This paper offers a historical review of the evolution of the point system. It is crucial to understand the past in order to understand immigrants' current economic performance. Canada's immigration policy has evolved over time by adjusting to the economic, social and political needs of each specific period. However, the current immigration policy, in the form of the point system, is not flexible in meeting the needs of the Canadian labour market. The point system currently requires immigrants to have a high level of education and proficiency in English or French. However, research indicates that immigrans are not doing as well as expected financially. This paper will analyze and seek answers to the following research questions: Does the point system reflect the needs of the labour market and is it an effective tool for measuring the needs of the Canadian nation? The theoretical frameworks that will be used are human capital theory and labour market segmentation theory. This paper will be focusing on the relationship between Canadian immigration policy and the needs of the labour market.