Canada’s Labour Market Pressure Deepens as LMIA Approvals Surge in 2025

Canada’s workforce shortage story took another turn in 2025 as LMIA approvals in Canada climbed sharply, revealing how deeply employers continue to rely on temporary foreign workers to keep businesses running. New federal data confirms that more than 122,000 Labour Market Impact Assessments were approved during the first three quarters of the year, pointing to structural gaps that domestic hiring alone has not been able to resolve.

Behind these numbers is a reality employer across the country know well. From hospitals and farms to trucking firms and food processors, many industries are struggling to find workers willing or available to fill critical roles. While policy discussions often focus on controlling temporary resident growth, labour demand on the ground continues to push in the opposite direction.

Ontario accounted for the highest number of positive LMIAs in the third quarter of 2025, approving 11,392 positions. Quebec followed with 7,811 approvals, while British Columbia issued 6,336. These provinces consistently report shortages in health care, construction, manufacturing, hospitality, and agriculture.

Alberta approved 2,868 LMIAs during the same period, reflecting demand in energy-linked industries and food services. Atlantic Canada recorded smaller but steady numbers, led by Nova Scotia with 779 approvals. Saskatchewan and Manitoba approved 752 and 452 applications, respectively, while the territories collectively issued 66 LMIAs.

Why LMIA Approvals in Canada Keep Rising

The rise in LMIA approvals in Canada is not driven by a single sector. Instead, it reflects long-term shifts in demographics, an aging population, and uneven regional labour supply. Many roles approved through the Temporary Foreign Worker Program are physically demanding, seasonal, or located in rural areas where recruitment challenges persist year after year.

It is also important to clarify what these approvals mean. A positive LMIA does not guarantee that a foreign worker will arrive in Canada. Employment and Social Development Canada assesses labour market impact, but Immigration, Refugees and Citizenship Canada makes the final decision on work permits. Some approved positions remain unfilled due to processing delays, documentation issues, or changing employer needs.

Another factor influencing the data is Canada’s full transition to the NOC 2021 and TEER-based classification system. This update has improved occupational reporting, allowing clearer tracking of skill levels and workforce trends across regions.

As Canada moves into 2026, federal signals suggest tighter monitoring of temporary worker programs. Still, the scale of approvals seen in 2025 indicates that employers will continue to depend on foreign workers, particularly in sectors essential to economic stability.

At the policy level, the challenge lies in balancing labour demand with sustainable immigration planning. Without meaningful domestic workforce growth, LMIA volumes are unlikely to decline quickly. The sharp increase in LMIA approvals in Canada during 2025 highlights a labour market under sustained pressure, where temporary foreign workers remain a vital part of the economic equation despite ongoing policy recalibration. Stay informed on labour market trends, LMIA policy updates, and work permit developments by following Canada Immigration News.