More than 1.3 million work permits are set to expire by the end of 2026, threatening significant economic and labour challenges, warns the Canadian Federation of Independent Business (CFIB).
“The economic fallout could be massive. Thousands of workers could be forced to leave or left in limbo waiting for an extension or a new permit. Some estimates show more than 300,000 work permits are due to expire by the end of March alone. Many employers are now facing the hard reality that they may not be able to keep their foreign workers because of recent federal changes,” said Dan Kelly, CFIB president. “Sectors struggling with persistent labour gaps will be hit hardest if they lose access to their TFWs, leaving crucial sectors in our economy exposed at a time when Canada needs to be strengthening its economy and supply chains.”
According to CFIB’s Monthly Business Barometer®, skilled labour shortages remain the second highest constraint on sales and growth for 39% of small businesses.
In a 2024-2025 survey of businesses who had turned to the Temporary Foreign Worker Program (TFWP) to meet their labour market needs, 57% said they would have to scale back their growth plans if they could not retain or have access to foreign workers and 52% would be unable to fill orders or render services.
Nearly a quarter (24%) would have to reduce their hours of operation and 18% stated that it was very likely that they would have to close their operations.
Many Canadians also mistakenly believe employers can easily bypass local workers by hiring through the TFWP. CFIB’s snapshot proves that small business owners hire TFWs out of necessity and to fill gaps where local skilled labour isn’t available.
“Small businesses want to hire Canadians, including young Canadians and under-represented groups, but these jobs may depend on a specific skill they cannot find. In fact, the share of youth working in many of the sectors where TFWs are employed, such as agriculture or manufacturing, remains extremely low,” Kelly added. “In some cases, without the specialized TFWs, there are fewer jobs for Canadians. This is why access to TFWs remains important.”
To prevent disruptions and keep supply chains moving, CFIB urges the federal government to:
- Facilitate the retention of TFWs already in Canada through a grandfathering clause;
- Provide a pathway to permanent residency for lower-skilled TFWs who have maintained their legal status, acquired work experience in Canada, and paid taxes;
- Implement an appeals process if a TFW application is denied;
- Reduce the program’s administrative burden; and,
- Consult employers and the business community in advance of future reforms.
“Businesses and their employees need stability. Many of these work permit holders, including TFWs, are already integrated in, and contributing to, their communities. Immigration policies must respond to economic needs and so now is not the time to make things even harder for small businesses and their employees. Government needs to deliver on a concrete plan to ensure workforce stability,” said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB.