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Amid housing shortages and service strain, Canada is slowing immigration and increasing LMIA processing times. Temporary workers now face longer waits and uncertain legal status as new policies roll out ahead of the April 28 election.
Canada is tightening its work permit rules in response to growing housing and public services pressures. As processing times for Labour Market Impact Assessments (LMIA) have nearly tripled and rejection rates continue to rise, temporary foreign workers face greater uncertainty.
The government is scaling back immigration numbers, citing increased strain on infrastructure and a surging rental market. With voluntary departures now part of its strategy, Canada’s immigration policy is shifting significantly, leaving many prospective and current foreign workers in limbo.
Ottawa Eyes Migration Levels
Recent reports indicate that the Canadian government in Ottawa is actively seeking to reduce the number of incoming migrants. This approach reportedly involves a reliance on voluntary departures to achieve its desired population targets. For travellers considering a move or extended stay, understanding these evolving policies is crucial.
A Steep Rise in Work Permit Delays
For temporary foreign workers seeking permanent residency in Canada, the road has become considerably more difficult. Since late 2022, the Labour Market Impact Assessment (LMIA) process — a key requirement for obtaining or renewing work permits — has seen dramatic delays.
• September 2023: LMIA processing time averaged 58 business days.
• March 2025: That number nearly tripled to 165 business days.
As of April 1, 2025, Service Canada, the agency responsible for handling LMIA requests, was still working through applications submitted a year earlier.
Work Continuation Rules: A 60-Day Lifeline
Despite the delays, Canada’s immigration department allows immigrants to keep working if they secure an LMIA within 60 days of applying to renew their work permits. However, no clear policy currently exists for individuals who lose their status due to prolonged wait times, leaving many in legal and financial limbo.
Surge in Domestic Applications and Rejections
The number of work permit applications filed from within Canada has significantly increased over the past year. At the same time, the rejection rate for these applications has also gone up. These trends, according to immigration officials, are partially to blame for the mounting backlog and longer processing periods.
Status for Undocumented Workers
The Liberal government had earlier pledged to offer legal status to undocumented workers, raising hopes for thousands living without documentation. But in a shift, the plan has been scaled back to apply only to specific sectors, limiting the scope of regularisation efforts.
In Canada, living undocumented is rare, in part because accessing public services without status is extremely difficult.
Immigration Becomes a Key Election Issue
Ahead of the federal election scheduled for April 28, Prime Minister Mark Carney has pledged to temporarily limit immigration, aligning with growing public sentiment around housing affordability and service access. This promise could reshape Canada’s traditionally immigrant-friendly image, signalling tighter controls in the months to come.
What This Means for Travellers and Temporary Workers
If you’re planning to migrate or work in Canada, these developments are crucial:
• Expect longer wait times for LMIA approvals and work permit renewals.
• Ensure your application is complete and timely to avoid status loss.
• Monitor updates from Immigration, Refugees and Citizenship Canada (IRCC) and Service Canada for evolving guidelines.
• Seek legal help or community support if facing documentation issues.
Final Thoughts
Canada’s evolving immigration strategy reflects the growing tension between economic needs and housing availability. While the country still values skilled workers, the tightening of rules, especially around LMIA and status regularisation, means temporary workers must now navigate a more complex and uncertain landscape.
Source: https://travelobiz.com/canada-tightens-work-permit-rules-rejections-delays-2025/
