Canada Stricter Work Permit Rules 2025: Surge in Rejections and Processing Times

Canada is tightening its work permit regulations in response to housing shortages and strained public services. As of 2025, temporary foreign workers face longer processing times and increased uncertainty regarding their legal status. This shift comes just ahead of the April 28 federal election.

Increased Processing Times and Rejections

The government has decided to slow immigration numbers, citing pressure on infrastructure and a rapidly rising rental market. Labor Market Impact Assessment (LMIA) processing times have nearly tripled, leading to significant delays. For instance, in September 2023, the average LMIA processing time was 58 business days.

By March 2025, this figure soared to 165 business days. As of April 1, 2025, Service Canada was still processing applications submitted nearly a year earlier.

Changes in Immigration Strategy

Ottawa’s strategy now includes voluntary departures to meet population targets. This approach aims to reduce the number of incoming migrants, affecting those considering a move or extended stay in Canada. Understanding these evolving policies is vital for anyone planning to work in the country.

Work Continuation Rules

Despite the delays, Canada’s immigration department allows temporary workers to continue working if they secure an LMIA within 60 days of applying to renew their work permits. However, the lack of a clear policy for individuals who lose their status during lengthy wait times leaves many in a precarious situation.

Surge in Domestic Applications and Higher Rejection Rates

The number of work permit applications from within Canada has surged over the past year. Unfortunately, the rejection rate for these applications has also climbed. Immigration officials attribute this trend to the growing backlog, contributing to longer processing times.

Status for Undocumented Workers

The Liberal government had previously promised to grant legal status to undocumented workers, raising hopes for many living without documentation. However, this plan has now been limited to specific sectors, reducing the scope of regularization efforts. In Canada, living undocumented is uncommon due to the challenges of accessing public services without legal status.

Immigration as a Key Election Issue

With the federal election approaching on April 28, Prime Minister Mark Carney has pledged to temporarily limit immigration. This promise aligns with public sentiment surrounding housing affordability and access to services. Such a shift could significantly alter Canada’s traditionally immigrant-friendly reputation.

Implications for Travellers and Temporary Workers

If you plan to migrate or work in Canada, consider the following:

• Expect longer wait times for LMIA approvals and work permit renewals.
• Ensure your application is complete and submitted on time to avoid losing your status.
• Stay updated with announcements from Immigration, Refugees and Citizenship Canada (IRCC) and Service Canada for changes in guidelines.
• Seek legal assistance or community support if you encounter documentation issues.

Conclusion

Canada’s evolving immigration strategy reflects a growing tension between economic needs and housing availability. While the country still values skilled workers, the tightening of rules, especially regarding LMIA processes and status regularization, means that temporary workers now face a more complex and uncertain landscape.

Staying informed and prepared will be crucial for those navigating this new environment.