Canadian businesses are sounding the alarm as the impact of reduced access to foreign workers is being felt far sooner — and more sharply — than anticipated, with some employers warning that the strain could soon force shorter operating hours or permanent closures.
Industry groups say recent changes to immigration and temporary foreign worker policies, combined with slower processing times and tighter eligibility rules, have left many sectors struggling to fill essential roles. Small and medium-sized businesses in hospitality, construction, agriculture, manufacturing, and healthcare support services appear to be among the hardest hit.
Business owners report that positions once filled reliably by temporary foreign workers or international graduates are now going vacant for weeks or months. In some cases, employers say they have already cut opening hours, reduced services, or delayed expansion plans because they simply cannot staff operations adequately.
“We expected some impact, but not this quickly,” said one restaurant operator, noting that labour shortages are colliding with rising costs for rent, utilities, and supplies. Others warn that without timely relief, seasonal businesses — particularly in rural and tourism-dependent regions — may not survive the year.
The federal government has defended recent immigration adjustments, saying the measures are intended to ease pressure on housing, infrastructure, and public services. Officials insist the system is being recalibrated, not shut down, and that labour market needs will continue to be considered. However, employers argue that the pace of policy change has outstripped the ability of businesses to adapt.
Economists caution that prolonged labour shortages could ripple through the economy, reducing productivity and weakening local communities. While some analysts say higher wages could eventually attract domestic workers, many employers counter that certain jobs remain difficult to fill regardless of pay, particularly in physically demanding or seasonal roles.
Business associations are urging Ottawa to introduce transitional measures, such as faster processing for high-demand occupations, temporary flexibility in worker caps, and clearer timelines for policy implementation.
As the effects continue to spread, many employers say the coming months will be decisive. Without swift adjustments, they warn, Canada could see not just reduced services — but a wave of closures that permanently reshape local economies.