Canada Revises Immigration Policies Amid Economic Changes

Canada has a longstanding tradition of welcoming immigrants, which benefits both the economy and cultural diversity. Recently, the federal government announced several changes to its immigration policies in response to evolving economic conditions, including a slowdown in the labor market.

On September 18, 2024, the government introduced measures to decrease the number of temporary residents in the country. The Immigration, Refugees and Citizenship Canada (IRCC) aims to reduce temporary residents from 6.5% to 5% of Canada’s population by 2026. In support of this initiative, steps have been taken to manage the increase in temporary residents and to ensure that employers comply with the legal standards.

There are considerable changes to the International Student Program and the Temporary Foreign Worker Program (TFWP). Eligibility requirements for temporary work permits have been tightened, and more stringent labor market impact assessments are now in place to prevent fraud. Furthermore, the Post-Graduation Work Permit Program is being aligned more closely with immigration objectives and labor market needs. Eligibility for work permits is now restricted to spouses of master’s degree students in programs lasting at least 16 months or to spouses of foreign workers in management or professional roles.

Canada has also been dealing with increasing asylum claims. The federal government is actively addressing humanitarian responsibilities by taking action against integrity issues in the asylum system. This includes updating programs to ensure that temporary residents are supported effectively and the immigration system remains robust.

Minister of Immigration, Refugees, and Citizenship, Marc Miller emphasized the importance of maintaining the integrity of Canada’s immigration system while responsibly managing growth. The goal is to support newcomers’ success while addressing the nation’s economic needs. Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages, also stressed the role of immigration in Canada’s economic growth, warning against using temporary foreign workers to undermine Canadian labor wages.

Additionally, changes to international student policies will cap the number of study permits issued. A new cap for 2026 has been set, resulting in 300,000 fewer permits issued over the next few years. Reforms include restricting post-graduate work permits based on proficiency assessments and limiting spousal work permits to selected categories.

Canada’s unemployment rate has been growing, creating a need for recalibration of the immigration system. With multiple updates this year, the government aims to adapt to these changes while ensuring that the benefits of immigration are realized for all Canadians.