In 2024, Canada made several announcements aimed at limiting immigration, as part of the government’s response to the current housing crisis in Canada. Naturally, many of you are concerned about these announcements. So, who will actually be affected by the new measures?
No changes to IEC Canada
First of all, the good news is that no changes have been made to the International Experience Canada (IEC) program. This means if you are on an IEC Working Holiday, Young Professionals or International Co-op permit, your current permit will not be affected by the new measures.
The main thing to be aware of with IEC is that the program is now essentially back to its pre-COVID numbers, following a few years of low uptake. This means there are now more people wanting to apply than there are available spaces, and not everyone waiting will receive an invite to apply this year. For more information on how the IEC application system works, read our step-by-step guide.
Let’s take a look at the changes that have been announced so far:
Quotas for study permits
In 2024, Canada introduced the first ever cap on study permits. Initially introduced as a temporary measure, Canada has since announced the cap is here to stay. In 2025, they will offer 437,000 study permits (a 10% reduction from the number offered in 2024).
The 2025–2026 study permit quota will also require master’s and doctoral students to submit a provincial or territorial attestation letter; previously, they were exempt from this requirement.
Changes to PGWPs
Canada has made several changes to the Post-Graduation Work Permit (PGWP). First, graduates from programs at public colleges will only be eligible for a PGWP of up to three years if they graduate from a field of study linked to occupations in long-term shortage.
Second, PGWP applicants will now need to demonstrate a minimum language proficiency in French or English. From November 1, 2024, university graduates applying for a PGWP will need to prove a Canadian Language Benchmark (CLB) of level 7, and college graduates will need a CLB of level 5.
Flagpoling prohibited for PGWP applicants
As of June 21, 2024, it was announced that foreign nationals could no longer apply for a PGWP at the border, only online. This was part of an effort to reduce the number of people using borders to flagpole. Note that this change was for PGWPs only and you can continue to flagpole to activate other types of permit.
Changes to low-wage LMIA applications across Canada
Defining the terms
For a Canadian employer to hire a foreign worker, they must go through either the Temporary Foreign Worker Program (TFWP) or the International Mobility Program (IMP). The IMP includes IEC and French-speaking mobility. The following change we will discuss about LMIAs only concerns the TFWP.
For most applications under the TFWP, the employer of a foreign worker must complete a Labour Market Impact Assessment (LMIA) to be able to hire them. The employer must prove to the Government of Canada that they have initially tried to recruit a Canadian or permanent resident of Canada, but have not been successful and therefore need to hire a foreign worker. This process costs the employer CA$1,000.
What has changed with LMIA applications under the TFWP?
From November 8, 2024, the starting hourly wage for workers coming through the high-wage TFWP stream must be 20% higher than its current level (the median wage in the relevant province/territory of work). This means a greater number of jobs are expected to move to the stricter rules of the low-wage stream, and fewer positions are likely to be approved through the LMIA process.
As of September 26, 2024, certain LMIA applications in low-wage streams will no longer be processed where the unemployment rate across Canada is 6% or higher. Low wage is determined to be a wage below the median wage in the Canadian province or territory of employment.
In addition, these low-wage jobs used to allow LMIA applicants access to two-year work permits. They will be limited to one-year permits from September 26, 2024.
In Quebec specifically, there has also been a temporary stop on processing LMIA applications for low-wage positions in Montreal between September 3, 2024 to March 3, 2025. For more information, read Hiring temporary foreign workers in the province of Quebec.
Note that there are some sectors that are not affected by these changes detailed above, such as construction and health professions.
What are the consequences for working holiday makers and young professionals in particular?
For your Working Holiday or your Young Professionals permit, this change has no impact on your current permit.
However, if you were planning an LMIA application after the expiration of your current IEC permit, your application will no longer be processed if you fall into this category (low wage and in a province/territory experiencing 6% or more unemployment).
Restrictions on spousal open work permit applications
For students
Since April 30, 2024, only spouses of students studying in a master’s or doctoral degree program have been eligible for a spousal open work permit (SOWP). As of September 18, 2024, this has been restricted further.
Now, the student must be studying a master’s degree program that is at least 16 months in duration for their spouse to qualify for a SOWP. The exact date for this rule change has not been announced yet, so check the Government of Canada website regularly for updates.
For workers
On September 18, 2024, it was announced that spouses of foreign workers would be restricted in who can apply for a SOWP. Previously, spouses of workers under NOC TEER categories 0, 1, 2, 3 (and sometimes 4 and 5) were eligible for a SOWP. The new change will limit this to only spouses of workers in jobs categorised as management or professional occupations or sectors with labour shortages (aka TEER 0 or 1).
There has not yet been a date announced for this new rule to be implemented, though it is expected to be before the end of 2024. Spouses planning to activate a SOWP should do so as soon as possible to be considered under the current rule and TEER categories.
Please note that several border crossings have implemented opening hours for processing permits. Furthermore, flagpoling for any permit (including SOWP) at certain borders in Quebec is now by appointment only.
Visitors to Canada can no longer apply for work permits onshore
As of the end of August 2024, it is no longer possible for visitors (tourists) to Canada to apply for a work permit directly on Canadian territory.
If you have any questions about the changes announced, drop them in the comments below and we will try to help.
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