Canada’s Foreign Worker Arrivals Drop Sharply in 2025

Canada’s Foreign Worker Arrivals are dropping sharply in 2025, signaling a major shift in the country’s labor market. Recent government data shows only 202,923 foreign workers are expected this year. The figure represents more than 160,000 below federal targets.

This decline already aligns closely with 2026 immigration goals, highlighting faster-than-anticipated reductions in temporary resident intake. Employers, provinces, and international applicants now face a changing landscape that affects hiring, housing, and workforce planning nationwide.

Policy reforms introduced in 2024 and 2025 are driving these trends, reshaping both skilled and low-wage worker flows across Canada.

2025 Foreign Worker Arrivals: Understanding the Shortfall

Canada’s Immigration Levels Plan for 2025–2027 set ambitious targets to meet labor market needs. The goals were:

1. 82,000 workers through the Temporary Foreign Worker Program (TFWP)

2. 285,750 workers through the International Mobility Program (IMP)

3. 367,750 total Foreign Worker Arrivals

Between January and August 2025, actual arrivals fell far short. Only 43,315 TFWP workers entered the country. IMP arrivals reached 111,200. Combined, total foreign workers numbered 154,515.

Projected Year-End Numbers

Based on seasonal trends and historical data, Canada will likely end 2025 with:

1. 59,679 TFWP arrivals

2. 143,244 IMP arrivals

3. 202,923 total Foreign Worker Arrivals

This indicates a shortfall of 164,827 workers compared to federal targets.

Implications of the Shortfall

Analysts warn that this gap affects multiple sectors:

1. Labor-intensive industries like agriculture, hospitality, and caregiving

2. Technology and professional services requiring temporary skilled workers

3. Provincial workforce planning, especially in high-growth urban centers

Policy Changes Driving Declines in Foreign Worker Arrivals

Canada implemented major reforms to reduce temporary resident growth. The government aims to limit temporary residents to 5% of the population by 2027. Policies affect multiple immigration pathways and program eligibility.

Key Reforms Affecting Worker Arrivals

1. Moratorium on low-wage Labor Market Impact Assessments (LMIAs) in regions with unemployment above 6%

2. Higher wage thresholds for high-wage LMIA applications, increasing employer costs

3. New language proficiency requirements for Post-Graduation Work Permits (PGWPs)

4. Restrictions on PGWPs for students outside eligible fields

5. Tighter rules for Spousal Open Work Permits (SOWPs)

6. Stricter Intra-Company Transfer (ICT) regulations

7. Removal of visitor-to-work permit conversion programs implemented during the pandemic

8. Reduced multi-year targets for both TFWP and IMP programs

Impact on Programs

The International Mobility Program faces the largest decline. Analysts project a shortfall exceeding 142,000 arrivals in 2025. Employers relying on temporary workers in technology, hospitality, and agriculture are already adjusting hiring plans.

Foreign Worker Arrivals and Housing Market Impacts

Reduced Foreign Worker Arrivals influence Canada’s housing market, particularly in cities with historically high intake levels. Data from TD Bank and CMHC highlights significant shifts.

Effects on Rental Markets

1. Lower rental demand in urban areas

2. Slower growth in rental prices

3. Negative rental growth in major metropolitan areas such as Toronto and Vancouver

Regional Variations

1. Ontario and British Columbia experience the largest adjustments due to prior high foreign worker intake

2. Smaller provinces see moderate changes but still experience seasonal worker shortages

3. These changes align with government goals to stabilize population growth and housing demand

Housing experts note that foreign workers historically drive rental activity. Their reduction directly eases urban housing pressure while stabilizing long-term affordability.

Labor Market Adjustments from Fewer Foreign Worker Arrivals

Canada’s job market adapts to lower temporary labor inflows. Employers modify hiring plans, particularly in sectors that rely heavily on foreign labor.

Early Effects on Employment

1. Reduced competition for entry-level positions across retail, hospitality, and service sectors

2. Slight declines in youth unemployment as fewer workers compete for jobs

3. Increased hiring incentives for domestic candidates to fill labor gaps

Sector-Specific Concerns

Economists warn that sectors such as agriculture, caregiving, and food processing may face labor shortages. Businesses dependent on temporary workers must plan for production timelines and service continuity. Strategic workforce planning is now more critical than ever.

International Student Arrivals Mirror Worker Trends

Foreign Worker Arrivals are not the only numbers declining. International student intake is also slowing. Stricter enrollment and work permit regulations impact temporary residents broadly.

Combined Trends

1. Overall temporary resident numbers dropping faster than initially forecasted

2. Alignment with 2026 immigration targets for both workers and students

3. Immediate implications for sectors relying on graduates transitioning to work permits

These simultaneous declines indicate a consistent government approach to managing population growth while balancing housing and employment pressures.

Long-Term Implications for Canada’s Economy

A sustained drop in Foreign Worker Arrivals will affect multiple sectors over time. Analysts identify potential economic outcomes.

Economic Effects

1. Slower service-sector growth due to reduced labor supply

2. Adjustments in staffing plans for seasonal and entry-level roles

3. Higher recruitment costs and delays in operational projects

4. Potential localized inflation in regions experiencing labor scarcity

Government and Employer Considerations

Federal and provincial authorities must monitor labor gaps carefully. Employers are advised to review staffing strategies and contingency plans. Effective workforce management will be crucial to prevent disruptions in key industries.

Navigating Foreign Worker Arrivals Policies: Why Legal Guidance Matters

Canada’s new policies make immigration pathways complex. Workers, students, and families face stricter assessments. Choosing the wrong application route can lead to:

• Delays in work permit approvals

• Refusals for permanent residency applications

• Risky reliance on asylum or other uncertain pathways

Professional guidance is crucial to navigate these changes effectively.

How Maple Crest Immigration Law Firm Helps You Secure Your Future

Canada’s declining Foreign Worker Arrivals show the importance of strategic planning. Maple Crest Immigration Law Firm offers expert support across all major immigration pathways.

Key Services

• Permanent Residency Applications: Express Entry, Provincial Nominee Programs, and economic pathways, fully optimized and legally compliant.

• Work and Study Permits: Guidance on programs aligned with long-term PR eligibility.

• Family Sponsorship: Assistance for Spousal, Child, and Parent sponsorships.

• Expert Legal Advice: Updates on policy changes and best practices to avoid mistakes.

With professional representation, applicants minimize risks and access the most stable pathways to Canadian residency.

Why Choose Legal Expertise Over Risky Alternatives

Some applicants consider asylum claims for status. These routes are uncertain, slow, and often unsuccessful if not based on genuine protection needs. Maple Crest Immigration Law Firm ensures legal, approved, and secure options. Their approach provides:

• Predictable results

• Long-term stability

• A structured roadmap to permanent residency

Applicants in Canada or planning from abroad receive expert guidance tailored to evolving federal policies.

Conclusion: Foreign Worker Arrivals Drop Signals New Era

Canada’s sharp decline in Foreign Worker Arrivals reflects significant policy shifts. Employers, students, and prospective immigrants must adapt quickly. Fewer work permits and stricter regulations highlight the need for strategic planning.

Maple Crest Immigration Law Firm offers clarity, expertise, and reliable guidance to help applicants navigate Canada’s changing immigration landscape. Secure your future with professionals who understand the rules and maximize your chances for success.

Protect your pathway to work or permanent residency. Contact Maple Crest Immigration Law Firm today to build a secure, legally compliant future in Canada.