The federal government’s deep cuts to allocations for their Provincial Nominee Programs immigration have sent shock waves across the provinces, especially those directly affected.
On This Page You Will Find:
- Overview of Immigration Cuts: Insight into how Ottawa’s decision to reduce immigration allocations impacts programs like the Nova Scotia Nominee Program (NSNP) and the Atlantic Immigration Program (AIP).
- Industry and Economic Impacts: Analysis of how sectors like construction, hospitality, and healthcare will be affected by labour shortages.
- Provincial Responses: Statements and actions from provincial leaders reacting to these changes.
- Foreign Worker Concerns: Perspectives from affected international workers and students.
- Potential Federal Adjustments: Possibilities for additional allocations and collaborative solutions.
Industries in Nova Scotia concerned over Ottawa’s drastic reductions in immigration allocations, warning of dire consequences for sectors such as construction and hospitality. The federal government, citing Canada’s ongoing housing crisis, has halved the immigration quotas for the Nova Scotia Nominee Program (NSNP) and the province’s slice of the Atlantic Immigration Program (AIP), leaving businesses struggling to address critical labour shortages.
Severe Cut to Allocations
In fall 2024, Ottawa announced plans to reduce immigration numbers, but the full extent of these reductions has now been disclosed. Nova Scotia’s combined immigration allocations for the NSNP and AIP have been slashed from 6,300 in 2023 and 2024 to 3,150 in 2025. This includes:
- NSNP: Reduced from 3,570 to 1,785.
- AIP: Reduced from 2,730 to 1,365.
Duncan Williams, CEO of the Construction Association of Nova Scotia, criticized the move as “short-sighted” and “irresponsible,” stating that it undermines years of effort to attract skilled immigrants to the province. The construction sector, already grappling with workforce shortages, faces additional challenges as fewer workers are available to address the housing shortage.
Impact on the Construction Industry
The reduction comes despite provincial initiatives such as the Critical Construction Worker Pilot, launched in October 2023 under the NSNP, to attract skilled workers to build much-needed housing. Williams expressed frustration: “We’re bringing in people who need housing, not enough of the people who can build it.”
Alex Davidson, owner of Homes Construction, echoed this sentiment, emphasizing the industry’s dependence on foreign workers. “There’s just not enough able-bodied people in Canada with the age and skill set to fill these positions,” he said. Davidson’s team of foreign workers is now uncertain about their future, with many fearing their permanent residency prospects diminishing.
Hospitality Sector
The hospitality industry, another major employer of foreign workers, is also reeling from the news. Janick Cormier, Atlantic vice president for Restaurants Canada, warned that the cuts would have a “devastating impact” on an already struggling industry.
“Fifty-three percent of our operators are either operating at a loss or barely breaking even,” Cormier said. “Reducing staff will force businesses to cut hours or close entirely, especially in rural areas where labour shortages are most acute.”
For small-town businesses, the reduced hours could mean a loss of revenue that pushes them over the brink. “These are the neighbourhood spots we love—places that might have to close their doors permanently,” Cormier said.
International students
Canada’s Immigration Levels Plan 2025-2027 introduces significant developments for international students. The plan aims to welcome 305,900 new international students annually through 2027, surpassing the number of new temporary foreign workers. Other developments include:
- The government will prioritize in-Canada transitions to permanent residency (PR), with over 40 percent of PR admissions in 2025 likely to be students or workers already in Canada.
- Provincial Nominee Program (PNP) allocation targets will face drastic cuts, making pathways more competitive:
- The 2025 target is 55,000, down from 110,000 in 2024.
- The plan emphasizes in-demand occupations with category-based PR selection, prioritizing sectors that can enhance the PR eligibility of students on Post Graduate Work Permits (PGWPs). These areas include:
- Healthcare
- Trades
- STEM (Science, Technology, Engineering, and Mathematics)
- Transport
Provincial Responses
Nova Scotia Immigration Minister Nolan Young took a pragmatic approach, stating, “We’ll work within this allotment.” He emphasized the province’s commitment to prioritizing labour shortages in key sectors such as construction and healthcare.
