Canada’s digital nomad program could attract tech talent – but would they settle down?
Digital nomad programs have proliferated in recent years. Now, Canada is seeking to use the idea to attract highly skilled tech workers. (Shutterstock)
Hari KC (external link) , Anna Triandafylliodu (external link) , Toronto Metropolitan University (external link)
Over the summer, the Canadian government unveiled its Tech Talent Strategy (external link) , which aims to attract global tech workers to come to Canada. Promoting Canada as a destination for digital nomads is one of the four key pillars of the strategy.
Though full details are yet to be revealed, only a well-calibrated policy — attuned to the changing conceptions of work and employment — can help Canada develop a high-skilled workforce and prevent unintended consequences.
Digital nomads are location-independent (external link) workers who use technology to do their jobs remotely, travelling to different countries for brief periods. Several countries have introduced (external link) new programs to attract digital workers over the past few years.
Canada’s new digital nomad program is part of the government’s broader vision to fulfil in-demand jobs and attract the talent (external link) necessary to sustain future economic growth.
The government expects that the (PDF file) digital nomads (external link) coming to Canada will seek employment with Canadian companies (external link) while here, leading to them eventually seeking permanent residency and help Canada (PDF file) retain tech talent (external link) . But Canada has work to do to clarify how tax and social benefits programs would apply to digital nomads.
Canada’s approach at odds with digital nomadism
The government’s assumption that the digital nomads will find jobs in Canada and become permanent residents contradicts the notion of digital nomadism. It is naïve of the government to take it for granted that while here they would choose to permanently settle down.
But within Canada’s control, there are troubling shifts (external link) in our overall citizenship and immigration model. Inequalities connected to its colonial nature (external link) have left growing numbers of residents without citizenship or even a pathway to it.
Annual immigration levels, for example, only represent those accepted as permanent residents and obscure the number of those admitted to Canada under less secure conditions.
This has occurred thanks to under-discussed but at times controversial shifts (external link) from permanent to temporary or multi-step migration (external link) .
These shifts can be obscured by focusing primarily on the naturalization process and the sentiments some attach to it rather than the larger settler colonial landscape of migration and immigration and its relationship to citizenship and belonging at each stage.
The government’s assumption that digital nomads will settle in Canada is out of step with the notion of digital nomadism. (Shutterstock)
The government also expects digital nomads to seek employment with the local Canadian employers. However, digital nomads by definition are either paid employees working for companies based in other countries, or they are simply independent contractors or entrepreneurs. On the contrary, digital nomads are usually not allowed to work for any local employers in their destination countries. The country of residence and the country of work are principally different.
Yet, the decision to migrate — where to go and how long to stay — is often a complex process (external link) . And, some digital nomads may eventually decide to settle in Canada. Again though, Canada may not be the endpoint (external link) of their journeys.
Can Canada be an attractive destination?
Many countries (external link) around the world have introduced digital nomad visas (external link) — usually some sort of hybrid (external link) between a tourist and temporary work visa. Merely creating a new temporary resident category (external link) is not enough to make Canada a desirable destination for digital nomads.
If Canada seriously aims to attract digital nomads, it has leeway. A 2022 report published in the United Kingdom ranked Canada the No. 1 destination (external link) for digital nomads among 85 countries.
Digital nomadism exists in a sort of “nebulous space” (external link) between work-focused migration and lifestyle-related mobility. It goes against the traditional notions of place-based work, migration, taxation and citizenship. Governments must make policies in ways that align with those changing realities.
Canada could set an example for others to follow by co-ordinating its digital nomad program with policies in taxation and social protection.
In Canada, the government should clarify how tax and social benefits programs would apply to digital nomads. For example, the Canadian government taxes any foreigners staying here for more than 183 days (external link) . The government would need to clarify whether digital nomads would be taxed or given tax breaks in an effort to incentivize them to stay. If digital nomads are taxed, would they be allowed to access Canada’s social welfare system in the same way as any other resident?
Caution and clarity
Not all digital nomads are high-income earning transnational workers in pursuits of the freedoms and privileges that come with remote work. The realities of day-to-day life are complex even for digital nomads who are from the western world, but especially more so for those who are women or from the Global South (external link) . A new digital nomad program would need to address such intersectional challenges.
Digital nomadism goes against the traditional notions of place-based work, migration, taxation and citizenship. (Shutterstock)
Rhetoric around attracting and retaining tech talent is one thing, but implementing it demands that the government clarify and adjust its policies in many other areas such as taxation, social protection and health care.
The government’s vision for retaining the tech talent in Canada is not straightforward either. Compared to Canada, the tech industry in the United States can offer high salaries (external link) . Digital nomads would potentially consider financial factors before deciding to seek employment with the Canadian tech companies.
If a large number of digital nomads are locally employed as expected, the Canadian tech industry would naturally become more competitive. Inviting international high-tech workers to the Canadian tech industry could inadvertently sideline local talent (external link) .
Research shows that digital nomads tend toward peripheral “exotic” locations (external link) with high-speed internet and a lower cost of living than their home country. As seen in places like Mexico City (external link) , the surge of digital nomads can price out local communities (external link) .
At a time when Canada is facing a housing crisis (external link) , such a program might make the situation even worse if not done with due diligence.
The government appears to be conflating a digital nomad with a high-tech remote worker. The focus on attracting tech workers could embed inequalities into the program. Canada’s preference is only for the high-tech sector (external link) where women constitute only 26.7 per cent of the global workforce.
Digital nomads are not all high-tech workers. They also work in a range of digital-intensive sectors, such as marketing, media, writing, tutoring and accounting.
Canada can play a leading role in developing digital nomad policies. In the global competition for talent, an evidence-based digital nomad program could meet Canada’s immigration priorities while showcasing Canada as a destination for global talent.
Hari KC (external link) , Research Fellow, Canada Research Chair (CERC) in Migration and Integration Program, Toronto Metropolitan University (external link) ,
Anna Triandafyllidou (external link) , Canada Research Chair (CERC) in Migration and Integration Program, Toronto Metropolitan University (external link) .
This article is republished from The Conversation (external link) under a Creative Commons license. Read the original article (external link) .
