Canada Set to Revamp LMIA-Exempt Work Permits in 2026

January 27, 2026
CIC News Update
Canada, Work
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Canada’s temporary foreign worker framework is preparing for a year of significant transition. In 2026, multiple updates affecting LMIA-exempt work permits are expected to reshape how foreign workers, international graduates, and humanitarian entrants access employment authorization. From higher intake targets to policy expirations and legislative reform, the year ahead will bring both opportunities and uncertainty for temporary residents.

This article outlines the most important developments foreign workers and employers should be aware of.

Also Read Big Updates Coming to Canada’s LMIA-Exempt Work Permits in 2026

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Canada Raises Intake Targets for LMIA-Exempt Workers

The federal government has confirmed a substantial expansion in the number of LMIA-exempt work permits to be issued in 2026.

Under Canada’s latest Immigration Levels Plan, admissions through the International Mobility Program (IMP) have been increased to 170,000 new entrants, marking a sharp rise from the previous planning figure of approximately 128,700. This represents one of the largest year-over-year increases for LMIA-exempt foreign workers.

It is important to note that this target reflects new admissions only. Extensions or renewals of existing work permits, as well as permits issued to individuals already in Canada, are not counted in this figure.

At the same time, the government has reduced planned admissions under the Temporary Foreign Worker Program (TFWP), which relies on LMIAs. The revised target for LMIA-based permits in 2026 is 60,000, down significantly from earlier projections.

This shift signals a broader policy preference for employer-specific exemptions, international agreements, and mobility-based work authorization over labour market testing.

PGWP Eligibility List Frozen for 2026

International students planning to work in Canada after graduation will see stability, but no expansion, in PGWP eligibility this year.

Immigration, Refugees and Citizenship Canada (IRCC) has announced that the list of PGWP-eligible fields of study will remain unchanged throughout 2026. This means no new programs will be added, and none will be removed, during the year.

Currently, graduates from non-degree programs must complete a course of study aligned with an identified labour shortage to qualify for a Post-Graduation Work Permit. This requirement applies to students who submitted their initial study permit applications on or after November 1, 2024.

Graduates of bachelor’s, master’s, and doctoral programs remain exempt from field-of-study restrictions.

At present, more than 1,100 academic programs remain eligible for PGWPs. Earlier plans to remove nearly 180 programs have been deferred, and those programs will now continue to qualify for the remainder of 2026.

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Why the Government Paused PGWP Program Changes

The decision to freeze PGWP eligibility is linked to a broader overhaul of Canada’s academic classification system.

IRCC is preparing for the eventual replacement of the current Classification of Instructional Programs (CIP 2021) with CIP Canada 2027, a new framework being developed by Statistics Canada. The updated system is expected to modernize how post-secondary programs are categorized based on curriculum and labour market relevance.

Since the new CIP version is not expected to be released until late 2027 or early 2028, the government has opted to maintain the existing PGWP eligibility list rather than make piecemeal adjustments.

Uncertainty Around Special Work Permits for Provincial Nominee Candidates

A temporary public policy that allows certain provincial nominee candidates to obtain LMIA-exempt work permits is approaching a critical deadline.

The policy, which enables provinces and territories to support work permits for eligible nominees for up to two years, is currently set to expire on December 31, 2025. Programs in Manitoba and Yukon have actively used this pathway to retain skilled workers awaiting permanent residence.

To qualify, applicants must meet several criteria, including:

Holding valid work status at the time of application (or having maintained status as of May 2024)
Having ongoing employment in the province
Securing official support from the provincial or territorial government

As of mid-2026, IRCC has not confirmed whether this policy will be extended or replaced, leaving many nominees unsure about their future work authorization.

Temporary Work Permits for Ukrainians Near Expiry

Work permits issued under Canada’s humanitarian response to the war in Ukraine may soon come to an end.

The special policy supporting Ukrainians and their family members who arrived under the Canada-Ukraine emergency travel measures is scheduled to expire on March 31, 2026. The policy allows eligible individuals to obtain open work permits and study permits without standard processing barriers.

If the policy is not renewed, those holding permits under this framework will need to transition to another legal status to remain in Canada, as extensions would no longer be available.

No official announcement has yet been made regarding a possible continuation of this program.

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Iranian Nationals’ Work Permit Policy Also Ending

Another temporary humanitarian measure affecting Iranian nationals is set to lapse in early 2026.

The public policy permitting Iranians in Canada to apply for work and study permits without standard restrictions is scheduled to expire on February 28, 2026. Eligibility is limited to individuals who entered Canada on or before February 28, 2025.

As with other temporary policies, the federal government has not indicated whether an extension will be granted, leaving thousands of permit holders in a state of uncertainty.

Bill C-12 Could Expand Federal Powers Over Work Permits

Beyond program-specific changes, a major legislative development may fundamentally alter how work permits are managed in Canada.

Bill C-12, currently before Parliament, proposes broad new powers for the federal cabinet to intervene in immigration processing when deemed necessary for public interest reasons. If enacted, the law would allow the government to:

Pause or stop accepting work permit applications
Suspend or cancel issued permits
Impose new conditions on temporary residents

These powers could be exercised in response to concerns related to fraud, public health, safety, or national security.

The bill has already passed the House of Commons and is expected to proceed through the Senate in early 2026. Historically, Senate rejection of government bills is rare, making eventual passage likely.

New Sector-Specific Work Permit in Development

IRCC has also confirmed plans to introduce a sector-focused work permit for jobs in agriculture and fish processing.

Developed in collaboration with Employment and Social Development Canada (ESDC), this new permit aims to address chronic labour shortages in food production industries. While the concept has been confirmed in departmental planning documents, details such as eligibility rules, duration, and launch timelines have not yet been released.

What Foreign Workers Should Watch in 2026

Canada’s approach to temporary labour migration is clearly evolving. Higher intake targets for LMIA-exempt workers suggest expanded access, but expiring public policies and potential legislative changes introduce new risks.

Foreign workers, international students, and employers should closely monitor announcements from IRCC in the coming months, particularly regarding policy extensions and the progress of Bill C-12.

Staying informed and seeking professional guidance where necessary will be essential as Canada’s work permit landscape undergoes one of its most consequential transitions in years.

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