Canada’s 2025 immigration update brings tougher LMIA rules, longer processing times, and growing rejection rates for work permits. Discover how these changes affect temporary foreign workers and future migrants.

Canada’s Immigration Policy Shift: Stricter Rules for Work Permits in 2025

Canada is undergoing a major immigration policy overhaul in 2025, introducing stricter rules for temporary work permits amid increasing housing shortages and pressure on public services. The federal government is reining in migration numbers, and for thousands of foreign workers, the path to Canadian residency just got bumpier.

LMIA Delays Triple, Work Permit Rejections on the Rise

One of the biggest hurdles facing temporary foreign workers is the Labour Market Impact Assessment (LMIA) — the green light employers need to hire non-Canadians. Once a relatively swift process, LMIA approvals have slowed dramatically:

  • September 2023: LMIA processing averaged 58 business days
  • March 2025: That figure has jumped to 165 business days

As of April 1, 2025, Service Canada was still handling applications submitted up to a year ago, creating unprecedented delays.

Work Status in Limbo: The 60-Day Rule

Canada allows temporary foreign workers to continue working for 60 days while awaiting LMIA approval during work permit renewal. However, if the LMIA takes longer — which it increasingly does — there’s no official policy to protect workers who fall out of status. Many now find themselves in legal gray zones, facing lost income and potential deportation.

Ottawa’s Immigration Strategy: Voluntary Departures & Capped Numbers

To ease the pressure on housing and healthcare, Ottawa is targeting lower immigration levels, even encouraging voluntary departures. This represents a stark shift from Canada’s historically welcoming stance toward immigrants.

With the federal election on April 28, 2025, immigration has become a central campaign issue. Prime Minister Mark Carney has pledged temporary immigration caps to address affordability and infrastructure stress.

Domestic Applications Surge, but So Do Rejections

An influx of work permit applications from inside Canada is also fueling longer wait times and increased denials. Immigration authorities are tightening assessments, prioritizing economic needs and weeding out incomplete or weak applications.

Regularisation of Undocumented Workers Scaled Back

The Liberals’ initial plan to provide legal status to undocumented workers has been scaled down. Now, only those in targeted sectors may benefit, leaving others in legal limbo. With public services inaccessible to undocumented migrants, life without status in Canada is exceedingly difficult.

Key Takeaways for Temporary Workers and Aspiring Migrants

If you’re planning to live or work in Canada, here’s what you need to know:

  • Expect significant LMIA delays — plan months in advance.
  • Prepare a complete application to avoid avoidable rejections.
  • Monitor updates from IRCC and Service Canada.
  • Explore other immigration pathways like provincial nominee programs or Express Entry.
  • Seek legal guidance if you risk losing status or are undocumented.

Final Thoughts

Canada’s evolving immigration strategy in 2025 reflects growing internal pressures over housing, infrastructure, and public sentiment. While the country continues to value skilled foreign labour, stricter LMIA rules, longer processing times, and scaled-back regularization plans mean navigating the Canadian immigration system now requires more preparation than ever.