In contrast, Newfoundland and Labrador’s Immigration Minister Sarah Stoodley expressed shock at the reductions. The province’s allocation for economic immigration has been cut from 3,050 to 1,525, leaving the province with tough decisions about which critical roles to prioritize. Stoodley warned of “significant economic implications,” particularly for sectors such as healthcare, where international recruitment has been pivotal in addressing staffing shortages.
“This will force us to make ruthless prioritizations,” Stoodley said, highlighting the challenge of balancing the needs of early childhood education, healthcare, and housing.
Impact on Foreign Workers
For foreign workers, the cuts bring uncertainty and stress. Felipe Carvajal, who moved from Colombia to Souris, P.E.I., to work in a potato packing plant, is concerned about his prospects for permanent residency. “It’s all stressful for me. The numbers keep decreasing, and it’s getting more difficult to get PR,” he said.
Workers like Carvajal are not alone. Across Atlantic Canada, foreign workers who have integrated into local communities and contributed to the economy now face an uncertain future.
Possible Federal Government Adjustments
The federal government has justified the cuts as necessary for sustainable population growth, citing strain on housing, infrastructure, and social services. However, Minister of Immigration, Refugees, and Citizenship Mark Miller has shown that provinces committed to shared priorities, such as addressing asylum seeker needs, may have opportunities for additional allocations.
Economic Growth
Businesses and industries argue the cuts are counterproductive, as immigrants are crucial to addressing labour shortages that hinder economic growth. In particular, the construction and hospitality sectors warn that fewer immigrants mean slower housing development and reduced service availability, exacerbating existing challenges.
Jason Lee, CEO of P.E.I. Seniors Homes noted that while healthcare remains a priority sector, the ripple effects of reduced immigration quotas could still impact long-term care. “Healthcare is a high priority, but these changes could create low-risk yet real threats to recruitment,” he said.
Industry Leaders React
Leaders across industries are calling on the federal government to reconsider its approach. They argue that immigration is not merely a numbers game but a vital component of Canada’s economic resilience and community development.
“We need immigrants—not just for their labour but for the vitality they bring to our communities,” said Davidson. Foreign workers like Carvajal, who dream of building a future in Canada but now face significant barriers, share this sentiment.
As provinces assess the long-term impact of these cuts, businesses and workers hope for a more balanced approach that recognizes the integral role immigration plays in addressing labour shortages and driving growth in Atlantic Canada.
Canada’s immigration cuts are a stark reminder of the delicate balance between economic needs and infrastructure limits. A collaborative approach between provinces and Ottawa ensures that immigration policies meet Canada’s economic and social goals.
FAQ: Understanding the Impact of Canada’s Immigration Cuts
Why is the federal government cutting immigration quotas for provinces?
The federal government has halved immigration quotas for programs like NSNP and AIP, citing the housing crisis and the need for sustainable population growth. By aligning immigration targets with infrastructure and social service capacity, Ottawa aims to address strain on housing, health, and education systems while balancing short- and long-term goals.
How will these cuts affect industries in Atlantic Canada?
Industries like construction and hospitality face severe labour shortages due to the cuts. Reduced quotas hinder recruitment efforts for skilled workers, delaying housing projects and forcing businesses to cut hours or close, particularly in rural areas. Sectors like healthcare may also struggle to meet critical staffing needs.
What are the provincial governments doing to address these changes?
Provinces like Nova Scotia are prioritizing key sectors such as healthcare and construction within the reduced allocations. Newfoundland and Labrador, however, have expressed shock at the reductions, warning of tough decisions regarding critical roles like early childhood education and housing.
How do these changes impact foreign workers and students?
Foreign workers and international students face greater competition for permanent residency as quotas decrease. Many worry about their future prospects and the stress of securing pathways to stay in Canada. The changes also prioritize workers in in-demand sectors like healthcare, trades, and STEM.
Is there any possibility for adjustments to the quotas?
The federal government has indicated that provinces addressing shared priorities, such as asylum seeker needs, may have opportunities for additional allocations. However, industries and provincial leaders continue to advocate for a more balanced approach that aligns economic needs with immigration policies.