A new episode of CityNews’ “The Big Story” podcast released early on July 14 dives into the human and economic impact of recent federal cutbacks on study permits and temporary foreign worker (TFW) visas. Freelance journalist Shilpashree Jagannathan and Queen’s University law professor Sharry Aiken tell host Maria Kestane that Ottawa’s quieter-than-expected reductions are already rippling through local labour markets. Under internal ministerial instructions issued in May, IRCC is capping new study-permit approvals for 2026 at roughly 280,000—down nearly 30 % from 2025—and tightening TFW allocations in low-wage streams. The policy aims to relieve housing and services pressures but has blindsided sectors that rely on seasonal and entry-level labour. Restaurants in smaller cities report shrinking applicant pools, and long-term-care facilities in Atlantic Canada have warned of double-digit vacancy rates. Post-secondary institutions feel the pinch as well. Aiken notes that international tuition now underwrites up to 40 % of operating budgets at some colleges. “When permits dry up, schools face multimillion-dollar shortfalls almost overnight,” she says, adding that smaller community colleges are most exposed. Employers can still access talent through the Global Skills Strategy or Intra-Company Transfer pathways, but processing volumes for those streams remain largely unchanged. Immigration lawyers are therefore urging businesses to move quickly on exempt or LMIA-free options, and to expand domestic recruitment where feasible. With federal-provincial consultations on future intake levels due this autumn, stakeholders are lobbying for more predictable quotas and clearer lead times. Until then, organisations may need contingency staffing plans to navigate an immigration landscape that is becoming noticeably tighter.
