Comprehensive overview and adjustment of Canada’s work permit and immigration policies
The year 2024 has been the most significant in the past decade for changes to Canada’s immigration policies. Numerous revisions and updates to these policies reflect the federal government’s efforts to restore order in the post-pandemic era. These changes are not merely about tightening immigration and work permit policies but are a process of “calibration and correction” aimed at restoring the pre-pandemic policy framework and addressing various issues that arose during the pandemic. In this context, it is necessary to review the work permit and immigration policies introduced by the federal and provincial governments over the past month and reflect on the current problems and challenges.
Federal Work Permit and Immigration Policy Adjustments
On August 28, 2024, the Canadian federal immigration department announced the termination of the policy allowing in-country conversion of visitor visas to work permits. This policy, implemented during the pandemic, provided a quick pathway into the labour market for many visitors who were in Canada but unable to work legally. With the termination of this policy, the government clearly aims to return to more stringent visa conversion processes to ensure fairness and transparency in the immigration system. This move signals Canada’s gradual shift back to a more conventional visa and immigration management approach, reducing the confusion brought about by temporary measures during the pandemic.
Moreover, to further control the influx of foreign workers in low-wage positions, the federal government announced on August 26, 2024, that starting September 26, 2024, new tightening measures would be implemented for Labour Market Impact Assessment (LMIA) applications in low-wage categories. These measures include the following: for regions with an unemployment rate above 6%, certain LMIA applications for low-wage positions will no longer be processed; the current cap on low-wage positions will be reduced from 20% to 10%; and the maximum duration for low-wage employment will be reduced from two years to one year. These changes reflect the government’s heightened attention to the low-wage labour market during economic recovery, aiming to protect local workers from excessive competition from foreign workers.
In addition, on August 23, 2024, the Canadian government announced a policy change extending the period for Ukrainians holding study permits and work permits to apply for open work permits without employer sponsorship until March 31, 2025, with each permit lasting up to three years. The extension of this policy demonstrates Canada’s ongoing support for foreign workers from Ukraine in specific circumstances. This is not only a reaction to the global political situation but also a gesture of support for Ukrainians living and working in Canada.
Finally, on August 24, 2024, Canadian Minister of Immigration, Refugees and Citizenship, Marc Miller, announced that the temporary policy allowing students to work off-campus for more than 20 hours per week would end on April 30, 2024, and would not be extended. The government plans to adjust the limit to 24 hours per week for off-campus work for students. This change aims to balance students’ academic needs with their work rights while ensuring that local youth employment opportunities are not overly squeezed. It also reflects the government’s strategy adjustment in managing the international student labour market to provide fairer job opportunities for local students.
Provincial Work Permit and Immigration Policy Adjustments
At the provincial level, governments are also actively adjusting immigration policies to meet current labour market demands and economic challenges. On August 30, 2024, the government of Saskatchewan announced the introduction of two new talent pathways under the Saskatchewan Immigrant Nominee Program (SINP). These pathways are designed to increase the workforce in the agricultural and healthcare sectors. With an ageing population and increasing healthcare demands, the shortage of talent in the healthcare sector is becoming more acute, and agriculture remains a key pillar of the province’s economy. These policy adjustments are aimed at addressing the critical labour shortages in these sectors.
At the same time, the Saskatchewan government announced that the Hard-to-Fill Skills Pilot Program would be permanently closed as of August 30, 2024. The end of this program means that foreign workers previously applying through this route will need to find new ways to enter the Canadian labour market. To facilitate this transition, the Saskatchewan government will hold a series of information sessions from September 6 to 11, 2024, to introduce new alternative pathways, ensuring a smooth transition for the labour market and successful policy changes. These measures show the provincial government’s forward-looking approach to current and future labour market needs and its commitment to providing stable and adequate labour support for various industries within the province.
In Quebec, on August 20, 2024, the Canadian government approved the Quebec government’s proposal to temporarily freeze the approval of new temporary foreign workers in low-wage categories in Montreal. From September 3, 2024, to March 3, 2025, the processing of LMIA applications for job opportunities in the Montreal area with an hourly wage below CAD 27.47 will be suspended for six months. This measure aims to protect local workers’ job opportunities, especially in lower-wage positions, by reducing the competitive pressure from foreign workers and promoting local economic stability. Quebec’s decision reflects the province’s commitment to protecting its low-wage labour market and maintaining social and economic stability amid frequent global labour market changes.
Reflection and Review - International Factors
Globally, geopolitical tensions, regional wars, and economic instability have significantly impacted Canada’s immigration policies. Many multinational companies, due to geopolitical risks, have chosen to reduce their overseas operations and repatriate their workforce and capital to North America to minimize potential losses and uncertainties. In this context, Canada, as a stable economy, has attracted numerous companies and talents. However, the influx of these foreign companies has not fully filled the local employment gaps and has even created competition pressure in certain high-tech sectors against local talent.
Additionally, neighbouring countries have made significant reforms to their foreign labour visa policies. Coupled with geopolitical factors prompting many high-tech companies to repatriate their overseas high-tech talent back to North America, leading to phenomena known as the “Vancouver Plan” and “Toronto Plan,” which involve large-scale migration of highly skilled workers. While Canada provides a safe haven for these companies, they have not reciprocated by creating a significant number of jobs for Canadians. Instead, they have squeezed employment opportunities for recent graduates in the local electrical engineering and computer science fields, leading to a scenario where many graduates face unemployment immediately after graduation. Such a situation has compelled the Canadian government to reassess its work permit and immigration policies, seeking a balance between attracting international talent and protecting local workers in the face of increasing global competition.
Reflection and Review - Domestic Factors in Post-COVID Canada
In the post-pandemic era, Canada’s economy and labour market are undergoing rapid changes. The pace of industrial transformation is outpacing adjustments in the labour market structure, with some companies turning local job positions into remote work or outsourcing them to overseas firms, resulting in rising unemployment rates. The widespread adoption of remote work has enabled many companies to leverage global talent, which has improved efficiency to some extent but has also weakened the competitiveness of the local labour market. Additionally, the lockdown measures during the pandemic and subsequent economic recovery plans have prompted many workers to reconsider their career choices and lifestyles, further impacting the labour market.
During the latter stages of pandemic control, the federal government temporarily relaxed the entry conditions for foreign workers to address labour shortages. As a result, after the pandemic, local workers who had previously held these jobs found it challenging to return to their positions or find similar work. Many companies opted to retain foreign workers trained over the past two years because their wage levels were lower than those of local workers, and they were generally willing to accept more challenging working conditions.
More concerning is that some originally temporary visa policies intended for emergency use have been widely abused, causing the labour market to spiral into chaos beyond the government’s control. During the transition period, when the federal government was analyzing issues and formulating new strategies, the unemployment rate continued to rise due to various factors. This situation has forced the Canadian government to re-evaluate the effectiveness of its immigration policies to ensure they remain flexible and adaptable in a rapidly changing economic environment.
Conclusion
Overall, Canada’s work permit and immigration policies in 2024 are undergoing significant changes. These changes are a return to previous policies and an adaptation to new challenges. Both the federal and provincial governments aim to ensure a healthy labour market in Canada, protect the interests of local workers, and maintain a fair and orderly immigration environment. Given the combined impact of various global and domestic factors, the future direction of Canada’s immigration policies will need further observation and adjustment. In this era of change, continuous policy adjustments and updates will be crucial to maintaining the stability and competitiveness of Canada’s labour market.
