Recent changes in Canadian immigration policy, particularly in Manitoba, are significantly impacting employers’ ability to rely on temporary foreign workers. Amid longstanding housing shortages and growing infrastructure pressures, federal and provincial governments announced stricter limits on the number of immigrants and temporary residents allowed in Canada between late 2023 and early 2024 to ease strain on social resources.
According to data from the Canadian government’s website, earlier immigration targets for 2024 to 2026 projected 485,000, 500,000, and 500,000 newcomers respectively. However, revised targets released in 2024 show a sharp decrease, with 395,000 projected for 2025, followed by 380,000 in 2026 and 365,000 in 2027. Additionally, the government plans to cap temporary residents at no more than 5% of Canada’s total population by the end of 2026.
This tightening of immigration policy poses significant challenges for employers hiring temporary foreign workers. Over the past 18 months, work permit rules have become more restrictive and application processes more complex, with many programs now allowing only short-term employment. This has made recruiting and retaining temporary foreign workers increasingly difficult. Furthermore, new restrictions on post-graduate work permits—such as language requirements and field-of-study limits—have raised barriers for international graduates, a key talent source across Canada. Employers can expect a reduced pool of skilled international graduates in the coming years.
Permanent residency pathways for temporary foreign workers have also narrowed. Previously, temporary workers in Manitoba who worked full-time for six months to a year and received permanent job offers were often able to secure permanent residency. Current policy changes, however, have significantly limited these opportunities, leaving many foreign workers without a clear path to stay in Canada long-term.
In light of these developments, experts advise employers to clearly distinguish between hiring for short-term projects versus permanent roles. For permanent positions, employers must proactively evaluate and pursue permanent residency options before applying for work permits to ensure compliance with new regulations. Employers are also encouraged to enhance domestic recruitment efforts, tap into underrepresented groups in the Canadian workforce, improve wages and benefits, adopt innovative technologies including artificial intelligence, and invest in upskilling existing employees to mitigate the reduced availability of temporary foreign workers.
Immigration lawyers Jessica Jensen, Reis Pagtakhan, and Patricia Bagnas emphasize that as immigration policies continue to evolve, employers across Manitoba and Canada will need to adapt their workforce strategies to maintain competitiveness and productivity. For corporate immigration services, the MLT Aikins immigration team is available to assist.
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