Labor shortages in Canada’s priority sectors
When immigration measures are published, the government often mentions labor shortage or priority sectors. But what are they?
Foreign workers to address labor shortages
To tackle labor shortages affecting certain sectors in Canada, many businesses turn to hiring foreign workers.
These workers typically receive a “closed” work permit valid for 12 to 36 months. Closed permits are tied to a specific employer, meaning workers cannot change companies without submitting a new work permit application.
After the initial permit, some choose to settle permanently in Canada, while others return to their home country. Regardless of their choice, this workforce helps fill positions that local hiring efforts cannot meet.
The national occupation classification (NOC)
The NOC is Canada’s reference system for occupations. It categorizes all professional activities and helps identify the classification of a job or its main duties.
In immigration contexts, the NOC is a key element. It determines whether a profession is considered “skilled” or “low-skilled.”
The NOC is structured around two main criteria: six categories Training, Education, Experience and Responsibilities (TEER) and ten broad occupational categories (BOC)
Training, Education, Experience and Responsibilities (TEER)
These categories group elements related to training, education, work experience, and job responsibilities. They are used, with few exceptions, to assess job eligibility for work permit applications.
| Categories | Skill level description |
|---|---|
| TEER 0 | Management occupations |
| TEER 1 | University education |
| TEER 2 | College diploma or apprenticeship of 2+ years |
| TEER 3 | College diploma or apprenticeship of less than 2 years, or more than 6 months of on-the-job training |
| TEER 4 | High school diploma or several weeks of on-the-job training |
| TEER 5 | On-the-job training with no formal education requirements |
Broad occupational categories (BOC)
These represent the type of work performed, the field of study required, or the industry in which specific experience is needed.
| Categories | Descriptions |
|---|---|
| 0 | Legislative and senior management occupations |
| 1 | Business, finance and administration occupations |
| 2 | Natural and applied sciences and related occupations |
| 3 | Health occupations |
| 4 | Occupations in education, law and social, community and government services |
| 5 | Occupations in art, culture, recreation and sport |
| 6 | Sales and service occupations |
| 7 | Trades, transport and equipment operators and related occupations |
| 8 | Natural resources, agriculture and related production occupations |
| 9 | Occupations in manufacturing and utilities |
In summary, TEER defines the skill level required for a job, while BOC refers to the sector of activity.
Updates are made regularly to reflect labor market changes, with major revisions every 10 years. The next revision is scheduled for 2031.
What are labor shortage or priority sectors?
Labor shortage
A labor shortage occurs when the number of job openings exceeds the number of available workers. Employers struggle to recruit qualified workers for specific roles. This shortage may stem from a lack of available personnel with the required skills or from missing specialized competencies.
For example, in the healthcare sector, demand exceeds supply due to a lack of personnel.
Priority sectors
Priority sectors are those deemed essential by provincial or federal governments. They are important to the economy but may not necessarily face labor shortages.
For instance, the agriculture sector is considered essential and has fewer restrictions. Through the agricultural stream, employers can hire temporary foreign workers, regardless of nationality, for up to 24 months.
Sectors with high demand for foreign workers
In 2021, according to Statistics Canada, about 4% of workers were temporary foreign workers. They held nearly 1 in 5 jobs in agriculture, forestry, fishing, and hunting. They also played key roles in transportation, warehousing, retail, and manufacturing.
From 2021 to 2023, 109 occupations showed significant or moderate signs of shortage. These were mainly concentrated in the healthcare sector and in trades related to transportation and equipment operation, specifically TEER 1, 2, and 3 occupations in healthcare, and TEER 2 and 3 occupations in trades, transport, machinery, and related fields.
Between 2024 and 2033, over 100 occupations are expected to face shortages. Many already show signs, such as nurses and psychiatric nurses.
Why are industries like healthcare, technology, and construction crucial to Canada’s economy?
A sector includes all industries producing a given category of goods or services. According to the North American Industry Classification System (NAICS), in November 2024, the healthcare and social assistance sector had the highest job vacancy rate, nearly a quarter of all vacancies in Quebec. The aging population increases demand for healthcare and infrastructure, such as senior residences.
Technology is a pillar of Canada’s economy, encompassing fields like AI, cybersecurity, software, and IT. Advances in automation and tech boost productivity across sectors, including construction and healthcare.
The construction sector is constantly evolving due to infrastructure maintenance and growing demand linked to population growth.
The advantage of immigrating in a priority sector
The government favors skilled foreign workers (TEER 0, 1, 2, 3) in most Temporary Foreign Worker Program (TFWP) streams. Many of these offer a pathway to permanent residence.
Applicants must apply through Express Entry to be invited to settle in Canada (outside Quebec).