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Canada Tightens Work Permit Laws: High Refusals And Processing Times Increase

Canada is tightening its work permit laws in response to growing tensions over accommodation and public services. As processing durations for Labour Market Impact Assessments (LMIA) have almost doubled and refusal rates continue to rise, temporary international employees face increased uncertainty.

The authority is scaling back relocation numbers, citing elevated strain on infrastructure and an increasingly competitive rental market. With voluntary departures currently part of its strategy, Canada’s immigration policy is undergoing significant adjustments, leaving many potential and current international employees anxious.

Ottawa Sights Migration Levels

Current reports indicate that the Canadian government in Ottawa is actively seeking ways to reduce the number of incoming migrants. This guideline reportedly concerns the dependence on voluntary departures to achieve its desired population targets. Understanding these changing guidelines is essential for travelers considering a relocation or a prolonged stay.

A Huge Increase In Work Permit Delays

The path has become increasingly challenging for temporary international employees seeking permanent residency in Canada. In 2022, the Labour Market Impact Assessment (LMIA) procedure, a significant condition for obtaining or continuing work permits, observed drastic delays.

  • September 2023: Labour Marke Impact Assessment (LMIA) processing duration averaged 58 working days.
  • March 2025: That number almost increased to 165 working days.

On April 1, 2025, Service Canada, the agency responsible for processing LMIA applications, was still working on requests presented 12 months earlier.

Work Continuation Laws: A 60-Day Lifeline

Regardless of the delays, Canada’s immigration division allows immigrants to continue working if they obtain a Labour Market Impact Assessment (LMIA) within 60 days of applying to renew their work permits. Hence, no clear guidelines exist for individuals who forfeit their status due to prolonged wait durations, leaving several people in legal and financial limbo.

Increase In Domestic Requests And Refusals

The number of work permit requests filed within Canada has increased significantly over the past year, as has the refusal rate. Immigration officials report that these trends are partly to blame for the mounting backlog and longer processing times.

Status For Undocumented Employees

The Liberal authority had previously promised legal status to undocumented employees, increasing hopes for thousands of people who had settled without documentation. However, in an adjustment, the plan has been scaled back to apply only to specific industries, thereby restricting the extent of regularization actions.

Living without documentation is uncommon in Canada, partly because accessing public services without status is exceptionally challenging.

Immigration Becomes A Major Election Problem

After the national election booked for April 28, Prime Minister Mark Carney promised to restrict immigration conditionally, matching the developing public sentiment around accommodation affordability and access to services. This pledge could reform Canada’s conventionally more onerous regulations in the future.

What This Implies For Travelers And Temporary Employees

If you are making plans to relocate or get employed in Canada, these advancements are essential:

  • Expect longer wait times for LMIA authorizations and work permit renewals.
  • Ensure your request is complete and submitted on time to avoid forfeiting status.
  • Please check for updates regarding any policy changes from Immigration, Refugees, and Citizenship Canada (IRCC) and Service Canada.
  • Look for lawful assistance or community assistance if you are experiencing documentation problems.

Canada’s changing immigration policy reveals the growing tension between economic demands and accommodation availability. While the nation still values skilled employees, tightening laws, primarily around LMIA and status regularization, implies that short-term employees are now required to navigate a more complex and uncertain landscape.