More than 1.3 million temporary work permits are scheduled to expire across Canada this year, according to industry warnings. The Canadian Federation of Independent Business (CFIB) stated that 300,000 of these permits will lapse by the end of March alone.
The mass expiry coincides with record delays at the federal immigration department. Data from Immigration, Refugees and Citizenship Canada (IRCC) shows that processing times for inland work permits have reached a new high of 259 days.
Backlog reaches record levels
Applicants seeking to extend their stay or change their work status now face an average wait of eight and a half months. This figure represents the time required to process 80% of applications. The timeline has expanded consistently, adding 49 days to the wait since December 2025.
According to IRCC statistics, the backlog is growing at a rate of approximately five days every week. While study permit extensions have seen a decrease in wait times to 85 days, work permits have moved in the opposite direction for every reporting period this year.
The economic fallout could be massive if workers under the program are taken out of the equation.
Jonathan Galgay, who handles legislative matters for the CFIB, told reporters that the situation is critical for small businesses. He said many employers rely on the Temporary Foreign Worker Program (TFWP) out of necessity because local skilled labour is unavailable.
Regional impact in Newfoundland and Labrador
The impact is being felt acutely in Newfoundland and Labrador, where approximately 5,000 permit holders were recorded in 2024. Two-thirds of these individuals were employed through the TFWP, a federal initiative designed to fill specific labour gaps.
Mr Galgay said that changes in federal government policy have created the current situation. He argued that the onus is now on Ottawa to change course to prevent a significant labour shortage. Without these workers, many local businesses may struggle to maintain operations.
Consequences for workers
The delays extend beyond simple inconvenience for the hundreds of thousands of workers already in the country. Extended processing times create significant uncertainty regarding employment continuity and the ability to travel outside of Canada.
Furthermore, many temporary residents find their access to provincial health coverage and permanent residency pathways affected by the lack of valid documentation. While work permit wait times climb, visitor records—documents allowing tourists to stay longer—have also seen delays reach 245 days.
Industry experts suggest the volume of applications is systematically outpacing the capacity of the IRCC to clear them. If the current trend continues, processing times for inland work permits could exceed 300 days before the summer of 2026.
