Author: Azadeh Haidari-Garmash, RCIC
Major immigration policy overhaul affects thousands of workers and students
On This Page You Will Find:
- Critical updates to LMIA-exempt work permit targets affecting 170,000 workers
- The complete freeze on post-graduation work permit eligible programs
- Expiring policies for Ukrainian and Iranian workers that could affect thousands
- New legislative powers that could reshape Canada's entire immigration system
- Sector-specific work permits launching for agriculture and fish processing
Summary:
Canadian immigration is experiencing its most significant overhaul in years, with sweeping changes to LMIA-exempt work permits taking effect throughout 2026. The federal government has dramatically increased admission targets by 32% to accommodate 170,000 new workers, while simultaneously freezing changes to post-graduation work permit eligibility for international students. Critical temporary policies protecting Ukrainian and Iranian nationals are set to expire, potentially leaving thousands without legal work status. Meanwhile, Bill C-12 advances through Parliament with unprecedented executive powers that could allow the government to suspend work permit processing at will. These changes will directly impact your ability to work in Canada, extend your stay, or transition to permanent residence.
🔑 Key Takeaways:
- LMIA-exempt work permit targets jumped 32% to 170,000 admissions in 2026
- Post-graduation work permit eligible programs are frozen for the entire year
- Ukrainian and Iranian work permit policies expire in March and February 2026
- Bill C-12 could grant government power to suspend work permit processing
- New agriculture and fish processing work permits are in development
Maria Santos refreshed her laptop screen for the third time that morning, searching for updates on her post-graduation work permit application. Like thousands of international students across Canada, she's navigating an immigration landscape that's shifting faster than ever before. The rules that governed her study permit application just two years ago bear little resemblance to today's reality.
If you're holding a work permit, planning to apply for one, or supporting someone through Canada's immigration system, 2026 brings changes that will directly affect your future. The federal government has implemented the most comprehensive overhaul of LMIA-exempt work permits in recent memory, touching everything from admission targets to emergency policies for displaced populations.
Massive Increase in Work Permit Targets
The most striking change comes in the numbers themselves. Canada's 2026 Immigration Levels Plan sets the admission target for LMIA-exempt work permits at 170,000 – a substantial 32% jump from last year's target of 128,700.
This increase signals a fundamental shift in Canada's approach to temporary foreign workers. All LMIA-exempt work permits flow through the International Mobility Program (IMP), which covers everything from intra-company transfers to international agreements like NAFTA.
What this means for you: If you're planning to apply for an LMIA-exempt work permit, your chances of approval have theoretically improved. The government is actively seeking to fill these positions, suggesting faster processing times and more favorable outcomes for qualified applicants.
However, there's a trade-off. The government simultaneously reduced targets for LMIA-based work permits under the Temporary Foreign Worker Program from 82,000 to 60,000. This 27% decrease means employers will face greater challenges hiring foreign workers for positions requiring labor market testing.
The admission targets count only net new temporary resident admissions – they don't include permit renewals or work permits issued to foreign nationals already in Canada. This distinction matters because it means the actual number of work permits issued will be significantly higher than 170,000.
Post-Graduation Work Permits Hit Freeze
International students received mixed news with the announcement of a complete freeze on changes to post-graduation work permit (PGWP) eligible fields of study for 2026.
The backstory reveals the government's struggle with policy consistency. In June 2025, officials updated the eligibility list by adding 119 new programs while removing 178 others. Just nine days later, they reversed course, announcing the 178 removed programs would remain eligible until early 2026. Now, these programs stay on the list for the entire year.
Currently, 1,107 study programs qualify for PGWP eligibility. The freeze means if you're an international student whose initial study permit application was submitted on or after November 1, 2024, you'll work with the same list throughout 2026.
The field of study requirement doesn't apply to everyone. Graduates of bachelor's, master's, and doctoral programs remain exempt, regardless of their field of study. The restrictions primarily affect students in certificate and diploma programs.
Here's what you need to know: Immigration, Refugees and Citizenship Canada (IRCC) determines eligibility based on the list that was active when you submitted your initial study permit application, not when you graduate. This means students who applied before certain dates may have different eligibility criteria than more recent applicants.
The freeze coincides with a major overhaul of Canada's Classification of Instructional Programs (CIP) system. The current CIP 2021 version 1.0 will be replaced by CIP Canada 2027 Version 1.0, scheduled for release in late 2027 or early 2028. This technical update will likely trigger significant changes to PGWP eligibility once implemented.
Expiring Policies Create Uncertainty
Two major temporary policies that have provided work authorization for thousands of foreign nationals face uncertain futures as their expiration dates approach.
Ukrainian Workers Face March Deadline
The Canada-Ukraine Authorization for Emergency Travel (CUAET) extension expires on March 31, 2026. This policy has provided open work permits and study permits to Ukrainians and their family members who arrived in Canada on or before March 31, 2024.
