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Highlights: Changes to Canada’s Express Entry System in 2025

• IRCC is set to implement new changes to Canada's Express Entry system in 2025.
• According to the latest changes, Express Entry candidates with a valid job offer will no longer receive CRS points.
• The Federal government will increase the overall admission targets to 124,590 for the federal economic programs.
• The Federal High Skilled Allocations will be replaced by two new categories: Federal Economic Priorities and In-Canada Focus.

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Changes that will affect the Express Entry System in 2025

Given below are some of the major changes that will impact the Express Entry system this year, in 2025:

 

Increase in the Immigration Targets  

The Express Entry system will increase the immigration targets this year. The admissions for the Federal economic programs will be increased to 124,590. However, the overall immigration levels will decrease by 20% compared to 2024. The overall PR admissions under the Federal High-Skilled (FHS) allocation will also increase to 31.5%. With all the above changes, the Express Entry pathway is set to play a major role for skilled workers looking to migrate to Canada through the program.

 

“NO” CRS points for Job offers

The Canadian Immigration Minister announced the removal of CRS points for Express Entry applicants with a job offer. The announcement was made in December 2024 and will be effective starting in the spring of this year. Until the new rule is implemented, candidates can score up to 50-200 additional points under the Express Entry program for having a legit job offer. However, removing the extra points may result in a drop in the CRS scores of most candidates. Express Entry applicants can score points on other factors such as age, work experience, language proficiency, etc.

 

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Federal Economic Priorities and In-Canada Focus to Replace Federal High Skilled (FHS) Allocations

Two new categories will replace the Federal High Skilled Allocations, the Federal Economic Priorities, and In-Canada Focus.

 

The table below shows the subcategories, the total number of allocations, and the candidates that will be accepted under each of these categories:

Category	Allocations under Express Entry	Candidates considered under this category
In-Canada Focus	82,890	Candidates from Express Entry-aligned PNP, Canadian Experience Class (CEC), Federal Skilled Worker Program (FSWP), Federal Skilled Trades Program (FSTP).
Federal Economic Priorities	41,700	Candidates who receive nominations under category-based selections meet Canada's labor market needs and demographic goals. Priority would be given to the Healthcare and Trade occupations and French language proficiency.

 

 

More Priority to be given to Category-based selections

This year, the IRCC aims to focus on category-based selections that are aligned with Canada's labor market priorities. The IRCC has set the below categories as a priority for the Immigration Levels Plan of 2025-2027:

• Healthcare occupations
• Trades occupations
• French-language proficiency

IRCC will likely hold more draws targeting the above categories, focusing equally on the French language proficiency category. The overall immigrant admissions for the French category will be set at 8.5% and 9.5% in 2025 and 2026, respectively.  

 

The six main categories for the Express Entry category-based draws are as follows:

• Healthcare occupations
• Science, Technology, Engineering, and Mathematics (STEM) occupations
• Trades occupations
• Transport occupations
• Agriculture and Agri-food occupations
• French language proficiency

 

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Highlights: New US consulate office opened in Bengaluru, India

• The US Consulate General has opened a new office in Bengaluru on January 17, 2025.
• The Consulate is set to function with limited staff until a permanent facility is confirmed.
• The new facility is aimed at facilitating an easy visa process for US visas for Karnataka residents.
• This move marks an important step in shaping economic and diplomatic ties between India and the US.

 

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New US Consulate Office in Bengaluru

On January 17, 2025, the US opened a new consulate office located at JW Marriott Hotel on Vittal Mallya Road. The office was inaugurated by the US Ambassador Eric Garcetti, External Affairs Minister S. Jaishankar, and Karnataka Chief Minister Siddaramaiah.

The new consulate is temporarily set to function with limited staff until permanent staff is recruited. This new office is aimed to help Karnataka residents, especially students and working professionals willing to apply for US visas who make up around 37% of India’s software exports to the US.

 

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India strengthening diplomatic bonds with the US

The opening of the new consulate office marks a crucial step in strengthening diplomatic bonds with the US. This move is likely to enhance ties in education, technology, trade, and other sectors.

 The External Affairs Minister S. Jaishankar announced that India is also planning to open a consulate office in Los Angeles, reflecting mutual engagement between the two countries. Jaishankar is also hoping to set up student exchange programmes and joint campuses as a step to overcome “hesitations in history”.

 

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Highlights: Tax Changes in Canada affecting Start-up visa applicants in 2025

• Canada is planning to introduce several tax changes that will impact Start-Up visa applicants in 2025.
• The Canada Revenue Agency (CRA) will digitalize all new updates for most business correspondence.
• Existing and new business registrations in Canada will be affected by the new changes.
• The new changes are to be effective from spring 2025.

 

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Major tax changes in Canada 2025

 

According to recent news, Canada will introduce a number of major tax changes in 2025, which is likely to impact entrepreneurs willing to apply for the Canada Start-Up Visa program this year. The following are the key tax changes to be introduced in 2025 in Canada:

 

Transition to Online Mail: The Canada Revenue Agency (CRA) is planning to make online mail as the default process for business correspondence. CRA will announce the major notices and updates via the My Business Account Portal. This will be applicable for existing and new business registrations as well as businesses represented via the “Represent a Client” service. Candidates must make sure to keep their email address up-to-date in “My Business Account” to receive updates on time.

