Last Updated on December 17, 2024
Could a points-based immigration system be a viable option for the U.S.? Take a closer look at how it’s different than a quota system
A points-based immigration system, or merit-based immigration system, determines a noncitizen’s ability to immigrate to a country. This system considers several factors when evaluating an individual’s admissibility, including wealth, education level, language fluency, employment or job offer and connection to the country, such as family ties. Some countries also have disqualifying criteria for admissions, including a criminal record.
An in-depth overview of points-based immigration systems around the world
What countries use points-based immigration systems?
Several countries use points-based immigration systems, including:
- Canada
- Australia
- U.K.
Canada adopted a points-based immigration system in the 1960s, which is still in place today. The most recent change to Canada’s immigration system occurred in 2015 with the introduction of the Express Entry program. Express Entry is a point- and merit-based system that only processes applications for the highest-scoring applicants, providing fast-track entry into Canada for those who qualify. Express Entry also reduces application processing times to six months or less and eliminates backlogs. Applicants acquire points based on the following:
- Skills
- Experience
- Holding a valid job offer in Canada
Foreign nationals can apply for the final step of permanent residency if they receive a high enough score.
Australia introduced a points-based immigration system in the late 1980s, based on Canada’s. Australia’s program is called the SkillSelect system. Eligible applicants under the program must receive at least 60 points. Eligibility criteria include age, employment, educational qualifications, language skills and sponsorship. An additional requirement for individuals interested in certain visa categories is that they must complete a skills assessment.
In 2010, the U.K. adopted a points-based immigration system to regulate immigration for individuals outside the European Economic Area (EEA). Unlike the systems in Canada and Australia that consider personal characteristics such as qualifications and age, the UK’s points-based system is largely driven by employers. Through the U.K. system, applicants are selected mainly at an employer’s discretion rather than the government.
Differing opinions on points-based immigration
Merit-based immigration systems are controversial. Advocates argue that they reduce application processing delays, meaning applicants can enter a country and start work sooner. In the U.S., facing economic setbacks from the COVID-19 pandemic and an aging workforce, advocates say transitioning to a points-based system will provide necessary economic benefits. They add that a points-based system will work best if it accepts applicants across the entire skills spectrum rather than reserving work opportunities only for the most elite applicants.
Opponents argue that merit-based systems are driven by politics rather than neutrality. Instead of welcoming all applicants based on a quota system, they select the most “desirable” foreign nationals, which inevitably disadvantages certain individuals and groups, including middle-aged and older adults, individuals from less-developed countries, and applicants with fewer personal credentials (i.e., employment history and formal education).
Additionally, the Society for Human Resource Management (SHRM) adds that traditional merit-based systems are designed to reward individuals who follow well-traveled paths of employment rather than entrepreneurs who introduce bolder and more industry-disrupting ideas. A single “superstar” entrepreneur may generate more revenue and produce more value than groups of more traditional employees.
Introducing points-based immigration in the U.S.
Although it currently uses a quota system, points-based immigration has been a consideration for the U.S. The Trump administration proposed shifting from a quota to a points-based system, but nothing was formally implemented. In an Envoy Global study, most employers favored this transition. The study showed that 60% of employers favor moving to a merit-based immigration system rather than keeping the quota system. Employers cite increased transparency through defined selection criteria as the main advantage of switching to a points-based immigration system. They also feel that a points-based system provides greater flexibility than a quota-based system, specifically in meeting changing demands within the U.S. About 42% of employers believe that a points-based immigration system will eliminate some randomness and biases in the applicant selection process. In turn, providing more fairness to applicants.
As part of its comprehensive immigration reform plan, the Biden administration could introduce a points-based immigration system. This system aims to attract essential, skilled and seasonal workers. It would help the U.S. economy recover from the COVID-19 pandemic. Additionally, it would create a sustainable workforce to replace the nation’s aging working population.
Envoy is pleased to provide you with this information, which was prepared in collaboration with Brendan Coggan, SVP of Global Services at Envoy Global and founding partner of Corporate Immigration Partners.
Content in this publication is for informational purposes only and not intended as legal advice, nor should it be relied on as such. For additional information on the issues discussed, consult an attorney at Corporate Immigration Partners, P.C., or another qualified professional of your choosing. On non-U.S. immigration issues, consult your Envoy representative, or another qualified representative of your choosing.
