A pathway to opportunity: How fair licensing can transform newcomer lives

Each year, thousands of skilled newcomers move to Canada equipped with advanced degrees, extensive professional experience, and a strong eagerness to contribute to their new home. However, many who previously worked as qualified nurses, doctors, early childhood educators, engineers, and skilled tradespeople in their nations of origin quickly realize that reviving their professional careers in Canada is far more complex than anticipated.

Typically, this happens because licensing processes are confusing, timelines are unclear, and requirements vary dramatically from province to province. Even when newcomers have the right training, they often face repeated assessments and costly exams. Add to that the barrier of ‘lack of Canadian experience’—a requirement considered discriminatory across Canada but unfortunately persists. 

As a result, many newcomers are pushed into lower-wage roles or survival jobs instead of moving into stable, well‑paid careers. For example, a nurse becomes a personal support worker, an engineer works in a warehouse, and a doctor drives a rideshare vehicle to support their family. This is where the proposed Fair Licensing Act could make a meaningful difference. 

By removing barriers and creating clear, consistent licensing pathways, the Act has the potential to resolve many of the issues newcomers face, helping them move into stable careers faster and supporting stronger long‑term settlement outcomes.

Building a fairer system: What national licensing standards could achieve

The Fair Licensing Act offers a promising solution to long‑standing credential recognition challenges. Modelled on the Canada Health Act, it would use federal funding to encourage provinces to adopt fair, transparent, and consistent licensing practices. For newcomers, this could mean a clearer path to employment and fewer unnecessary barriers. The Act proposes several key changes:

• Eliminating discriminatory ‘Canadian experience’ requirements
• Harmonizing licensing standards across provinces
• Creating transparent timelines and predictable assessment processes; requiring regulators to track and report licensing outcomes
• Ensuring newcomers receive fair, timely decisions

For internationally trained professionals, these changes could be life‑changing. Instead of navigating a maze of unclear requirements, newcomers would have access to a system that’s designed to recognize their skills and support their transition into the Canadian workforce. For Canada, the benefits are equally significant. The Act could help bring 27,000 nurses and 16,000 doctors into the healthcare system, accelerate housing construction by enabling more engineers and tradespeople to work, and boost productivity at a time when the country needs it most.

How underemployment hurts families and the economy

The impact of newcomer underemployment is felt far beyond individual households. Canada is facing urgent labour shortages in healthcare, construction, education, and the skilled trades. Yet, 640,000 skilled newcomers with degrees are working in jobs far below their skill level. 6.5 million Canadians lack access to a family doctor, but only 41% of internationally trained physicians and 37% of internationally trained nurses are licensed to work in their professions. This mismatch has real economic consequences. According to the Royal Bank of Canada (RBC), our country loses up to $50 billion every year because newcomer skills are underused. That loss shows up in slower productivity, longer wait times for healthcare, delays in housing construction, and reduced innovation across industries. Canada’s productivity is already the lowest among Organisation for Economic Co-operation and Development (OECD) nations, and foreign qualification recognition challenges are a significant contributing factor. For newcomers, the cost is personal. Families struggle financially because the primary earner cannot access the career they trained for. Children see their parents working long hours in jobs that don’t reflect their abilities. Communities lose out on the leadership, expertise, and cultural knowledge newcomers bring. And settlement agencies must support clients who feel discouraged, isolated, or unsure how to move forward. Unlocking newcomer talent isn’t therefore just an economic issue. It is a settlement issue. When newcomers can work in their fields, they build stability faster, integrate more fully, and contribute more confidently to Canadian society.

What fair licensing would mean for settlement agencies and for Canada’s future

If implemented, the Fair Licensing Act would reshape the landscape of newcomer support. Settlement agencies would be able to guide clients through clearer, more predictable licensing pathways. Newcomers would face fewer delays, fewer financial burdens, and fewer moments of discouragement. Families could build stability more quickly, and communities would benefit from the full range of newcomers’ skills. Settlement agencies could also play a key role in ensuring the Act’s success—by educating newcomers about new pathways, advocating for fair implementation, and partnering with regulators and employers to support smoother transitions into professional roles. Ultimately, unlocking newcomer talent will do more than fill labour shortages. Fair licensing will recognize newcomers’ skills, resilience, ambition, and commitment to contributing to their new communities.