 

New Inclusion Rate for capital gains: The CRA is awaiting parliamentary approval to introduce new inclusion rate for capital gains. The new changes will increase the inclusion rate for capital gains, affecting selling prices for shares. The CRA will also provide updated forms for corporations, trusts and individuals from January 31, 2025. The new change will also include penalties for applications filed after March 03, 2025 and relief for arrears interest.

 

Changes in Trust Reporting Requirements: The exemption policy restricting bare trusts from filing T3 Income Tax and Information Return for the 2024 tax has been extended by the CRA. Other trusts are required to update reporting requirements including filing T3 return with Schedule 15 and complying with specific CRA requests for trust information.

 

Canada Pension Plan Enhancements: The Year’s Maximum Pensionable Earnings (YMPE) will increase to CAD 71,300 in 2025 while the Year’s Additional Maximum Pensionable Earnings (YAMPE) is set to be at CAD 81,200. Candidates earning between CAD 71, 300 and CAD 81,200 are subjected to CPP2. The payroll system should be updated by both employers and employees so that the new changes would show. Entrepreneurs must comply with these rules while recruiting members to avoid penalties.

 

Enhanced Digital Services: The digital platforms are being upgraded to improve user experience for businesses. The new changes include improved navigation and layout of the ‘My Business Account’ and ‘Represent a Client’ Portal, new notification for account changes and payments. The updates also include tools like the Scientific Research & Experimental Development (SR&ED) Self-Assessment Tool to ease the process of claiming tax credits.

 

Updates to Filing Information Returns: Starting from January 2025, candidates submitting tax returns must follow the updated guidelines, which include limiting submissions to a single type of return and notifying businesses in case of discrepancies before filing.

 

Administrative Relief for T4/T4A Reporting: Candidates who do not have a dental coverage plan under the Canadian Dental Care Plan (CDCP) can now keep the box for T4 and T4A slips unchecked for 2024 tax year. However, entrepreneurs must make sure to update their payroll systems for these changes to show.

 

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Highlights: Cap count for additional H-2B visas reached for the first half of FY 2025

• The USCIS reached the cap count for additional H-2B visas for the first half of Fiscal Year 2025.
• The additional cap targeted to welcome 20,716 returning workers to the US in 2025.
• The final petitions for additional H-2B visas were received on January 07, 2025.
• Petitions are still being accepted for H-2b non-immigrant workers for the additional visas allotted to certain countries.

 

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US H-2B visa cap reached for the first half of FY 2025

The USCIS has recently announced that it has received enough petitions for the additional 20,716 H-2B visas allotted to returning workers, thereby reaching the H-2B visa cap for the first half of Fiscal Year 2025. January 07, 2025, was the final date to receive H-2B visa petitions.

 

The additional H-2B visas were allotted under the H-2B Supplemental Cap Temporary Final Rule which was published on December 02, 2024. These additional visas were introduced to invite returning workers who had start dates on or before March 31, 2025.

 

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USCIS is still accepting petitions from select countries

 

The USCIS is still open for H-2B non-immigrant workers for the additional 20,000 visas reserved for workers from Costa Rica, Colombia, El Salvador, Ecuador, Haiti, Guatemala, and Honduras.

 

Workers from these countries whose start dates are on or before March 31, 2025, and are exempted from the returning worker requirement can submit petitions to the USCIS. Applicants under the 20,716 H-2B visa category who were unable to submit the petition this time can apply under the country-specific visa allocation.

 

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Highlights: Canadian employment rose by 91,000 as of December 2024

• The latest StatCan reports revealed that employment in Canada rose by 91,000 in December 2024.
• The employment rate in Canada increased to 60.8%, marking a 0.2% rise.
• Canada’s unemployment rate came down to 6.7% after a decline of 0.1%.
• Full-time employment in Canada rose by 56,000, with a 0.3% increase as compared to 2023.

 

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Rise in employment in Canada in December 2024

 

According to the latest StatCan reports, employment in Canada was up by 91,000, recording an increment rate of 0.2%. The current employment rate in Canada is 60.8%, as of December 2024 reports.

 

Canada reported a decline of 0.1% in unemployment, bringing down the current unemployment rate to 6.7%. The year 2024 ended with 413,000 more people working in the country as compared to the figures reported at the beginning of the year.

 

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Canadian employment rises across industries and the core-aged population

 

StatCan reports revealed an increase in employment of 30,000 workers among core aged men. Employment among core aged women increased by 21,000 in Canada, as of December 2024.

 

The major industries in Canada which had employment gains as of December 2024 are listed in the table below:

 

Industry	Increase in employment	% of increase
Educational Services	17,000	1.10%
Healthcare and Social assistance	16,000	0.50%
Transportation and warehousing	17,000	1.60%
Finance and real estate	16,000	1.10%

 

Employment rates across Canadian provinces

Among all the Canadian provinces, Alberta reported the highest employment gain as of December 2024. The table below provides details of the employment rates across Canadian provinces as per December 2024 data:

 

Province	Increase in employment	% of increase
Alberta	35,000	1.40%
Ontario	23,000	0.30%
British Columbia	14,000	0.50%
Nova Scotia	74,000	1.40%

 

 

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