With new caps on foreign workers, particularly through the Temporary Foreign Worker Program (TFWP) and International Mobility Program (IMP), employers need to rethink their workforce planning strategies. Understanding the new restrictions and limitations and how to transition temporary residents into permanent roles will be crucial.
The 2025-2027 Immigration Levels Plan reflects a significant shift in Canada’s approach to immigration, driven by economic pressures, housing shortages, and political calls for a more controlled influx of foreign workers. These changes present new challenges for employers that rely on foreign talent to meet labour demands.
Greenberg Hameed has prepared a deep-dive analysis to assist employers in navigating these new regulations and ensure they can continue to develop effective hiring strategies and workforce plans.
One of the most significant changes is the introduction of caps on foreign workers, particularly through the International Mobility Program (IMP) and the Temporary Foreign Worker Program (TFWP). Starting in 2025, IMP admissions will be capped at 285,750, with further reductions in subsequent years, and TFWP will be limited to 82,000 workers annually.
Key Changes for Employers:
The Plan builds on recent changes that significantly impact employers who rely on foreign talent, particularly due to new caps on admissions through the International Mobility Program (IMP) and the Temporary Foreign Worker Program (TFWP). These changes reflect a shift in Canada’s immigration policies, driven by economic pressures, housing shortages, and calls for more control over foreign worker admissions. Key points for employers include:
1. Caps on Foreign Workers: Starting in 2025, IMP admissions will be capped at 285,750, with further reductions in subsequent years, and the TFWP will be limited to 82,000 workers annually. These caps will increase competition for work permits, making it essential for employers to plan early and strategically to secure permits for critical roles. The uncertainty about how these caps will be tracked and applied further complicates workforce planning, as it is unclear whether the government will maintain a running total throughout the year or announce a cutoff once the cap is reached.
2. Stricter LMIA Requirements: Under the TFWP, more stringent Labor Market Impact Assessment (LMIA) requirements have been introduced. Employers must prove that no qualified Canadian workers are available for a position before hiring a foreign worker, adding administrative complexity to the process.
3. Changes to Intra-Company Transfers (ICT): The ICT pathway now faces tighter eligibility criteria, requiring proof that the transferred employee has specialized skills not easily found in Canada. Additionally, shorter work permit durations and increased compliance monitoring make it more difficult for employers to transfer key employees over extended periods.
4. Limits on Spousal Work Permits: New restrictions on spousal work permits may make it harder for the spouses of foreign workers to secure employment in Canada. The government has yet to clarify which occupations will be excluded from spousal work permit eligibility, leaving employers and prospective employees uncertain about the broader implications of this change.
5. Exclusion of Certain Occupations or Sectors from Caps: It is unclear which occupations or sectors might be excluded from the reductions under the caps on foreign worker programs. High-demand sectors, such as healthcare, technology, or agriculture, may be considered for exemptions due to chronic labour shortages, but official guidance has yet to be provided. This uncertainty makes it difficult for employers in these sectors to anticipate how the caps will affect their ability to bring in foreign talent.
6. Emphasis on Domestic Workforce Development: The government is encouraging employers to invest in domestic workforce development as a way to reduce reliance on foreign workers. Industries that heavily depend on temporary foreign labour, such as agriculture, construction, and manufacturing, must explore alternative strategies like domestic recruitment, training initiatives, or automation to address potential labour shortages.
What We Don’t Know:
How will the caps be applied? The government has not yet provided details on how the caps on foreign workers will be managed. Employers are left wondering whether a running total will be maintained to track admissions throughout the year or if a cutoff point will be announced once the cap is reached. This uncertainty makes it difficult for businesses to plan workforce needs in advance.
Which occupations and sectors may be excluded from the reductions? Whether certain occupations or sectors may be excluded from the capped admissions remains unclear. Sectors facing labour shortages, such as healthcare, technology, or agriculture, could potentially receive exemptions or special consideration, but no official information has been released. Employers in these sectors should stay updated to understand how the new regulations might impact their ability to hire foreign talent.
Conclusion:
The 2025-2027 Immigration Levels Plan signals a more controlled approach to foreign worker admissions, with significant changes in caps, stricter eligibility criteria, and new limitations on spousal work permits.
Employers must adapt their hiring strategies, explore alternative solutions for meeting labour demands, and stay informed about potential sector-specific exemptions. Greenberg Hameed provides a comprehensive analysis to help businesses navigate these changes, ensuring they remain compliant and competitive while continuing to bring key talent into Canada.
For a detailed discussion on how these changes could affect your workforce plans, contact Greenberg Hameed for further insights and support.
The content of this bulletin is for informational purposes only, and is not intended to provide or be relied on as legal advice.