Provinces warn Ottawa slashing immigration program in half will hurt economy

The recent announcement from the federal government regarding a 50 per cent reduction in allotted spaces for economic immigration programs has sparked concerns about the potential impact on labor and the economy. The provincial nominee programs (PNPs) utilized by all provinces and territories, except Quebec and Nunavut, are set to see a significant decrease in spots for 2025.

Saskatchewan, for example, is facing a cut to 3,625 spots, the lowest number since 2009. Drew Wilby, Saskatchewan’s deputy immigration minister, expressed the province’s reliance on the program, emphasizing its importance as a key driver of economic immigration. However, provinces like Saskatchewan were not consulted prior to the announcement of these cuts.

The reduction in immigration targets, with projected numbers dropping to 395,000 in 2025, down from 485,000, has raised concerns about the overall impact on the economy. The PNPs target workers with the skills to contribute to specific provinces or territories and who wish to become permanent residents in Canada.

Provinces like Ontario have expressed worries about the impact of these reductions on meeting employer demands and supporting economic growth. Many provinces are still figuring out how to navigate these changes, with some, like Yukon, pushing back accepting their first cohort of PNPs indefinitely to strategically address pressing labor market needs.

Alberta’s Immigration Department criticized Ottawa for imposing a 50 per cent reduction in provincial allocations while cutting overall immigration by 21 per cent, claiming it takes away decision-making autonomy from provinces and territories. New Brunswick’s Immigration Minister also raised concerns about sectors like trades, education, and health care struggling to fill vacancies with limited PNPs.

Federal Immigration Minister Marc Miller’s office stated that PNP allocations are determined in consultation with provinces and territories, emphasizing reduced admission targets across all categories. While provinces have discretion in utilizing their PNP allotment to meet community needs, concerns about the impact on newcomers and vulnerable migrants have been raised.

Immigration experts have highlighted the constraints placed on provinces and territories, with calls for a more tailored approach to address specific labor market needs. The federal government’s decision to reduce PNP allotments has sparked debate about the potential consequences on labor, the economy, and the immigration process as a whole.