The policy has been a lifeline for families fleeing conflict, offering the stability of legal work authorization while they establish themselves in Canada. Without renewal, Ukrainian nationals with expiring work permits issued under this policy cannot extend their current permits through the same program.
Iranian Nationals Hit February Cutoff
Similarly, the temporary public policy for Iranian nationals expires even sooner – February 28, 2026. This policy allows Iranians who arrived in Canada on or before February 28, 2025, to obtain work permits and study permits.
The federal government has remained silent on whether either policy will receive extensions. This uncertainty creates significant stress for affected individuals who need to make long-term plans about their lives in Canada.
If you're affected by either policy, start exploring alternative immigration pathways now. Options might include provincial nominee programs, skilled worker categories, or family sponsorship, depending on your circumstances.
Provincial Nominee Work Permits in Limbo
Another policy facing expiration allows provincial nominee candidates to receive special work permits with provincial or territorial support. Originally set to expire on December 31, 2025, the policy's current status remains unclear.
Manitoba and Yukon established programs under this policy, issuing work permits valid for up to two years. To qualify, applicants need either a valid work permit when applying or must have had valid work status on May 7, 2024, plus employment and provincial support letters.
The policy addresses a common challenge in provincial nominee programs: the gap between receiving a nomination and obtaining permanent residence. During this period, nominees often struggle to maintain legal work status, especially if their initial work permits expire.
Bill C-12 Brings Sweeping Powers
Perhaps the most significant long-term change comes through Bill C-12, currently advancing through Parliament. Officially titled "An Act respecting certain measures relating to the security of Canada's borders and the integrity of the Canadian immigration system," the bill would grant unprecedented executive powers over temporary residents.
The legislation passed its third reading in the House of Commons on December 11, 2025, and awaits Senate consideration when Parliament resumes on February 3, 2026. In Canadian politics, bills that pass the House of Commons rarely face defeat in the Senate.
What Powers Does Bill C-12 Grant?
The bill empowers the Governor in Council (acting on Cabinet recommendations) to:
- Cease accepting work permit applications for processing
- Pause or terminate processing of existing applications
- Vary, cancel, or suspend immigration documents
- Impose new conditions on temporary residents
These powers can only be exercised when the Governor in Council considers it in the public interest, specifically for situations involving administrative errors, fraud, public health, public safety, or national security.
The broad language raises concerns among immigration lawyers and advocates. Terms like "public interest" and "administrative errors" could potentially justify significant restrictions on work permit processing during various circumstances.
Impact on Work Permit Holders
If enacted, Bill C-12 could fundamentally change how Canada manages temporary foreign workers. The government would gain tools to respond quickly to perceived problems, but workers would face increased uncertainty about their status.
The bill also overhauls Canada's asylum system, restricting new asylum claims and enabling officials to deem claims abandoned under certain circumstances. While this primarily affects asylum seekers, it reflects a broader government approach toward more restrictive immigration policies.
New Sector-Specific Programs in Development
On a more positive note, IRCC is collaborating with Employment and Social Development Canada to develop new sector-specific work permits for agriculture and fish processing industries.
These sectors have long struggled with labor shortages, particularly for seasonal work that doesn't align well with traditional permanent immigration programs. A dedicated work permit category could provide more flexible solutions for both employers and workers.
Details remain scarce, with no announced launch dates or eligibility criteria. However, the initiative suggests recognition that Canada's current work permit system doesn't adequately serve all economic sectors.
What These Changes Mean for You
The 2026 changes create both opportunities and challenges, depending on your situation:
If you're planning to apply for an LMIA-exempt work permit: The increased targets suggest better approval odds and potentially faster processing. Focus on ensuring your application meets all requirements and consider applying sooner rather than later.
If you're an international student: The PGWP freeze provides stability for 2026, but start planning for potential changes in 2027. Consider how the upcoming CIP overhaul might affect your field of study.
If you're affected by expiring policies: Don't wait for government announcements about extensions. Research alternative immigration pathways now, including provincial nominee programs, federal skilled worker categories, or family sponsorship options.
If you're a current work permit holder: Stay informed about Bill C-12's progress through Parliament. While the new powers are intended for exceptional circumstances, understanding your rights and options remains crucial.
Looking Ahead
Canada's immigration system continues evolving rapidly, balancing economic needs with political pressures and administrative capacity. The 2026 changes reflect this ongoing tension, simultaneously expanding opportunities in some areas while restricting them in others.
The most significant unknown remains how these policies will interact in practice. Will increased LMIA-exempt targets actually translate to faster processing? How will the PGWP freeze affect international student enrollment? Will expiring temporary policies receive last-minute extensions?
These questions will likely be answered throughout 2026 as policies take effect and their impacts become clear. For now, the best strategy involves staying informed, preparing thoroughly, and maintaining flexibility as Canada's immigration landscape continues its rapid transformation.
The changes ahead aren't just policy adjustments – they represent fundamental shifts in how Canada views temporary foreign workers and international students. Understanding these changes and adapting accordingly will be crucial for anyone navigating Canada's immigration system in 2026 and beyond.
