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Immigration Trends in 2025: What They Mean for Employers

Release Date
2025-07-02
Media
McMillan LLP
Summary
The Canadian federal government has significantly shifted its immigration policy by announcing a target to reduce the number of temporary residents, including foreign workers, to 367,750 in 2025. Prime Minister Carney confirmed a broader goal to lower the number of work and study permit holders to under five percent of the total population by 2027. This marks a sharp departure from previous plans to increase immigration to 500,000 newcomers annually in 2025 and 2026.

These changes will affect all employers, particularly those who have relied on international students and post-graduate work permit (PGWP) holders, many of whom are no longer eligible to renew their permits. As processing times for work permit extensions now average 196 days, employers and foreign workers face significant uncertainty. While workers can maintain their status if they apply before their permit expires, they may lose access to public healthcare and cannot leave Canada without forfeiting that status.

Employers are also facing increased challenges with permit application processes, including a rise in arbitrary refusals and administrative errors from IRCC’s processing centre. These issues disrupt business operations and staffing, especially in rural areas.

At the same time, the government has intensified enforcement of employer compliance under the Temporary Foreign Worker Program. Non-compliance can lead to severe penalties, including fines up to $100,000 per violation, bans from the program, and public disclosure of violations. Proactive measures like internal audits, compliance training, and voluntary disclosures are strongly recommended.

Furthermore, the proposed “Strong Borders Act” (Bill C-2) would grant the federal government expanded powers to suspend or terminate immigration applications and modify or cancel existing permits. If passed, this legislation would significantly increase the uncertainty around foreign worker hiring.

Given these developments, employers are advised to audit their workforce to identify temporary residents, review permit statuses, and begin strategic planning to manage future immigration needs. Early engagement and expert legal support are essential to ensure compliance and business continuity in this rapidly evolving regulatory environment.
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