Is Canada Sleeping on the H-1B Opportunity?

In November 2025, Ottawa announced an International Talent Attraction Strategy, with plans to create an accelerated immigration pathway for professionals working in the United States on H-1B visas.

The timing seemed ideal. The Trump administration was tightening H-1B rules, increasing costs for employers, and making it harder for foreign workers to plan their futures in the US.

But almost 12 months later, Canada has yet to launch the promised pathway.

Meanwhile, some foreign professionals who spent years building careers in the United States are already leaving, with many returning to their home countries.

Canada has a chance to attract these experienced workers who could contribute to its technology sector, research institutions, and other industries facing skills shortages.

The question is: Why is Canada taking so long to act?

The US Is Becoming Less Predictable for H-1B Workers

For decades, the United States has attracted skilled professionals from around the world with the promise of career opportunities, competitive salaries, and the possibility of eventually obtaining permanent residence.

The H-1B visa has played a major role in this system, allowing American employers to hire foreign professionals in specialized occupations.

However, policy changes under the Trump administration have made the program more restrictive and uncertain.

In September 2025, the Trump administration introduced a $100,000 fee for certain new H-1B petitions involving workers outside the United States. According to the White House, the $100,000 payment was received for over 700 petitions before a federal court struck the policy down.

However, uncertainty around this measure continues. In September 2026, President Trump extended the payment policy through September 21, 2027, despite the court ruling that makes it unenforceable.

The government also replaced the traditional random H-1B lottery with a system that gives greater weight to higher-paying positions.

Other changes have been proposed, including higher prevailing wage requirements and additional fees for employers.

All in all, these measures could make employers more reluctant to sponsor foreign workers.

Supporters argue that the changes will protect American workers and prevent employers from using immigration programs to keep wages down.

But for foreign professionals, this creates uncertainty, making it hard to know what the rules will look like a year or two from now.

Losing a Job Could Also Mean Losing the Right to Stay in the US

For H-1B workers already living in the United States, job security carries consequences beyond income.

Their immigration status is tied to their employer. This means losing a job puts their ability to remain in the country at risk.

Under existing rules, eligible H-1B workers who lose their jobs can get a discretionary grace period of up to 60 days to find another employer, change their immigration status, or make arrangements to leave.

In September 2026, the Trump administration proposed eliminating this grace period for H-1B holders and some other categories of foreign workers.

Although the proposal has not taken effect, it adds another layer of uncertainty.

In recent months, layoffs and buyouts have been common in America’s technology industry. At the same time, hiring freezes have made it more difficult to find another employer.

For someone with a spouse, children, and a home, the consequences of losing a job can be enormous. But when a layoff also threatens their immigration status, their longer-term future starts to look less clear.

Skilled Foreign Workers Are Already Leaving the United States

This uncertainty about the future is already making the US less appealing to foreign professionals.

An August 2026 report by The Straits Times highlighted that Indian and Chinese technology professionals are leaving the United States amid stricter immigration rules, layoffs, and difficulties securing employer sponsorship.

According to figures from Bengaluru-based recruitment firm Xpheno, approximately 15,100 Indian professionals returned to India from the US in 2025, compared with 9,800 in 2024 — a 54 percent increase.

Between January and September 2026, an additional 12,700 professionals left the US to return to India. The number of returning professionals is expected to exceed the 2025 total by the end of 2026.

While these figures cover all returning professionals from the US, not just H-1B holders, immigration policy still plays a key role here.

That said, tighter immigration rules aren’t the only factor. Developing countries like India and China also offer growing opportunities in technology and other advanced industries.

But these shifting trends raise an important question for Canada. If experienced professionals are already reconsidering their futures in the United States, why isn’t Canada making a stronger effort to present itself as an alternative?

These are workers who are highly skilled and have proven themselves in the labour market. Many have years of professional experience with multinational companies. They are fluent in English and have already navigated workplace culture in a Western setting.

These are the hard and soft skills that Canada is actively trying to attract through its economic immigration programs.

Yet, rather than laying out the red carpet for these workers, Canada is still exploring how best to attract them.

Canada Promised an H-1B Pathway Almost a Year Ago

There is considerable interest among US-based H-1B workers in moving north.

In July 2023, the federal government had introduced a temporary pathway for H-1B visa holders. Eligible H-1B workers could get Canadian open work permits valid for up to three years. The program reached its cap of 10,000 principal applications in just two days.

That showed clearly how quickly a dedicated Canadian pathway could attract interest.

In the federal budget in November 2025, Canada announced plans to launch an accelerated immigration pathway for H-1B visa holders working in the United States.

The stated goal was to attract skilled professionals in health care, research, advanced industries, and other key sectors. This would help address labour shortages and strengthen Canada’s economy.

In December 2025, IRCC confirmed that work on the initiative was underway and that more details would follow.

But almost a year after the original announcement, the government has still not launched an H-1B pathway or given a clear timeline for it.

Instead, IRCC is now exploring how to prioritize H-1B holders through Express Entry in 2027.

An Express Entry Category for H-1B Visa Holders – But When?

During consultations on category-based selection held earlier in 2026, the department highlighted H-1B visa holders as a potential priority, particularly those working in science, technology, engineering, and mathematics (STEM).

Unlike the 2023 initiative, which provided temporary work permits, an Express Entry category for H-1B holderswould focus on selecting candidates for permanent residence.

If this happens, it could be particularly attractive to professionals frustrated by years of uncertainty surrounding their H-1B renewals or US green card applications.

But the question remains: When? Why is this taking so long?

Canada has now spent a year discussing how to attract workers it explicitly identified as a priority in its federal budget. Even if an H-1B category were to be introduced next year, it likely won’t happen before February 2027.

Meanwhile, many H-1B workers are being forced to make tough decisions about their futures. Some are returning to their home countries. Others may be considering opportunities elsewhere.

There is no guarantee that they will still be interested in moving to Canada if or when a new pathway finally becomes available. It is also unclear whether the pathway will be available to former H-1B holders or just existing ones.

Canada Shouldn’t Assume Skilled Workers Will Wait

For decades, the United States has been a more attractive destination for many skilled foreign workers, especially in STEM. US employers offered higher salaries and career opportunities that Canada could not always match.

But the current political and policy environment in the US has created an unusual opportunity for Canada.

As foreign workers face growing uncertainty about their immigration status and future, some are reconsidering whether they want to remain in the United States.

Canada could attract these professionals by offering something increasingly difficult to find south of the border: a clear and predictable pathway to permanent residence.

Of course, Canada has its own challenges, including higher unemployment and a weaker labour market in some sectors. Tighter immigration policies over the last three years have also likely made Canada less attractive.

But Canada needs skilled professionals who can contribute to innovation, productivity, and economic growth.

The federal government has already recognized this opportunity. But it should also act while that opportunity exists.

The current uncertainty in the United States won’t last forever. And workers who are still considering leaving the US will eventually make decisions — whether to settle elsewhere or return to their home countries. The longer Canada sits on this opportunity, the more it stands to lose in this global competition for talent.