Understanding recent measures to reduce temporary residents in Canada

The Canadian government has enacted measures to decrease the intake of temporary residents over the next few years, easing some of the pressures on Canadian society.

Foreign nationals who come to Canada as students, workers, or visitors are considered temporary residents. Businesses employ temporary residents to fill gaps in the labour market when they are unable to find Canadian citizens or permanent residents who are qualified and willing to work in particular occupations and sectors.

During the COVID-19 pandemic, a large number of temporary residents were allowed entry to Canada to fill labour shortages and boost the economy. Measures were implemented to enable students to work longer hours during the school year and visitors to transition to worker status from inside Canada. However, with the cost of living and housing crises becoming more acute, the government felt pressure to reevaluate temporary resident programs and policies to reduce the intake of temporary residents, ensure the sustainability of our immigration system and align immigration levels with the needs of Canada’s economy and communities.

The following changes will be affecting temporary residents:

1. Immigration, Refugees and Citizenship Canada (“IRCC”) will be reducing the intake cap of international students for 2025 and 2026 by 10% from the 2024 target of 485,000 to 437,000.
2. Master’s and doctoral students will be required to submit a Provincial Attestation Letter to confirm they fall under the international student cap allocated for the province or territory in which they will study. These students are currently exempt from this requirement.
3. The Post-Graduation Work Permit (“PGWP”) program will undergo changes to align more closely with labour market needs. As of November 1, 2024, PGWP applicants must demonstrate a minimum language proficiency in English or French, with a Canadian Language Benchmark (CLB) score of 7 for university graduates and a CLB of 5 for college graduates. Public college graduates who completed a program in a field of study where occupations face long-time shortages will remain eligible for a PGWP of up to three years.
4. Spouses of master’s degree students will only be eligible for Open Work Permits if their program of study is 16 months or longer.
5. Open Spousal Work Permits will now only be available to spouses of foreign workers in management or professional occupations or in sectors with labour shortages. Currently, the spouses of most foreign workers are eligible for open work permits, regardless of the foreign worker’s occupation, with limited exceptions.
6. As of September 26, 2024, the 10% employer cap on temporary foreign workers (“TFWs”) under the Low-Wage Stream of the TFW Program will apply across Canada. An exception will be made for employers seeking to fill labour shortages in the healthcare, construction, and food processing sectors, which will be permitted to keep a 20% cap.
7. All Labour Market Impact Assessments (“LMIAs”) approved for Low-Wage Stream positions will be limited to a work duration of a maximum of 1 year, except for occupations under the Primary Agriculture Stream.
8. The Refusal to Process policy will apply to all Census Metropolitan Areas with an unemployment rate of over 6%. An exception will be made for employers seeking to fill labour shortages in the healthcare, construction, and food processing sectors.

The challenge these changes can create

These measures pose challenges to post-secondary institutions that have become reliant on international student tuition to supplement underfunded programs and businesses that depend on TFWs to fill labour shortages for low-wage occupations outside the identified sectors. Businesses that want to take advantage of the TFW program will need to do so under the current limitations and plan for increased costs and labour needs during periods when the business will be awaiting positive LMIA decisions.

More changes are expected to further the government’s aim of reducing the influx of TFWs. Consequently, short—and long-term planning to supplement a business’ labour force with TFWs may prove to be even more challenging.

As experienced Canadian immigration lawyers, we can help you with your immigration needs. If you are interested in bringing skilled workers to Canada, get in touch with us at immigration@langfordlaw.com.