Immigration, Refugees and Citizenship Canada (IRCC) data analysed by CIC News and reported by the Economic Times show that Canada is on pace to admit barely 203,000 temporary foreign workers in 2025, far below the official target of 367,750. Admissions through both the Temporary Foreign Worker Programme (TFWP) and the International Mobility Programme (IMP) have slowed markedly since new caps, higher prevailing-wage rules and a moratorium on low-wage labour-market impact assessments (LMIAs) were introduced earlier this year.
Between January and August 2025, only 154,515 foreign workers entered Canada—43,315 under the TFWP and 111,200 via the IMP. If current trends hold, the year-end total would mirror the government’s reduced 2026 ceiling of about 230,000 temporary workers. The slowdown is part of a multi-year strategy to bring the overall temporary-resident population down to five per cent of Canada’s total population by 2027, alleviating pressure on housing, health care and public transit in major cities.
![Canada projects sharp shortfall in 2025 foreign-worker arrivals]()
For employers, the immediate implication is a tighter talent pool—especially in hospitality, agriculture and advanced manufacturing, sectors that rely heavily on LMIA-approved workers. Companies planning 2026 projects may wish to accelerate recruitment now, consider intra-company transfers (still exempt from the LMIA cap) or explore provincial nominee streams that lead to permanent residence. Immigration lawyers caution that stricter wage calculations and new language requirements for Post-Graduation Work Permit holders are increasing refusal rates.
Multinationals are already re-evaluating mobility budgets: some are shifting logistics and IT roles to the United States or Mexico, while others are using remote-work policies to keep talent in home countries. At the same time, provinces facing demographically driven labour shortages—Newfoundland & Labrador and Saskatchewan among them—are lobbying Ottawa to carve out regional exemptions. Whether such concessions emerge will likely depend on economic performance heading into the 2026 federal election cycle.
Between January and August 2025, only 154,515 foreign workers entered Canada—43,315 under the TFWP and 111,200 via the IMP. If current trends hold, the year-end total would mirror the government’s reduced 2026 ceiling of about 230,000 temporary workers. The slowdown is part of a multi-year strategy to bring the overall temporary-resident population down to five per cent of Canada’s total population by 2027, alleviating pressure on housing, health care and public transit in major cities.
For employers, the immediate implication is a tighter talent pool—especially in hospitality, agriculture and advanced manufacturing, sectors that rely heavily on LMIA-approved workers. Companies planning 2026 projects may wish to accelerate recruitment now, consider intra-company transfers (still exempt from the LMIA cap) or explore provincial nominee streams that lead to permanent residence. Immigration lawyers caution that stricter wage calculations and new language requirements for Post-Graduation Work Permit holders are increasing refusal rates.
Multinationals are already re-evaluating mobility budgets: some are shifting logistics and IT roles to the United States or Mexico, while others are using remote-work policies to keep talent in home countries. At the same time, provinces facing demographically driven labour shortages—Newfoundland & Labrador and Saskatchewan among them—are lobbying Ottawa to carve out regional exemptions. Whether such concessions emerge will likely depend on economic performance heading into the 2026 federal election cycle.
