New CIC News data analysed by The Economic Times shows Canada is on track to admit roughly 203,000 temporary foreign workers in 2025—45 percent below the official target of 367,750 and closer to the reduced 2026 quota. Between January and August, only 154,515 work permits were issued, indicating year-end numbers will miss programme ceilings for both the Temporary Foreign Worker Programme (TFWP) and the International Mobility Programme (IMP).
The slowdown follows a series of policy tweaks: stricter wage floors, regional Labour-Market Impact Assessment moratoria, caps on spousal open work permits and tightened eligibility for intra-company transferees. Ottawa’s broader aim is to bring the temporary-resident share of population to five percent by 2027 amid housing shortages and political pressure.
![Canada sharply pares 2025 foreign-worker intake, signalling tighter labour-stream controls]()
Indian nationals—historically the largest cohort under IMP categories such as ICTs and postgraduate work permits—will feel the pinch first. Employers must now justify higher wages and demonstrate local recruitment efforts more rigorously, elongating hiring timelines for IT and engineering talent.
Global mobility specialists recommend that Indian multinationals pursuing Canadian projects shift to permanent-residence strategies (Express Entry, Provincial Nominee Programmes) or leverage short-term business-visitor exemptions where possible. Work-permit holders already in Canada could benefit: the immigration ministry says it will prioritise pathways to PR for ‘established’ workers, potentially smoothing extensions.
While the 2025 cutback may ease public-opinion pressure, economists warn that sectors from agrifood to aerospace still face acute skill gaps that cannot be met locally, suggesting Ottawa may need to recalibrate quotas again post-2026.
The slowdown follows a series of policy tweaks: stricter wage floors, regional Labour-Market Impact Assessment moratoria, caps on spousal open work permits and tightened eligibility for intra-company transferees. Ottawa’s broader aim is to bring the temporary-resident share of population to five percent by 2027 amid housing shortages and political pressure.
Indian nationals—historically the largest cohort under IMP categories such as ICTs and postgraduate work permits—will feel the pinch first. Employers must now justify higher wages and demonstrate local recruitment efforts more rigorously, elongating hiring timelines for IT and engineering talent.
Global mobility specialists recommend that Indian multinationals pursuing Canadian projects shift to permanent-residence strategies (Express Entry, Provincial Nominee Programmes) or leverage short-term business-visitor exemptions where possible. Work-permit holders already in Canada could benefit: the immigration ministry says it will prioritise pathways to PR for ‘established’ workers, potentially smoothing extensions.
While the 2025 cutback may ease public-opinion pressure, economists warn that sectors from agrifood to aerospace still face acute skill gaps that cannot be met locally, suggesting Ottawa may need to recalibrate quotas again post-2026.
