Question Period Note: Foreign Credential Recognition

Canada’s persistent underutilization of internationally trained professionals is negatively impacting productivity, economic growth and the ability to meet labour market needs due, in part, to inefficient foreign credential recognition (FCR), which can be lengthy, complicated, and costly.

• The underutilization of internationally trained professionals is affecting Canada’s productivity, economic growth and the ability to meet labour market needs.

• Foreign credential recognition—or FCR—is a significant barrier for internationally trained professionals who have come to Canada to work in regulated occupations, such as doctors, nurses and engineers, or compulsory trades, like electricians.

• While provinces and territories are largely responsible for FCR, the Government of Canada’s Foreign Credential Recognition Program is helping to make FCR processes faster and more efficient.

• Since 2018, the Program has directly supported nearly 40,000 internationally trained professionals through FCR loans and employment supports, while thousands more have benefited from improvements to FCR systems and processes.

• Our investments are helping to support the labour market integration of internationally trained professionals so that they are able to fully use their talent and qualifications.

FCR aims to protect the health and safety of Canadians and verify that the knowledge and skills acquired outside of Canada are comparable to Canadian standards.

In Canada, outside of a few federally regulated occupations, FCR and licensure are provincial and territorial responsibilities that are often further delegated through legislation to regulatory authorities. Each regulatory authority is responsible for establishing the education, training, and licensing standards for the profession in its jurisdiction.

Internationally trained professionals must have their credentials assessed and obtain licensure or certification before they can practice or use the title designated for a given regulated occupation.

Through the Foreign Credential Recognition Program (FCRP), the Government of Canada helps to develop and strengthen Canada’s foreign credential assessment and recognition capacity, contributes to improving labour market integration outcomes of internationally trained professionals, and enhances labour mobility in targeted occupations and sectors.

The FCRP is a contributions program that supports the labour market integration of internationally trained professionals by providing funding to provinces and territories, regulatory authorities and other organizations to:
· improve FCR processes to make them faster and more efficient;
· provide loans and support services to help internationally trained professionals through the FCR process; and
· provide employment supports, such as training, work placements, wage subsidies, mentoring and coaching, to help internationally trained professionals gain Canadian work experience in their field of study.

The Program also supports collaboration between federal, provincial and territorial governments to improve FCR across Canada by sharing information and best practices and promotes the implementation of Chapter Seven of the Canadian Free Trade Agreement to facilitate labour mobility for certified workers.

Budget 2024 provided an additional $50 million over two years starting in 2024-2025 for the Program, with a focus on the residential construction and health care sectors. This builds on Budget 2022 investments of $115 million over five years starting in 2022-2023 and $30 million ongoing for the Program, starting with a focus on supporting the labour market integration of internationally educated health professionals.

Since 2015, the Program has invested nearly $295 million in 121 projects to support internationally trained professionals.

This includes system improvement projects. For example, with FCRP support, the National Nursing Assessment Service introduced an Expedited Service in June 2023, which reduced the credential assessment process from 12 months to 6 weeks and reduced the cost from $1,250 to $750.

From 2018 to 2022, the FCRP funded 12 organizations to provide FCR loans. During this period, almost $17 million in loans were issued to over 1,800 individuals. As of April 2024, the most recent results available, 47% of borrowers completed the FCR process and 59% found employment in their field of expertise or related occupation, with a low default rate of only 3.3%.

In 2022-2023, the FCRP launched seven new 10-year FCR loans agreements totaling $43 million that are now issuing new loans. As of April 2025, over $10 million in loans have been issued to more than 1,100 individuals to help with FCR related expenses.

Results from the Program’s employment support projects that began in April 2021 are also positive. As of April 2024:
· 2,678 internationally trained professionals gained Canadian work experience in their field of expertise or alternative career;
· 2,131 found employment in their field of expertise or alternative career; and
· 1,427 completed the FCR process.

The Program supports the Government’s commitment to work with provinces, territories and regulatory authorities to improve FCR.

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