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Immigration law changes: Here’s what Ottawa employers need to know in 2025

If you’re an employer in Ottawa, you’ve probably noticed how hard it can be to find the right people with the right skills. Local talent is strong, but in many industries—from healthcare to specialized trades—the shortage of qualified workers continues to pinch. Immigration is one way businesses address those gaps.

The challenge? Immigration rules in 2025 are more complex than ever. From new restrictions on work permits to longer processing times, employers need to stay sharp to remain compliant and competitive. At LIVIN Immigration Services, we work with organizations across the region to make sense of these developments. Below, we outline the most important updates and the steps you can take to stay prepared.

Lower immigration targets, higher competition

Canada’s Immigration Levels Plan for 2025–2027 sets out reduced permanent resident admissions compared with previous years. The federal government aims for 395,000 new permanent residents in 2025, falling to 380,000 in 2026 and 365,000 in 2027. Temporary resident admissions, which include workers and students, are also capped at lower levels—around 673,650 in 2025, dropping sharply in 2026.

Unfortunately, this means greater competition for available permits and permanent residency spots. Businesses that rely on international recruitment will need to plan earlier and consider multiple pathways for candidates.

Families and spouses: A new reality

Another big shift arrived in January 2025. Spousal open work permits, which once gave families more flexibility, are now restricted. Only spouses of students in master’s or doctoral programs, or in certain licensed professions, qualify. Spouses of temporary workers must fall into higher TEER categories (management and certain skilled trades). Children of foreign workers? No open work permits at all.

What this means on the ground: a skilled candidate might decline an offer in Ottawa if their partner can’t work here too. Employers now need to consider the “whole family picture” when extending offers, because immigration policy has narrowed the options.

The LMIA advantage? Gone.

Until this year, one of the strongest ways to help a foreign worker transition to permanent residence was through an LMIA-backed job offer. That offer gave candidates a significant CRS points boost in Express Entry. As of spring 2025, that boost no longer exists

Now, employers can’t rely on arranged employment to push their candidates over the line. Education, language skills, and Canadian work experience weigh more heavily in the ranking. For Ottawa businesses that used LMIA strategically, this is a major recalibration.

Wage thresholds and regional rules

For companies that turn to the Temporary Foreign Worker Program, there are two important updates in 2025:

Wage threshold for LMIA stream determination increases : Since June 27, 2025, new, higher wage thresholds apply. A job offer that met the high -wage standard last year may now qualify for low-wage stream

Regional restrictions: From July 11, 2025, employers in census metropolitan areas with 6%+ unemployment can no longer apply for low-wage LMIAs unless exempt If Ottawa’s labour market shifts, certain industries — hospitality, retail, services — could lose access to this pathway entirely.

For a restaurant owner or a manufacturing firm, these changes aren’t abstract. They determine whether that kitchen, assembly line, or workshop will have enough hands next year.

A small win: easier job changes for workers

Not all updates make life harder. In May 2025, IRCC extended a policy allowing closed work permit holders to switch employers or occupations before a new permit is officially issued.

This gives workers more mobility and reduces their risk of being stuck in unsuitable roles. For employers, it can mean faster hiring if a candidate is already in Canada and looking to transition.

The applicant must meet eligibility criteria and send a request to IRCC to start working for a new employer when their new work permit application is in process.

What Ottawa employers should do now

With these rules in play, how can businesses adapt? A few key strategies:

  • Review compensation offers carefully. With wage thresholds rising, job offers that barely met prior requirements may fall short now. This may raise labour costs.
  • Adjust hiring timelines. With longer processing times for work permits, limitations on open work permits for spouses, and the removal of LMIA points in Express Entry, early planning is more important than ever.
  • Evaluate candidates’ eligibility beyond job offers. Given the removal of “arranged employment” points, other CRS factors (language skills, education, Canadian work experience) become more pivotal for permanent residence.
  • Monitor policy regarding employer-specific/closed work permits. The allowance to change employer/occupation under certain conditions reduces risk, but it has strict rules. Employers need to understand the eligibility, supportive documents, and the notification/approval process.
  • Ensure compliance and documentation. Because of suspended LMIA eligibility in some regions and increased inspections, having accurate records (wage paid, job descriptions, proof of domestic recruitment efforts) is essential. Delays or mis-documented LMIA applications may lead to refusals or penalties.

How LIVIN Immigration can assist

Expert LIVIN Immigration Consultant Ottawa sees these challenges up close. Whether it’s a construction company facing higher wage thresholds or a startup realizing its LMIA-backed job offer no longer carries CRS weight, we help employers navigate the fine print. Our role is to anticipate roadblocks, adapt hiring strategies, and keep recruitment plans on track despite shifting policies.

Looking ahead

Immigration remains a cornerstone of Canada’s workforce strategy, even with the recent pullback. For Ottawa businesses, success in 2026 will depend on understanding the changes, adapting quickly, and acting strategically. The rules may have tightened, but opportunities remain for those who plan with care and precision.

If you’d like to see how these updates affect your specific situation, connect with our consultant for personalized guidance.

Justyna Dzioch is the Founder and Lead Immigration Consultant at LIVIN Immigration Services Inc., a trusted firm dedicated to helping individuals and families navigate the complexities of Canadian immigration. Her deep expertise and client-focused approach have set a new standard for professionalism and integrity in the industry. Justyna’s commitment to transparency, empathy, and excellence has inspired other consultants to raise the bar—making the immigration process more accessible, supportive, and human for people from all over the world.

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