced immigration strategy that avoids dramatic swings between rapid expansion and restrictive policy changes.
The report connects this recommendation to challenges involving housing, infrastructure, labour shortages and economic planning.
At the same time, RBC emphasizes that immigration remains essential because Canada’s population is aging, deaths are increasingly outpacing births, and the country still needs newcomers to support long-term economic growth.
Report Highlights Frequent Immigration Policy Changes
RBC also raises concerns about how quickly Canada’s immigration policies have changed in recent years.
The report says international students experienced more than 25 rule changes over roughly two years, creating uncertainty for students and educational institutions.
According to RBC, these changes were followed by more than 20,000 job losses in Canada’s post-secondary education sector.
Rather than arguing against reforms, the report suggests that Canada needs more stable and predictable immigration policies moving forward.
RBC Wants Provinces to Play a Bigger Role
The report recommends giving provinces greater responsibility for responding to local labour shortages instead of relying heavily on federal Express Entry categories.
RBC argues that provincial governments have a better understanding of regional workforce needs and are better positioned to identify occupations facing shortages.
Under this approach, provinces could expand their role in selecting immigrants while supporting credential recognition and regional employment initiatives.
A New Two-Step Immigration Pathway Could Be Created
Another recommendation involves rebuilding a stronger temporary-to-permanent immigration pathway.
Under RBC’s proposed model, highly skilled workers could first enter Canada through temporary work permits before transitioning to permanent residence after demonstrating their contribution to Canada’s labour market.
The report argues this approach would give Canada more information about a worker’s skills and employment record before making permanent immigration decisions.
However, IRCC has not announced any new program implementing this recommendation.
What Does This Mean for Express Entry Candidates?
For people preparing an Express Entry profile, RBC’s report should be viewed as a policy discussion rather than an immediate immigration change.
IRCC continues to operate Express Entry through general, program-specific and category-based invitation rounds.
Candidates should therefore continue focusing on improving their CRS score, language results, education credentials and eligible work experience under the current immigration rules.
Could Category-Based Express Entry Draws Be Removed?
At the moment, no.
Although RBC recommends removing category-based draws, the Government of Canada has not announced any plans to eliminate healthcare, French-language, trades or other category-based invitations.
These categories remain part of the current Express Entry system.
Why This Matters for Indian Applicants
Indian applicants represent one of the largest groups using Canada’s economic immigration pathways, including Express Entry, Provincial Nominee Programs, study permits and work-to-PR routes.
If future governments eventually move toward a stronger points-based system, factors such as language proficiency, education and skilled work experience could become even more important.
For now, however, applicants should continue planning under the existing IRCC rules.
What Applicants Should Do Now
Candidates should continue preparing their immigration applications based on the current Express Entry framework rather than waiting for possible future reforms.
Useful priorities include:
- Improving IELTS or CELPIP scores.
- Strengthening education credentials.
- Gaining eligible skilled work experience.
- Exploring Provincial Nominee Program opportunities.
- Monitoring official IRCC announcements for confirmed policy changes.
Key Recommendations at a Glance
| Recommendation | Current Status |
|---|---|
| Return to a stronger points-based Express Entry system | Recommendation only |
| Remove category-based draws | Recommendation only |
| Stabilize population growth around 1% | Recommendation only |
| Expand provincial role in labour shortages | Recommendation only |
| Strengthen temporary-to-PR pathway | Recommendation only |
Frequently Asked Questions
No. RBC has recommended removing category-based draws, but IRCC has not announced any such change.
No. The report contains policy recommendations and does not change Canada’s immigration rules.
RBC recommends stabilizing Canada’s population growth at approximately 1% annually.
The report says Canada added roughly three million migrants during that period.
Yes. The report recommends giving provinces greater responsibility for addressing regional labour shortages.
No. These remain recommendations and are not current government policy.
Fact-Checked: All data, statistics and recommendations attributed to Royal Bank of Canada (RBC) in this article are based on the official "A Smarter Immigration Strategy" report published by RBC Thought Leadership. References to Express Entry, category-based invitation rounds and current immigration rules have been cross-checked against official IRCC information available at the time of publication. This article has been reviewed to ensure no government policy decisions, official quotes, dates or statistics have been fabricated, altered or misrepresented.
Disclaimer: Immigration programs, eligibility requirements and government policies can change. Applicants should always verify the latest information directly with the Government of Canada before making immigration decisions. This article is for informational purposes only and does not constitute legal or immigration advice.
