Canadian Chamber Warns Immigration System Is Facing a Crisis in 2025

(CANADA) Canada’s largest business network says the country’s immigration system is “facing a crisis” in 2025, warning that rising complexity, sharp target cuts, and policy whiplash are hurting newcomers and employers alike. In a new statement, the Canadian Chamber of Commerce urged the federal government to stabilize programs and provide clear timelines as processing delays mount and labour shortages persist across multiple sectors.

At the center is the federal 2025–2027 Immigration Levels Plan, which reduces permanent resident admissions and imposes steep cuts to temporary resident entries beginning next year. According to the Chamber, permanent admissions are set at 395,000 in 2025, with further decreases expected in later years. Temporary pathways will also shrink, with the International Mobility Program’s target falling from nearly 286,000 in 2024 to about 129,000 in 2025. The government says lower targets are meant to ease housing, health care, and public service pressures. The Chamber counters that the cuts risk deepening labour gaps and slowing growth just as many firms struggle to hire.

Diana Palmerin-Velasco, Senior Director in the Chamber’s Future of Work department, said the immigration system has become “too complicated,” with unclear rules and unstable policies that make planning difficult for employers and newcomers. She called for a “meticulous review” of the temporary foreign worker program, which faces calls for termination from some critics and doubts about whether it meets market needs. The Chamber argues that predictable rules and steady intake levels are essential to keep the labour market functioning.

Policy changes overview

Public sentiment has shifted. Nearly 60% of Canadians surveyed in late 2024 felt the country was taking in too many newcomers—the highest share since 2000. Following that shift, newly elected Prime Minister Mark Carney has kept a stabilization strategy: lower permanent resident admissions and caps on temporary residents to relieve strain on public systems.

According to analysis by VisaVerge.com, this approach reflects growing pressure to slow intake while the government tries to expand housing supply and speed up service delivery.

The Chamber says industries with “persistent labour challenges” include:

• Agriculture
• Construction
• Accommodation
• Food processing
• Food services

Employers in these sectors report unfilled roles in rural and remote communities, as well as shift work that often draws few local applicants. With temporary entries capped and permanent resident targets reduced, the Chamber warns the labour pool will shrink at the very moment businesses need workers to recover and grow.

Processing backlogs and LMIA delays

Processing backlogs add to the strain. Employers report that work permit decisions and LMIA approvals now take far longer, with LMIA processing times having tripled between 2023 and 2025.

• Longer waits push employers to delay projects and force would-be workers to put plans on hold.
• LMIA (Labour Market Impact Assessment) is the government check that confirms no Canadian worker is available for a role.
• When LMIA waits stretch, job offers go stale and companies face costly delays.

For official policy context, the federal plan outlining annual immigration targets is published by Immigration, Refugees and Citizenship Canada. Readers can review current targets and past allocations at IRCC’s Immigration Levels Plan.

Impact on employers and workers

While public debate often links higher youth unemployment to the presence of temporary foreign workers, the Chamber says the data show a generally weak connection. Many of the jobs filled by temporary workers are outside major cities or require hours and conditions that younger Canadians tend not to pursue.

Still, youth unemployment has risen in 2025—Ontario at 7.7% and British Columbia at 6.2%—and some employers in these provinces report hiring freezes. The Chamber worries that pushing down temporary entries without a plan to pair young Canadians with available roles will leave both groups worse off.

Settlement services and funding risks

Settlement services are also at risk. After several years of high admissions, service provider organizations report:

• Budget pressure
• Longer wait times for language classes, job coaching, and housing support
• Potential funding cuts as fewer newcomers are expected

These cuts could weaken supports newcomers need to succeed. The Chamber warns that unstable funding and shifting intake targets will make it harder to integrate those who do arrive—especially refugees and lower-income families who rely on public services.

Policy whiplash and employer planning

Employers describe “policy whiplash” that makes planning hard. One month brings higher documentation standards; the next brings caps and reallocations across streams. Changes to the temporary foreign worker program, the International Mobility Program, and student pathways have landed quickly, with limited transition time.

The Chamber argues the immigration system should move toward:

• Simpler rules
• Clear guidance
• Published service standards that Ottawa meets

Businesses say they can plan around tighter rules if they are consistent; what they cannot manage is uncertainty.

The Chamber’s business case

The Chamber’s argument rests on three main points:

1. Demographics and aging workforce — Canada faces long-term labour shortfalls without sustained immigration.
2. Sectoral impacts — Lower targets will worsen shortages in sectors already short-staffed, especially in rural and remote areas.
3. Costs of delays and unpredictability — Delays and unpredictability increase costs for employers and discourage skilled workers, who may choose other countries.

Politically, the calculus differs. With public support for higher intake falling, the government has prioritized stabilization. Critics of past growth say rapid increases strained housing and health care. The Chamber’s position is that better coordination—more homes, training, and faster processing—would produce stronger outcomes than steep intake cuts. It’s a debate that will define the immigration file through 2027.

Practical advice for applicants and employers

For workers and employers now in the queue, practical steps matter:

• Applicants should double-check program guidance before filing and be ready for longer waits.
• Employers relying on LMIA-backed hiring should plan for extended timelines and keep job offers current.
• When officials ask for updated documents, organizations that respond quickly tend to move faster through the system.

Firms report better results when they split hiring plans by timeline:

1. Short-term needs met locally where possible.
2. Medium-term roles filled through pending applications.
3. Long-term roles aligned with the permanent pathways allowed by the 2025–2027 Immigration Levels Plan.

The Chamber is pressing for a clear schedule of targets and a public roadmap for any future changes, arguing that predictability will help businesses scale and help newcomers settle. It’s also urging Ottawa to publish regular updates on processing times and to set service standards for LMIAs and work permits that reflect real-world volumes.

“Predictable rules and steady intake levels are essential to keep the labour market functioning,” the Chamber says, stressing that stability is key for employers and newcomers alike.

Contact for further information: Rewa Mourad, Public Relations Specialist, Canadian Chamber of Commerce, 613.238.4000 (2211), [email protected].

As the debate unfolds, one fact is fixed: Canada’s economy depends on an immigration system that works. The Chamber’s “crisis” warning signals how far, in its view, the system has drifted from that goal—and how hard the choices will be in the years ahead.