Strengthening Temporary Residence Programs for Sustainable Volumes
From: Immigration, Refugees and Citizenship Canada
News Release - September 18, 2024
Canada’s immigration system has been crucial in supporting its economy and cultural diversity. However, with the economy evolving and the labor market softening, it’s necessary to adjust the temporary residence programs to ensure sustainable immigration levels and program integrity. Earlier in 2024, Immigration, Refugees and Citizenship Canada (IRCC) announced its plan to reduce temporary residents' share of the population from 6.5% to 5% by 2026. This adjustment responds to the shifting labor market and ensures that the temporary resident programs can be better managed and that they continue to support Canada’s economic needs.
Key Actions to Achieve These Goals:
1. Reducing Study Permit Intake
IRCC has set a cap on the number of study permits issued in 2025, reducing it by 10% from the 2024 target of 485,000. The new cap of 437,000 study permits will be maintained through 2026. The aim is to ensure that Canada’s institutions can manage the influx of international students and provide adequate support and resources. This reduction also helps maintain housing and service availability in major cities hosting large numbers of international students.
2. Updates to the Post-Graduation Work Permit (PGWP) Program
This fall, changes to the PGWP Program will better align it with Canada's long-term labor market needs. Graduates from public institutions will still be eligible for up to three years of post-graduation work permits if they studied in fields linked to occupations experiencing long-term shortages. Additionally, applicants will need to demonstrate a minimum level of language proficiency in either English or French. For university graduates, a Canadian Language Benchmark (CLB) of 7 will be required, and for college graduates, a CLB of 5. This change ensures that graduates are better equipped to integrate into the workforce and transition to permanent residency.
3. Restrictions on Spousal Work Permit Eligibility
Later this year, new restrictions will be introduced for work permits available to spouses of international students and foreign workers. Only spouses of master's degree students enrolled in programs of at least 16 months in duration will be eligible for work permits. Additionally, spousal work permits will only be available for those married to foreign workers in management, professional occupations, or in sectors with significant labor shortages (under the Temporary Foreign Worker Program (TFWP) and International Mobility Program (IMP)).
Addressing Program Integrity and Asylum Claims
Along with managing the intake of temporary residents, the government is implementing measures to address misuse and strengthen the system's integrity. For example, Canada has experienced an increase in asylum claims, partly due to rising global displacement. To handle this responsibly, the government has introduced several initiatives:
1. Partial Visa Requirement for Mexican Nationals
To address integrity issues within the asylum system, a partial visa requirement for Mexican nationals has been introduced. This measure ensures better control over who enters the country while maintaining Canada’s humanitarian commitments.
2. Improved Asylum Claims Processing
As announced in 2024, Canada has streamlined the processing of asylum claims while maintaining fairness and integrity in the system. This aims to reduce the backlog of claims and ensure that genuine refugees are processed efficiently while fraudulent claims are minimized.
3. Visa Integrity Strengthening
To further strengthen visa issuance, IRCC is enhancing decision-making tools for immigration officers to detect fraud more effectively. This includes reviewing decision-making processes and exploring further measures to safeguard visa integrity.
Tightening Compliance and Reducing Employer Misuse
A significant part of the changes involves tightening eligibility and compliance for the Temporary Foreign Worker Program (TFWP). This program was initially designed to fill labor shortages where Canadian workers were unavailable. However, misuse has been reported, with employers bypassing qualified Canadian workers in favor of temporary foreign workers. In response, the government has introduced several new measures:
1. LMIA Processing Restrictions
As of September 26, 2024, the Labour Market Impact Assessment (LMIA) process for low-wage streams will no longer be processed in census metropolitan areas where the unemployment rate is above 6%. Exceptions will be made for essential industries such as food security (primary agriculture, food processing, and fish processing), construction, and healthcare sectors. This ensures that only employers with a genuine need for foreign workers can access the program.
2. Reducing Foreign Worker Quotas
Employers will now be limited to hiring no more than 10% of their workforce through the TFWP, down from previous caps. This ensures Canadian workers are prioritized for available jobs. The duration of employment for low-wage foreign workers has also been reduced to one year, compared to the previous two-year limit.
3. Stricter Oversight and Penalties
Employers using the TFWP must comply with stricter oversight. The government is also considering LMIA fee increases to cover the costs of additional compliance checks. Employers found to be non-compliant could face severe penalties, including fines up to $100,000 per violation, bans from the program, or even permanent disqualification. This ensures that the program is only used by employers with genuine labor shortages.
Strengthening Canada’s Immigration System for the Future
These changes are part of a broader effort to align Canada's immigration policies with its evolving labor market and economic needs. The government is committed to ensuring that temporary residents contribute to the economy while protecting vulnerable individuals and upholding the integrity of the immigration system.
As Minister Marc Miller stated, “Our immigration system must preserve its integrity, and be well managed and sustainable. We are taking action to strengthen our temporary residence programs and roll out a more comprehensive immigration plan to meet the demands of today’s changing landscape.”
Quick Facts:
- The reduction of temporary residents from 6.5% of the population to 5% will be included in the 2025-2027 Immigration Levels Plan, to be released by November 1, 2024.
- Graduates in fields of study linked to occupations experiencing shortages will remain eligible for up to three years of post-graduation work permits.
- The government is allocating 12% of study permit intake for master's and doctoral students, in recognition of their significant contributions to the Canadian labor market.
- A $743.5 million investment over five years has been proposed in Budget 2024 to support Canada’s asylum system and ensure its stability.
The steps taken today show a commitment to ensuring that Canada’s temporary residence programs are sustainable and meet the country’s needs while prioritizing Canadian workers and ensuring fair treatment of temporary residents.
Immigration, Refugees and Citizenship Canada. “Strengthening Temporary Residence Programs for Sustainable Volumes.” News release, September 18, 2024.
