Canada is Set to Introduce Major Changes to LMIA-exempt Work Permits
Big Updates Coming to Canada’s LMIA-Exempt Work Permits in 2026
Canada is entering a pivotal year for temporary foreign workers as immigration authorities prepare to recalibrate how work permits are issued, regulated, and controlled. From revised intake priorities to expiring humanitarian programs and sweeping legislative proposals, 2026 is shaping up to be a turning point for LMIA-exempt employment pathways.
A Strategic Shift Toward Mobility-Based Work Permits
Canada’s latest immigration planning documents reveal a notable change in how the government intends to manage foreign labour. For 2026, Ottawa plans to admit a significantly higher number of new workers through LMIA-exempt channels under the International Mobility Program (IMP). The intake target has been set at 170,000 new entrants, signaling a strong preference for work permits issued without labour market testing.
These figures represent individuals newly entering Canada on IMP work permits and do not include renewals or permits granted to individuals already residing in the country. In contrast, the government has scaled back its reliance on LMIA-backed hiring. The Temporary Foreign Worker Program (TFWP) will see a reduced allocation, with admissions capped at 60,000, reflecting a broader policy objective to reduce employer dependency on labour market assessments.
Stability, Not Expansion, for Post-Graduation Work Permits
International graduates will not see any changes to PGWP eligibility rules this year, but that stability comes with limitations. IRCC has confirmed that the list of academic programs eligible for Post-Graduation Work Permits will remain unchanged throughout 2026. This decision affects graduates from non-degree programs, who must complete studies aligned with labour market demand to qualify for a PGWP.
Why Program Eligibility Has Been Put on Hold
The freeze on PGWP eligibility is not accidental. It is tied to a national update of how educational programs are categorized. Canada is in the process of transitioning away from the CIP 2021 classification system, which assigns instructional codes to academic programs. A new framework, CIP Canada 2027, is under development and expected to be released publicly around 2027 or 2028.
Rather than adjusting eligibility criteria mid-transition, immigration officials have opted to maintain the existing list until the new classification system is finalized.
Provincial Nominees Face an Approaching Deadline
A lesser-known but critical work permit option for provincial nominee candidates may soon disappear. A temporary policy currently allows select provincial and territorial governments to support LMIA-exempt work permits for nominees who are awaiting permanent residence. These permits can be issued for up to two years and have been particularly important in jurisdictions such as Manitoba and Yukon.
| Province | Canadian city |
|---|---|
| Ontario | Ottawa |
| London | |
| Mississauga | |
| Toronto | |
| Brampton | |
| Hamilton | |
| British Columbia | Nanaimo |
| Victoria | |
| Vancouver | |
| Kelowna | |
| Alberta | Calgary |
| Edmonton | |
| Quebec | Quebec City |
| Montreal | |
| Saskatchewan | Regina |
| Manitoba | Winnipeg |
| Nova Scotia | Halifax |
However, the policy is scheduled to end on December 31, 2025, and there has been no confirmation that it will be extended. Applicants relying on this pathway must meet strict conditions, including maintaining a valid status, holding ongoing employment, and securing official provincial support. Without renewal, many nominees may be forced to seek alternative legal status.
Humanitarian Work Permits Under Review
Ukrainian Nationals
Canada’s special employment measures for individuals who arrived under emergency travel authorization for Ukraine are nearing their end. The policy currently allows eligible Ukrainians and their family members to obtain open work permits and study permits. Unless renewed, it will expire on March 31, 2026. If the policy lapses, extensions will no longer be available, potentially forcing thousands of permit holders to transition to other immigration categories or leave the workforce.
Iranian Nationals
A similar situation applies to Iranian temporary residents in Canada. A special policy permitting Iranians who arrived before February 28, 2025, to access work and study permits is scheduled to conclude on February 28, 2026. As of now, the federal government has not announced whether this relief measure will continue beyond that date.
Study Permit Numbers Tightened Nationwide
Managing student intake became another key priority in 2025. The federal government significantly reduced the number of study permits it planned to issue, citing pressure on housing, healthcare, and public infrastructure.
The cap introduced for the year limited the number of applications processed and resulted in fewer permits being approved overall. Mid-year data showed that new student arrivals were well below annual targets, confirming the immediate impact of these restrictions. Further reinforcing this trend, authorities later announced even lower issuance targets for 2026, indicating that tighter controls on international student numbers will continue in the near future.
| National rank | Canadian city |
|---|---|
| 1 | Ottawa, Ontario |
| 2 | Nanaimo, British Columbia |
| 3 | Victoria, British Columbia |
| 4 | Vancouver, British Columbia |
| 5 | Quebec City, Quebec |
| 6 | Calgary, Alberta |
| 7 | Halifax, Nova Scotia |
| 8 | Edmonton, Alberta |
| 9 | Kelowna, British Columbia |
| 10 | Montreal, Quebec |
| 11 | London, Ontario |
| 12 | Mississauga, Ontario |
| 13 | Toronto, Ontario |
| 14 | Brampton, Ontario |
| 15 | Regina, Saskatchewan |
| 16 | Winnipeg, Manitoba |
| 17 | Hamilton, Ontario |
Parliament Considers Expanded Control Over Work Permits
Beyond program changes, a proposed federal law could dramatically alter how temporary residents are managed. Bill C-12, currently advancing through Parliament, would grant the federal cabinet extensive authority to intervene in immigration processing. If passed, the government could:
- Halt or suspend work permit application intake
- Cancel or modify existing permits
- Impose new conditions on temporary residents
These powers could be used in situations involving public safety, national security, health risks, administrative failures, or fraud. The bill has already cleared the House of Commons and is expected to be reviewed by the Senate in early 2026. Historically, most legislation approved by the House eventually becomes law.
New Work Permit Model Planned for Food Production Sectors
IRCC has also confirmed that it is developing a dedicated work permit stream for agriculture and fish processing workers. This sector-focused permit is intended to address long-standing labour shortages in Canada’s food supply chain. While the concept has been formally acknowledged in departmental planning reports, details such as eligibility criteria, duration, and launch timelines have not yet been disclosed.
What This Means for Foreign Workers in 2026
Temporary residents, employers, and international graduates should closely monitor official announcements throughout 2026, particularly regarding policy renewals and the final outcome of Bill C-12. As Canada recalibrates its approach to temporary labour, preparation and timely decision-making will be more important than ever.
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