Canada Accepts Short-term Foreign Labor contrary to Recent Norms

Canada Witnesses Unexpected Surge in Admitted Foreign Workers Amidst Reduced Temporary Resident Targets

Ottawa has experienced an unexpected surge in foreign workers admitted to the country this year, despite a decrease in temporary resident targets, following three successive quarters of decline. Whether this quarterly growth will persist remains to be seen, yet experts question the government's ability to meet its pledge of reducing the proportion of temporary residents in the overall population from slightly above seven percent to under five percent by 2027, as promised by Prime Minister Mark Carney for sustainable growth.

Prof. Marshia Akbar, director of the BMO Newcomer Workforce Integration Lab at Toronto Metropolitan University, posed an inquiry about the feasibility of hitting this target. "How can you bring down the number?" she asked.

According to recent immigration data, 176,805 work permits became effective under the international mobility program between January and March this year, marking a 10% increase from the preceding quarter. This rise bucked the downward trends that began in the first three months of 2024, when a record 230,405 work permits were put into effect. Despite the increase, the number of work permits fell steadily to 180,930 and 163,450 in the second and third quarters of last year, respectively.

In response to a growing population issue that has exacerbated housing affordability and strained government services, Ottawa has reduced its annual intake of permanent residents by 21% to 395,000 this year, with plans for 380,000 in 2026 and 365,000 in 2027. The government also vowed to reduce the temporary resident population in Canada, including international students and foreign workers, by 445,901 this year and 445,662 in 2026, while aiming for a modest increase of 17,439 in 2027 through stricter eligibility criteria for study and work permits.

The immigration department attributed the fluctuation in temporary foreign workers to program requirements, processing times, and inventories, as well as labor market conditions. In a statement to the Star, the department said it continues to monitor the effectiveness of their temporary resident reduction measures to help stay on track.

Experts cited the immigration department's recent processing delays and the delayed impact of some work permit policy changes made in the latter part of last year as possible contributors to the recent surge in work permits. Montreal-based immigration lawyer Christine Beltempo explained that some policy changes announced in the fall had transition periods and applicants had a certain window to apply before the changes took effect.

Spouses and common-law partners used to be eligible for an open work permit under less restrictive rules, but new rules issued last year now limit eligibility to spouses and partners of international students in master's programs that are 16 months or longer, doctoral programs, or select professional studies. Additionally, foreign workers now need to be employed in high-skill occupations or jobs in line with labor shortages and government priorities to qualify their other half for a work permit. Toronto immigration lawyer Lou Janssen Dangzalan noted an influx of applications before the rules changes took effect in January.

Prof. Akbar stated that the bulk of the work permit growth in the latest quarter did not originate from occupied positions explicitly categorized as higher- or lower-skilled positions, but rather in the "other occupations" category, which saw a jump of 18,680 work permits in the three months.

Last May, employment minister Randy Boissonnault tightened the rules on labor market impact assessments when approving employers' requests to bring in temporary foreign workers under the closed work permit scheme. Akbar, however, argued that the international mobility program is more "broad and opaque" because most applicants are not subject to labor market assessments by Service Canada and are off the public radar, making it easier to bring in migrant workers.

Despite the surge in work permit applications, Ottawa's five percent temporary resident reduction target may not be feasible without further structural changes to how open work permits and education-to-work pathways are administered. To reach the five percent permanent resident target, more than simply restricting work permit eligibility or capping application intake is needed, stated immigration lawyer Lou Janssen Dangzalan. The key requirement is ensuring those who are in Canada will leave when their legal status expires.

Immigration officials noted that it will take time to see the results of some of the temporary resident reduction measures, including recent changes to work permits for spouses of workers and students in January and eligibility for post-graduation work permit rules in November.

The surge in foreign workers admitted to Canada this year contradicts the reduction in temporary resident targets, a trend that has been continuing for three successive quarters.
Experts, including Prof. Marshia Akbar from the BMO Newcomer Workforce Integration Lab at Toronto Metropolitan University, question the government's ability to meet its pledge of reducing the proportion of temporary residents in the overall population.
The immigration department has reduced the annual intake of permanent residents by 21% to 395,000 this year, but they have also vowed to reduce the temporary resident population, including international students and foreign workers.
Recent data shows a 10% increase in work permits under the international mobility program from the preceding quarter, bucking the downward trends that began in the first three months of 2024.
Experts attribute the recent surge in work permits to program requirements, processing times, and inventories, as well as labor market conditions, and have pointed out the immigration department's recent processing delays and delayed impact of some work permit policy changes.
To reach the five percent temporary resident reduction target, more than simply restricting work permit eligibility or capping application intake is needed, stated immigration lawyer Lou Janssen Dangzalan, implying that ensuring those who are in Canada will leave when their legal status expires could be a key requirement.