Business Owners Warn of Worsening Labor Shortages Amid Immigration Crackdown
Canadian Businesses Grapple with Labor Shortages as Immigration Policies Tighten
As Canadian businesses adapt to shifting U.S. tariff policies, a more pressing domestic issue is emerging: a tightening of Canada’s immigration rules, which is compounding labor shortages across the country.
“The biggest threat to our business is immigration policy and the lack of available workers,” said Blair Hyslop, co-owner of Mrs. Dunster’s Bakery in Sussex, New Brunswick.
Hyslop and his wife have expanded the bakery significantly since taking it over a decade ago. Now, as they plan to double the business again over the next three to four years, he’s facing a major hurdle.
“I can find new markets for our products,” he said. “But I can’t find new markets for labor.”
Of the bakery’s 275 employees, 56 are working under temporary permits — including Vinit Kumar, a 38-year-old food processor from India. Kumar moved to Canada three years ago to join his wife, a student. His work permit is set to expire next March.
“Sometimes I feel very blank,” Kumar said. “What should I do? Where should I go? I want to stay and I’ll try my best to do that.”
Kumar’s uncertainty is echoed by thousands of other foreign workers as Ottawa slashes immigration targets for international students, workers, and permanent residents. The government says the move is necessary to ease pressure on housing, infrastructure, and social services.
In New Brunswick, the number of permanent resident nominations has been cut in half — from 5,500 in 2024 to 2,750 this year. The province says healthcare, education, and construction will receive priority, with remaining spots divided among sectors like manufacturing, IT, agriculture, aquaculture, transportation, forestry, and hospitality.
“As things currently stand, there are substantially more foreign workers here than there are nominations available,” said Rebecca Howland, spokesperson for the Department of Post-Secondary Education, Training, and Labour.
While temporary residents may still qualify for extensions through the federal government, the province is urging Ottawa to reconsider its allocation for New Brunswick.
Hyslop is calling for a more regionally tailored immigration strategy.
“It’s a one-size-fits-all policy across the country,” he said. “But New Brunswick simply doesn’t have enough workers to meet demand.”
Immigration lawyer Andrea Baldwin warns the full impact of these changes hasn’t hit yet — but she believes the consequences will be especially severe in Atlantic Canada.
“Employers in IT, manufacturing, pharmaceuticals, and biotech are struggling to retain skilled talent,” she said. “For the first time in my career, I’m telling some clients there’s nothing we can do. That’s incredibly tough for both workers and employers.”
