As of January 2025, Canada continues to hire foreign workers to address labor shortages in various sectors. However, recent policy adjustments have been implemented to balance the intake of foreign labor with domestic employment opportunities.

Temporary Foreign Worker Program (TFWP):

The TFWP remains a primary pathway for employers to hire foreign workers. To do so, employers must obtain a Labour Market Impact Assessment (LMIA), demonstrating the need for a foreign worker due to the unavailability of Canadian citizens or permanent residents for the role.

Policy Adjustments:

In August 2024, the federal government announced that it would no longer process LMIAs under the low-wage stream of the TFWP in census metropolitan areas (CMAs) with an unemployment rate of 6% or higher. This policy aims to prioritize job opportunities for local workers in regions with higher unemployment rates.

Additionally, effective January 21, 2025, there are increased restrictions on open work permits for family members of international students and foreign workers. Only spouses of international students enrolled in specific advanced degree programs, such as certain Master’s programs, doctoral programs, and select specialties like Law, Engineering, or Nursing, are eligible for a Spousal Open Work Permit.

Immigration Levels Plan:

The Canadian government has set targets for new temporary resident arrivals, including work and study permits. In 2025, the target is 673,650 new arrivals, with international students comprising 45% of this figure. This reflects a strategic approach to managing the influx of temporary residents.

Conclusion:

While Canada continues to welcome foreign workers to fill critical labor gaps, recent policy changes indicate a shift towards balancing this with domestic employment needs. Employers and prospective foreign workers should stay informed about these developments to navigate the evolving landscape effectively.