Work Permits Dropped 47% in 2025: IRCC Data

Canada’s work permit arrivals in 2025 dropped sharply by around 47 percent compared to 2024, according to official immigration data. This significant decline reflects policy changes under the Immigration Levels Plan 2025–2027 and stricter rules across major work permit streams.

In simple terms, Canada issued far fewer new work permits in 2025 due to tighter controls on temporary workers, updated LMIA rules, and changes to programs like PGWP and open work permits.

This article breaks down the numbers, explains why the drop happened, and what it means for workers and employers heading into 2026.

Canada’s Work Permit Arrivals Fell by Nearly Half in 2025

According to official immigration statistics, the number of new temporary workers entering Canada dropped significantly in 2025.

Between January and November 2025, work permit arrivals were approximately 47 percent lower than the same period in 2024, representing roughly 177,000 fewer arrivals based on IRCC data trends.

Work permits fall under two main categories:

Temporary Foreign Worker Program (TFWP): Employer-driven permits requiring LMIA
International Mobility Program (IMP): LMIA-exempt permits for specific categories

By December 2025, monthly arrivals showed:

TFWP arrivals: 2,135
IMP arrivals: 7,600
Total: 9,735

For the full year, estimates suggest:

TFWP: ~55,000 arrivals
IMP: ~154,000 arrivals
Total: ~209,000 arrivals

This is significantly lower than the 2025 target of around 367,000 temporary workers, highlighting a major policy-driven reduction.

TFWP vs IMP: What the Drop Really Shows

Temporary Foreign Worker Program (TFWP)

The TFWP saw the steepest decline in 2025.

Key policy changes include:

Caps on low-wage foreign workers
Stricter wage thresholds
LMIA refusals in regions with unemployment at 6 percent or higher

These changes reduced employer access to foreign labour, especially in lower-wage sectors.

International Mobility Program (IMP)

The IMP also experienced a noticeable drop.

This stream includes:

Intra-company transferees
Significant benefit work permits
Trade agreement workers

Even without LMIA requirements, tighter eligibility and reduced approvals contributed to lower arrivals.

Why Work Permit Arrivals Are Falling

1. Immigration Levels Plan 2025–2027

Canada reduced temporary resident targets to ease pressure on housing and infrastructure.

The plan set a 2025 worker target of around 367,000, with further reductions expected in 2026.

2. Tighter Temporary Worker Rules

New TFWP restrictions include:

Low-wage caps
LMIA refusals in high-unemployment regions (6 percent or higher)

These policies directly limit new work permit issuance.

3. Changes to Open and Companion Work Permits

Canada tightened eligibility for:

Spouses of international students
Spouses of temporary workers

This reduced the number of secondary work permits issued.

4. PGWP Reforms

Changes to the Post-Graduation Work Permit Program also impacted arrivals.

Key updates include:

Language requirements (CLB 7 for degree holders, CLB 5 for others)
Field-of-study restrictions for non-degree programs

These changes reduced eligibility for some international graduates.

What This Means for Workers and Employers

The sharp decline in work permit arrivals signals a shift in Canada’s immigration strategy.

For employers:

Hiring foreign workers is becoming more difficult
Greater reliance on domestic talent
Increased use of permanent residence pathways

For workers:

Stronger profiles are now essential
LMIA-based jobs are harder to secure
In-Canada pathways are becoming more important

For example, permanent residence pathways may become more attractive as temporary routes tighten, especially through programs like Express Entry.

Not sure which pathway fits your profile? Try the UmberApp PNP Finder for a quick eligibility check.

Overall, Canada is moving toward a more controlled and selective temporary immigration system.

Outlook for 2026 and Beyond

Based on the Immigration Levels Plan:

Work permit targets may drop further to around 230,000 in 2026

This represents a potential 37 percent decrease from 2025 targets

Future trends will depend on:

Labour market demand
Housing capacity
Economic conditions

However, current policy direction suggests continued moderation rather than a rapid increase.

Conclusion

Canada’s 47 percent drop in work permit arrivals in 2025 reflects a clear policy shift toward stricter control of temporary immigration. While opportunities still exist, both workers and employers must adapt to tighter rules, reduced quotas, and a stronger focus on long-term immigration pathways.

Frequently Asked Questions

Why did Canada see a 47% drop in work permit arrivals in 2025?
Canada reduced temporary worker intake under the Immigration Levels Plan and introduced stricter rules in both TFWP and IMP, leading to fewer approvals.

What’s the difference between TFWP and IMP?
TFWP requires an LMIA and is employer-driven, while IMP is LMIA-exempt and includes categories like intra-company transfers and trade agreements.

Are fewer work permits a sign Canada is closing immigration?
No. Canada is adjusting temporary worker levels while continuing to support permanent immigration through programs like Express Entry and PNPs.

Will work permit numbers increase in 2026?
Based on current targets, numbers are expected to decrease further in 2026, though this may change depending on labour market needs.

What is the LMIA unemployment rule in 2025?
LMIA applications for low-wage jobs may be refused in regions where unemployment is 6 percent or higher, limiting new work permits.

Is PGWP still available after these changes?
Yes. PGWP remains active, but eligibility now includes stricter language requirements and field-of-study conditions for certain programs.