Canada no longer needs immigrants. Is it too late to move?

Canada has long been renowned for its welcoming attitude towards immigrants and international students. Every year, their numbers have grown, but now things might change. Recent government announcements signal significant changes to the country's approach to immigration and foreign employment. Let's explore these developments and their potential implications.

Driving Forces Behind the Changes

The primary catalyst for these policy shifts is the escalating housing affordability crisis. A recent Bank of Canada report underscores a stark mismatch between housing supply and the rapid increase in immigration. Experts project that by 2030, Canada will need approximately 6 million new homes to restore housing affordability to acceptable levels. This shortage is particularly acute in major urban centers, where rising housing costs are creating challenges for both newcomers and Canadian citizens.

Revised Immigration Plans

What is the government planning to do? Immigration Minister Marc Miller has announced a comprehensive review of Canada's immigration plans. It's worth noting that Canada develops a special plan every three years to determine the number of individuals who will receive permanent residency, with annual adjustments.

Ten years ago, Canada planned to admit 261,000 immigrants. In 2024, the target is to issue 485,000 permanent residencies, and in 2025 and 2026, it will be 500,000 each year. These are impressive numbers.

The updated plan, expected in November, is likely to introduce substantial changes affecting both the overall number of new permanent residents and specific immigration categories. These adjustments aim to strike a balance between the country's labor needs and its infrastructure capacity.

Additionally, the Canadian government plans to intensify efforts to improve conditions for current residents, contributing to a more balanced and sustainable immigration policy.

New Measures for Foreign Workers

Specific changes under the Temporary Foreign Worker Program will take effect on September 26, 2024:

• Suspension of LMIA (Labour Market Impact Assessment) application processing for low-wage workers in regions with unemployment rates exceeding 6%. This decision aims to support local workers and reduce job market competition. The LMIA is the primary document employers use to hire foreign workers. If the government stops processing LMIA applications, employers won’t be able to hire people from abroad.
• Limitation on hiring foreign workers to 10% of a company's total workforce. This change is intended to reduce businesses’ reliance on temporary workers and encourage them to recruit and train local employees.
• Reduction of the maximum employment period for low-wage foreign workers from two years to one year. This rule is also meant to push employers to create more opportunities for local workers.

And that’s not all. Further reviews of the Temporary Foreign Worker Program are anticipated in the coming months, potentially affecting high-wage specialists and current LMIA applications.

Implications for International Students

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Changes may not only affect workers. The government is also planning additional restrictions for international students to alleviate pressure on housing, healthcare, and other sectors.

Changes implemented last year include restrictions on student visas, increased financial requirements, and the elimination of work permits for spouses of college students. These measures have already led to a reduction in the number of international students coming to Canada.

We've seen firsthand how these changes have affected our clients. Some managed to arrive and start their studies under the previous rules, while others had to choose between abandoning their plans to study in Canada or reapplying for master's programs.

Interestingly, we've also noticed that many clients are now more realistically assessing the high cost of living in Canada and better understanding the opportunities that Canadian education and local work experience can offer them.

Moving Forward

In light of these changes, you might be wondering if immigration to Canada is still a viable option. While these new policies certainly present challenges, it's important to understand that Canada's goal is not to halt immigration entirely. Rather, the country is striving to create a more sustainable system that benefits both newcomers and current residents by addressing housing affordability, improving healthcare, and balancing the job market.

For those seriously considering immigration to Canada, opportunities remain available. Key factors for success include a commitment to learning the language, financial preparation for relocation, possession of in-demand professional qualifications, relevant work experience, or a willingness to pursue education in Canada with prospects for future employment.

At Immigrant.Today, we're closely monitoring government updates and adapting our services accordingly. If you're interested in immigrating to Canada, obtaining a visa, or applying to a Canadian university, we encourage you to book a consultation with one of our specialists. We'll carefully analyze your situation and develop a tailored relocation strategy based on the latest immigration policies.

Alex Pavlenko, Founder of Immigrant.Today