The federal government introduced a new system on Oct. 17, 2025, to track whether immigration department staff are following in-office work requirements. CTV
Canada’s immigration system faces growing strain as backlogs climb and policy shifts create uncertainty, according to a national association of immigration lawyers. New figures and recent decisions, they say, have pushed the system into a critical phase that affects newcomers, schools, and businesses alike.
Backlogs Reach Historic Levels
Data from Immigration, Refugees and Citizenship Canada show that more than one million applications sat in backlog as of Oct. 31, 2025. Another one million applications remain within standard processing times. Together, these figures bring the total number of files in the system to more than two million.
Lawyers say the system struggles to keep up with this volume. Rick Lamanna, a board director with the Canadian Immigration Lawyers Association and a partner at Fragomen Canada, pointed to staffing levels as a key concern.
“One of the major issues is the downsizing of staff to pre-pandemic levels,” Lamanna said. He explained that application numbers remain far higher than before COVID-19. “There’s only so much you can do with so many people.”
Technology Falls Short
The federal department says it relies on advanced technology, including automation and artificial intelligence, to speed up decisions and reduce wait times. Lamanna acknowledged the effort but said the tools have not delivered results yet.
“AI technologies, at this point, are not solving the problem of anything,” he said. “It’s resulting in some very wonky decision-making at best (and suspicious at worst.”
Student Permit Cuts Shake Universities
Last November, the federal government announced it would issue 408,000 study permits in 2026. The target marked a seven per cent drop from the previous year and a 16 per cent decrease from 2024. Officials said the move would ease pressure on housing, health care, and other services.
Universities, however, now face major financial challenges. Many institutions rely heavily on international student tuition. With fewer permits, schools have cut programs, reduced services, and seen enrolment fall.
Lamanna said the outcome did not surprise him. “For over a decade, you open the flood gates, and you don’t really have any sense of where these students are going and what programs (they) are graduating in,” he said. “Now, we’re in a situation where there are a lot of schools in big financial trouble.”
Mixed Messages to Students
Lamanna also questioned the government’s messaging. One day after announcing the cap, officials said Canada remained “open for business” for master’s and doctoral students and promised faster processing for those applications.
“That creates mixed messaging,” Lamanna said. He worries students abroad may look elsewhere if Canada appears uncertain. “We need to have a predictable system. This is what investors want. This is what businesses want.”
Labour Needs Clash With Policy
At the same time, Canada plans major infrastructure and development projects. A recent survey from KPMG Canada shows businesses preparing for large investments in the next 18 months.
Lamanna questioned how Canada will meet labour needs while cutting immigration numbers. “Who’s going to build them?” he asked. He stressed that Canada needs more skilled workers, not fewer. “We just need more people to do it.”
