Canada Updates: Reduction in Immigration Numbers and LMIA Wage Increase
Canada has announced several more policies that aim to pause foreign population growth in the short term and strengthen the integrity of the immigration system through wage controls in the Temporary Foreign Worker Program.
2025-2027 Immigration Levels Plan
On October 24, 2024, Immigration Minister, Marc Miller, announced Canada’s new Immigration Levels Plan (“Levels Plan”) which aims to sharply decrease the number of immigrants allowed in Canada. Permanent resident targets will be reduced from 500,000 permanent residents to:
395,000 in 2025;
380,000 in 2026; and
365,000 in 2027
The Levels Plan also reduces temporary resident volumes from 6.2% to 5% of Canada’s population by the end of 2026. The government aims to reduce the temporary population by:
445,901 in 2025; and
445,662 in 2026.
As the government aims to reduce numbers, it also plans to transition more temporary residents who are already in Canada as students and workers to permanent residents. A further focus will be on foreign nationals in long-term economic growth and key labor market sectors such as health and trades as well as Francophone immigrants.
Labor Market Impact Assessment (LMIA) Wage Increase
Effective November 8, 2024, the starting hourly wage for workers coming into Canada through the high-wage stream will increase to 20% higher than the current level, which is the median wage in the applicable province or territory of work. This represents an approximate increase of $5 to $8 per hour depending on the location where the work is performed.
Further, starting October 28, 2024, employers will no longer be able to use attestations from lawyers and chartered professional accountants to prove their business legitimacy for the purpose of LMIA applications. Employers will instead need to rely on tax documents and other accepted forms of proof.
What this means for our clients
The Levels Plan and wage increase in the LMIA program may result in employers facing enhanced scrutiny when hiring foreign nationals in Canada under various programs. Foreign national employees already in Canada may find it harder to qualify for permanent residence unless they are highly skilled, graduates of Canadian schools, or French-speaking. Targets are not being set for visitors to Canada or those applying for extensions inland extensions. We will continue to monitor trends in processing and will share updates with clients.