Canada is facing an unprecedented immigration crisis as over 2 million work permits are set to expire between 2025 and 2026, with Indian nationals expected to account for nearly half of those at risk of losing legal status. The situation has intensified following stricter immigration policies implemented by the Mark Carney administration.
Mass Work Permit Expiries: The Numbers
According to data from Immigration Refugees and Citizenship Canada (IRCC), approximately 1,053,000 work permits expired by the end of 2025. An additional 927,000 permits are scheduled to lapse in 2026, creating a potential legal status crisis for temporary foreign workers across the country.
Immigration consultant Kanwar Seirah, based in Mississauga, obtained these figures and shared them with Hindustan Times. He estimates that by mid-2026, Canada could have at least 2 million undocumented immigrants, with Indians representing roughly half of this population.
What Happens When Work Permits Expire?
When a work permit expires in Canada, the holder immediately loses legal status unless they:
- Secure another valid visa
- Successfully transition to permanent residency
- Apply for restoration within 90 days
However, these pathways have become increasingly limited under the current administration’s immigration reforms. The restoration process itself presents significant challenges, including high costs, work prohibition during processing, and approval times that can extend for months.
Signs of Crisis Already Emerging
Evidence of strain is already visible in the Greater Toronto Area. Tent encampments have appeared in wooded areas of Brampton and Caledon, according to Seirah’s observations.
Brampton-based journalist Nitin Chopra documented one such encampment and reported anecdotal evidence of:
- Out-of-status Indian immigrants working for cash payments
- Informal operators establishing bureaus that arrange marriages of convenience
- Growing underground economy for undocumented workers
Activist Response to Work Permit Crisis
The mounting uncertainty has prompted activist organizations to mobilize. Naujawan Support Network, which advocates for workers’ rights, is planning protests in January 2026 to address expiring permits and the lack of legal pathways for immigrant workers to remain in Canada.
Mark Carney Administration’s Immigration Policy Changes
New Immigration Caps Through 2028
Prime Minister Mark Carney’s government has announced significant caps on immigration numbers extending until 2028. These restrictions affect multiple categories:
Permanent Residency: Targets reduced to 380,000 in 2026
Temporary Foreign Workers: Sharp decrease in intake numbers
International Students: Reduced student visa approvals
Refugees: Lowered refugee admission quotas
Temporary Foreign Worker Program Overhaul
In September, the government announced a comprehensive overhaul of the Temporary Foreign Worker Program. Carney stated the country needed “a focused approach” that better targets labor needs while easing pressure on:
- Housing infrastructure
- Social services
- Healthcare systems
The administration has also announced plans to reduce the proportion of non-permanent residents from approximately 7% of the population to 5% by the end of 2027.
Why Is Canada Restricting Immigration?
Population Growth and Infrastructure Strain
Between 2022 and 2023, Canada admitted nearly 1.2 million newcomers, including both permanent residents and temporary permit holders such as international students and foreign workers. This surge drove Canada’s fastest population growth since the 1950s.
However, this rapid expansion has placed severe pressure on national resources and infrastructure.
Housing Affordability Crisis
Public concern over housing has intensified alongside immigration increases. Key findings from recent surveys include:
Angus Reid Institute Survey: 28% of Canadians are seriously considering leaving their current province due to housing affordability issues
Ekos Survey: 44.5% of Canadians attribute the housing crisis to high immigration levels
Healthcare System Capacity Issues
Canada’s healthcare system is operating under acute stress. Hospital emergency rooms across the country are functioning beyond capacity due to shortages of doctors and clinics, compounded by a rapidly expanding population requiring medical services.
External Political Pressures
External factors have also influenced Canada’s immigration policy shift. Calls from the United States under President Donald Trump to curb immigration and address trade imbalances through measures including high tariffs have added pressure on the Carney administration to tighten immigration controls.
What This Means for Indian Immigrants in Canada
The convergence of mass work permit expiries, restricted immigration pathways, and policy changes creates a perfect storm for Indian immigrants in Canada. With limited options for legal status maintenance and narrow pathways to permanent residency, many face the prospect of becoming undocumented or being forced to leave the country.
The situation represents not only a humanitarian concern but also a significant policy challenge for the Canadian government as it attempts to balance labor market needs, public opinion, and infrastructure capacity while managing one of the largest immigration crises in recent Canadian history.
