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Canada Revamps Immigration to Solve Construction Labor Shortage

Writer
SK
Date of issue
2025-04-10
Views
120

 

 

 

 

Canada Revamps Immigration to Solve Construction Labor Shortage

 


 

 

Main Point Summary

 

 

 

  • The Canadian government overhauled its immigration policy to address a severe construction labor shortage.
  • A new pathway grants permanent residency to up to 6,000 foreign workers and eases apprenticeship program requirements.
  • The policy focuses on securing skilled workers and emphasizes practical experience in the construction field.
  • Category-based Express Entry now includes 19 construction-related occupations as priority targets.
  • An expanded program offers a path to legal status for undocumented construction workers across Canada.
  • A government-industry-labor advisory committee will guide decisions on labor demand, wage standards, and foreign worker intake.
  • Temporary changes permit apprenticeship training without a study permit for two years, requiring a valid work permit and job offer.
  • The policy aims to attract skilled labor to mitigate housing supply issues through long-term settlement strategies.
  • Open work permit holders and international students struggling to continue studies can benefit from new construction opportunities.
  • This approach signals Canada’s shift to selecting “who is needed now,” with healthcare and construction at the forefront.

“Not enough people to build houses”

The Canadian government has drastically revamped its immigration policy to address the severe labor shortage in the construction industry and the housing supply crisis. On March 7, 2025, Immigration, Refugees and Citizenship Canada (IRCC) held a press conference to officially announce a new permanent residency pathway tailored for the construction sector, along with various regulatory changes. This policy is considered not merely an adjustment of the immigration system but a comprehensive approach that interlinks the labor market structure, housing supply, and immigration policy.

 

There are two main changes. First, a new route grants permanent residency to up to 6,000 foreign workers engaged in construction while on a temporary visa in Canada. Second, foreign nationals holding a valid work permit can register for an official apprenticeship program without an additional study permit. Previously, participation in this program was impossible without a study permit, so this is a significant reduction of institutional barriers.

 

The aim of this measure is not merely short-term staffing but the long-term settlement of skilled workers. Currently, Canada faces nationwide economic instability due to a lack of housing supply, and the Canada Mortgage and Housing Corporation (CMHC) has stated that more than six million new homes will be needed by 2030. However, there is a lack of available labor to actually build these homes.

 

The Canadian construction industry particularly suffers from a shortage of skilled trades. Carpenters, plumbers, electricians, and concrete finishers are among the key trade positions facing labor shortages. Many local workers are reluctant to enter these fields, and a wave of retirements is aggravating the gap. Though about 23% of construction workers are already immigrants, the existing Express Entry system is designed to favor higher education and English proficiency, making it difficult for practical skilled workers to obtain permanent residency.

 

In response, Canada introduced Category-based Selection in 2023 to give priority to occupations it needs. On February 27, 2025, 19 construction-related occupations were newly added to the Express Entry priority invitation list. Construction managers, tile installers, concrete finishers, electrical technicians, and welders will now be able to undergo the permanent residency process more quickly.

 

Among the announcements made on March 7, a noteworthy point is the nationwide expansion of a program to regularize the status of undocumented construction workers. Starting in 2019, this pilot program operated only in the Toronto area of Ontario, and by the end of 2024, more than 1,300 undocumented workers had obtained permanent residency through it. This program has offered a path to legality for individuals without proper status who are working in construction, thereby helping to alleviate the shortage of construction labor.

 

Beginning in 2025, this program is expected to expand nationwide, providing permanent residency opportunities for those who meet certain requirements. These requirements are anticipated to include: ▲recent years of actual work experience in the construction sector in Canada, ▲undocumented status, ▲no serious criminal history, and ▲the likelihood of successfully settling in Canada. Factors such as job offers and community involvement may also be considered.

 

Notably, the new policy indicates a move away from a paperwork-centric approach, instead focusing on practical experience and real contributions. The government has stated that it will prioritize individuals who can actively contribute to Canadian society and the economy, rather than simply those who meet formal criteria on paper. This change benefits those in skilled trades who have real, hands-on expertise.

 

To ensure the policy’s effectiveness, the government plans to form an advisory committee with representatives from government, industry, and labor unions. This committee will offer counsel on labor demand, wage standards, and the volume of foreign worker intake. Minister Marc Miller stated that up to 14,000 foreign construction workers may enter Canada through this initiative, although whether they qualify for permanent residency will depend on forthcoming eligibility criteria.

 

Another noteworthy point is that individuals can now participate in apprenticeship programs without a study permit. The specific conditions for participating in an apprenticeship program are as follows:


▲Possessing a valid work permit
▲Having a job offer in an eligible construction occupation
▲Signing an apprenticeship agreement officially registered with a provincial or territorial government
This measure will operate for two years, from February 26, 2025, to February 26, 2027.

 

Ultimately, this policy goes beyond simply filling labor gaps; it represents a strategic approach by the Canadian government to attract and retain skilled workers, thereby addressing housing supply issues in the long term. Whereas Canada previously projected an “all are welcome” attitude, it is now apparent that the focus has shifted to “selecting precisely who is needed now,” with healthcare and construction at the center.

 

During the pandemic, Canada issued a large number of student and work permits, but the criteria have significantly tightened, leading to higher rejection rates and a more difficult application process. This has increased instability for those seeking to extend their stay. The new policy appears to offer another chance for people in uncertain situations—especially those with the skills Canada needs or those willing to develop those skills through on-the-ground experience—to settle in Canada.

 

The door to Canadian immigration is more open than ever for those working or skilled in construction, as well as for those just entering the field. In particular, open work permit holders or international students unable to continue their studies should consider taking full advantage of this opportunity. For prospective immigrants living abroad, accurately assessing this trend may present a strategically favorable moment to navigate Canada’s tightening immigration environment.