A small business advocacy group is warning that the expiry of more than 1.3 million work permits by the end of 2026 could create significant economic and labour challenges across Canada.
The Canadian Federation of Independent Business (CFIB) says thousands of workers could be forced to leave the country or face uncertainty as employers attempt to renew permits or secure new authorizations under recent federal policy changes.
“The economic fallout could be massive,” said CFIB president Dan Kelly in a statement. “Thousands of workers could be forced to leave or left in limbo waiting for an extension or a new permit.”
Kelly said some estimates suggest more than 300,000 work permits are set to expire by the end of March alone, creating immediate concerns for employers who rely on foreign workers to fill persistent labour gaps.
According to CFIB’s Monthly Business Barometer, 39 per cent of small businesses say shortages of skilled labour remain the second-largest constraint on their sales and growth.
In a 2024–2025 CFIB survey of businesses that have used the federal Temporary Foreign Worker Program (TFWP), 57 per cent said they would have to scale back growth plans if they were unable to retain or access foreign workers. More than half, 52 per cent, said they would struggle to fill orders or deliver services.
Nearly one quarter of respondents said they would need to reduce operating hours, while 18 per cent indicated it was very likely their business would have to close if they could not access foreign labour.
Kelly said the findings challenge the perception that employers use the TFWP to bypass Canadian workers.
“Small businesses want to hire Canadians, including young Canadians and under-represented groups, but these jobs may depend on a specific skill they cannot find,” he said. “In some cases, without the specialized TFWs, there are fewer jobs for Canadians.”
CFIB is urging the federal government to take steps to prevent disruptions as large numbers of permits approach expiry. The group is calling for measures including allowing existing foreign workers already in Canada to remain through a grandfathering provision, creating pathways to permanent residency for lower-skilled workers who have maintained legal status and paid taxes, and reducing administrative requirements within the program.
The organization also recommends establishing an appeals process for denied applications and consulting more closely with employers before implementing further reforms.
By Steven Sukkau, Local Journalism Initiative Reporter
Original Published on Mar 11, 2026 at 09:41
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