The Canadian immigration landscape continues to shift dramatically in 2025, presenting both challenges and opportunities for tech employers and professionals. This week’s legal update webinar, presented by immigration experts Craig Natsuhara and Jeffrey Chang from EY Law, LLP, provided TAP Network members with pivotal insights into the current state of Canadian immigration policy and its impact on the technology sector.
We covered a lot of ground in the final session of our Summer Legal Updates series. Here are some of the points to consider in attracting and retaining global talent.
Key Policy Changes Reshaping Immigration
Temporary Resident Reduction Initiative
The Canadian government has set an aggressive target to reduce temporary residents from 7.1% to 5% of the population by 2025. This policy shift is already creating ripple effects across the immigration system, with the following outcomes:
- Significantly reduced approval rates for work permits and visitor visas
- Processing times exceeding 200 days for work permit extensions
- Heightened scrutiny of all temporary resident applications
Labor Market Impact Assessment (LMIA) Restrictions
The data reveals unsettling conditions for tech employers:
- Less than half of instructional programs now qualify for post-graduation work permits
- The Global Talent Stream track represents only 1.5% of all LMIA approvals
- There was a 40% drop in LMIA approvals for graphic designers in Q1 2025 compared to previous year stats
- We’re seeing increased wage thresholds for the low-wage position category in LMIA’s
Challenges for Tech Professionals
Permanent Residency (PR) Bottlenecks
While Immigration, Refugees and Citizenship Canada (IRCC) announces substantial permanent residency approval targets each year, a limited portion of the total allocations goes to economic categories that directly benefit employer-sponsored workers, creating increased competition for tech workers seeking invitations to apply for permanent residency. This translates into tech professionals experiencing longer wait times than we’ve seen in the last few years.
- Only a small fraction of approvals are allocated to economic categories relevant to employer-sponsored workers
- Specific priority categories can receive a significant share of invitations
- Provincial Nominee Program (PNP) quotas have been cut in half, reducing tech workers securing PR status through this pathway
Work Permit Updates
New restrictions are affecting various pathways:
- Intra-company transfer permits now require demonstration of significant multinational benefits
- Free trade agreement categories face new wage requirements and increased scrutiny
- Spousal work permits are no longer available for certain occupation categories
Strategic Recommendations for Employers
Proactive Planning is Essential
Given the current constraints, best practices employers can consider adopting include:
- Starting the work permit extension processes 8-9 months before expiry dates
- Provide complete and comprehensive documentation in applications to prevent refusals or delays
- Verify employees’ PR application status to ensure applications have been properly submitted
Retention and Recruitment Strategies
Our legal experts emphasized the need for strategic workforce planning to include:
- Designing retention strategies that account for immigration constraints to avoid employee frustration
- Exploring work permit extension options before the current permit expires to maintain status
- Building the case for executive-level and critical positions to maintain their work status
Professional Guidance
The complexity of the current system makes professional assistance more important than ever. Employers should consider seeking expert help to navigate the increasingly restrictive landscape when needed.
Industry Advocacy Opportunities
The session highlighted several areas where collective industry action could make a difference:
- Advocating for Global Talent Stream occupation list updates
- Submitting collective analysis on current and emerging tech occupations
- Developing advocacy strategies that highlight immigration’s importance to the tech sector
Looking Ahead
As Canada’s immigration policies continue to evolve, the tech sector faces unprecedented challenges in attracting and retaining global talent. The key to success lies in:
- Early and thorough preparation of all immigration applications
- Strategic workforce planning to maintain a qualified workforce
- Collective industry advocacy for policy improvements
- Professional guidance to navigate complex requirements
This legal update webinar provided a pragmatic look at immigration for the tech industry. While the current landscape presents significant challenges, informed employers who adapt their strategies and engage in advocacy efforts will be better positioned to navigate the changes.
Upcoming TAP Network Events and Resources
This webinar was the final session in TAP Network’s summer employment law boot camp series. For more information about upcoming events visit the TAP Network calendar of events.
Upcoming TAP Network Initiative: Learn about our upcoming 2026 Canadian Talent Benchmarking Study for technology companies, designed to support your people strategy and strengthen Canada’s tech sector.
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