By Mata Press Service

Prime Minister Mark Carney's ambitious plans to attract $1 trillion in investment and rebuild Canada's economy are facing growing criticism from immigration lawyers, business groups and newcomer advocates who warn that Ottawa's immigration restrictions could undermine those very goals.

The backlash follows the release of the federal government's latest budget and 2027-2029 Immigration Levels Plan, which maintain sharply reduced immigration targets while promising major investments in infrastructure, housing and economic development.

The Canadian Immigration Lawyers Association (CILA), the Ontario Council of Agencies Serving Immigrants (OCASI), the Canadian Council for Refugees and the Migrant Rights Network have raised concerns about the impact of the government's policies on Canadian employers, immigrant families and the country's economic future.

Their warnings centre on whether Canada can deliver its promised economic expansion while restricting access to skilled workers, entrepreneurs, international students and other newcomers.

Under the latest plan, permanent resident admissions will remain at 380,000 annually through 2029, down from nearly 484,000 in 2024.

New temporary resident arrivals, including foreign workers and international students, will be limited to 370,000 annually, compared with more than 971,000 in 2023.

Ottawa says the reductions are necessary to ease pressure on housing, healthcare and public services while restoring public confidence in Canada's immigration system.

But critics warn the cuts could aggravate labour shortages, discourage investment and leave thousands of immigrants already living and working in Canada facing uncertain futures.

In its submission, CILA said Canada's immigration strategy must be closely linked to its economic development plans.

"Investment without an adequate workforce cannot deliver projects, while immigration without corresponding investment, employment opportunities, and economic development cannot realize its full potential," the association said.

The lawyers warned that broad immigration reductions could hurt employers struggling to recruit workers in construction, healthcare, agriculture and other essential sectors.

They also criticized the suspension of federal business immigration pathways, including the Self-Employed Persons Program and Start-Up Visa Program, saying Canada risks losing foreign entrepreneurs and their investments to competing countries.

CILA wants Ottawa to restore credible pathways for entrepreneurs capable of establishing businesses, investing capital and creating jobs.

The association also pointed to growing immigration processing delays.

In May 2026, Immigration, Refugees and Citizenship Canada had approximately 2.09 million applications in its inventory, including more than 941,000 that had exceeded established processing standards.

Only 47 per cent of permanent residence applications were being processed within those standards.

Some caregivers could face waits of approximately 76 months, leaving applicants and Canadian families dependent on their services in prolonged uncertainty.

CILA is calling for an overhaul of Canada's Express Entry system, greater accountability over processing delays and stronger protections for applicants affected by sudden policy changes.

The criticism has been reinforced by OCASI, which represents immigrant and refugee-serving agencies across Ontario.

In its budget response, OCASI welcomed Ottawa's proposed opportunities for up to 200,000 temporary residents already in Canada to obtain permanent residence by the end of 2027.

However, it warned that many international graduates, low-wage migrant workers, seasonal workers and undocumented residents would remain without clear pathways to permanent status.

The organization also raised concerns about successive federal funding reductions affecting settlement agencies that help newcomers find employment, learn English or French and establish themselves in Canada.

A survey of 75 organizations cited by OCASI found that 69 per cent reported staff layoffs, 52 per cent were offering fewer services and 32 per cent had experienced disruptions to language training.

"These are not simply numbers on a government spreadsheet. They are decisions that affect people's lives and futures," said Debbie Douglas, OCASI's executive director.

Douglas warned that immigration restrictions could separate families, expose vulnerable workers to exploitation and reduce access to services newcomers need to succeed.

Similar concerns have been raised nationally by immigrant-serving organizations representing more than 500 community agencies, including the Affiliation of Multicultural Societies and Service Agencies of B.C.

The Migrant Rights Network has also questioned Ottawa's proposed permanent residence measures, saying they would exclude most temporary residents already contributing to Canada's economy.

"These additional spaces recognize the injustice facing migrants who already live and work here, but what about the millions of migrants shut out of existing programs, who are also building and sustaining the economy?" spokesman Syed Hussan told New Canadian Media.

The network estimates that hundreds of thousands of undocumented people also live in Canada without access to permanent immigration status.

Business representatives have expressed concerns about retaining foreign workers already employed by Canadian companies.

Corinne Pohlmann, executive vice-president of advocacy at the Canadian Federation of Independent Business, said creating permanent residence opportunities for temporary foreign workers could help employers.

"Creating a path to permanency for temporary foreign workers in Canada has the potential to be a positive step, and we await more details about the rollout of that program," she said.

Meanwhile, the Canadian Council for Refugees warned that Ottawa's latest immigration plan places a disproportionate burden on people seeking humanitarian protection.

The organization said government-assisted refugee admissions would fall to 11,750 in 2027, compared with 23,550 in 2023.

"The further cuts to Government-Assisted Refugees after years of decline is shocking and not in keeping with Canadians' expectation of global refugee leadership from their government," said council president Asma Faizi.

The organization also warned that refugees already accepted for protection in Canada can face waits exceeding three years before being reunited with family members overseas.

The concerns echo findings from Ottawa's own immigration consultations, which gathered more than 16,000 responses from businesses, educational institutions, community organizations and individual Canadians.

Participants warned about labour shortages, processing delays, declining international student enrolment and uncertainty over permanent residence pathways.

However, the government's immigration restrictions retain considerable public support.

A Nanos Research survey released shortly before the budget found that 52.3 per cent of respondents wanted Canada to accept fewer immigrants and temporary residents in 2027, while 33.5 per cent favoured maintaining current levels.

Budget 2026 includes funding for immigration transition measures and Temporary Foreign Worker Program reforms intended to better address regional labour needs.

But critics warn that Canada risks weakening its economic ambitions if immigration reductions are implemented without sufficient regard for employers, workers and families.