Canada’s New 2025 PR Pathway for Out-of-Status Construction Workers

1. The Tripartite Advisory Council—Will It Address Real Labour Needs?

A key element of the announcement is the creation of a Tripartite Advisory Council, which will include representatives from the federal government, unions, and industry leaders. The goal? To identify labour shortages in the construction sector and advise on immigration pathways to fill those gaps.

On paper, this sounds like a positive step—bringing together key players to ensure that immigration policies align with labour market needs. However, a critical question remains:

Who will truly be represented in these discussions?

If the council is dominated by government officials and industry executives, there’s a real risk that the voices of actual construction workers—those working on job sites every day—will not be heard.

Take Miguel, a skilled carpenter from the GTA who recently became a permanent resident. Miguel shared his experience in a recent livestream, explaining that many trades workers like him are currently out of work, despite ongoing claims of labour shortages. If workers like Miguel are struggling to find jobs, will the council address these on-the-ground realities, or will it simply reinforce existing narratives?

For this initiative to succeed, it must include direct representation from skilled trades workers, ensuring that immigration policies are shaped by those who truly understand the labour market conditions.

2. Expansion of the Out-of-Status Construction Worker Pathway—A Well-Intentioned but Problematic Move

Another major policy change is the expansion of the Out-of-Status Construction Worker Pilot, which originally applied only to the Greater Toronto Area. Under this new initiative, the government plans to create a national pathway for undocumented construction workers to obtain permanent residence.

While this initiative is framed as a way to support the industry by retaining experienced workers already contributing to construction projects, it presents several complex challenges:

• Does it create an unfair advantage for those who did not follow legal immigration pathways? Many temporary foreign workers (TFWs) who followed the rules, paid significant fees, and complied with immigration requirements are still waiting for pathways to permanent residence. This expansion raises concerns about prioritizing those who worked without status over those who adhered to legal immigration processes.

• Does it encourage more undocumented work? If workers see a potential PR pathway for those out of status, it may incentivize more individuals to stay in Canada illegally, creating a problematic precedent for future policy decisions.

• Is labour supply really the problem? While retaining experienced trades workers is important, construction slowdowns are not solely due to labour shortages. High interest rates, expensive building permits, and economic uncertainty have made it increasingly difficult for developers to start or complete housing projects. If construction projects aren’t moving forward, increasing the labour force may not have the intended effect.

Rather than expanding pathways for undocumented workers, a better solution would be to create clear, structured transition programs for legal workers already in Canada, ensuring that those who followed the rules are prioritised in immigration pathways.

3. Support for Foreign Apprentices—A Welcome Change with Some Challenges

One of the more promising elements of the announcement is the temporary exemption allowing foreign apprentices to study without a study permit in certain construction trades.

This move could create meaningful opportunities for individuals who want to complete trade certification in Canada. However, one key barrier remains—employers still face significant challenges obtaining LMIAs (Labour Market Impact Assessments) for apprentices.

Without clear LMIA support for apprentices, this initiative may not be as effective as intended.

If the government wants to truly support foreign apprentices, it needs to ensure that:

• Employers can legally hire and retain apprentices through LMIA approvals.

• Workers on existing open work permits have clear pathways to transition into apprenticeships.

• The program is widely accessible across provinces, rather than being limited by regional restrictions.

This policy has real potential, but its success will depend on whether the government provides the necessary support for employers and apprentices alike.

4. The Bigger Picture—Are We Addressing the Right Issues?

A crucial question that often gets overlooked in these discussions is whether labour supply is actually the biggest issue preventing housing construction. While skilled trades workers are essential, construction slowdowns are driven by more than just labour shortages.

Miguel and other workers from the GTA report that many construction professionals are currently out of work—not because there aren’t enough projects, but because high borrowing costs, slow permitting processes, and financial uncertainty are limiting new developments.

If demand for new housing isn’t keeping pace, then increasing the supply of workers alone won’t necessarily translate into more homes being built.

A More Effective Approach to Immigration & Housing

For Canada to truly address its housing challenges, immigration policies must be designed with the full picture in mind. That means:

• Prioritizing pathways for legal workers already in Canada, ensuring they have clear opportunities to transition into the trades.

• Making sure the Tripartite Advisory Council includes real worker representation, rather than being dominated by political and industry figures.

• Reducing barriers to housing construction, including high permit costs, bureaucratic delays, and financial challenges for developers.

• Refining the foreign apprentice initiative to ensure employers can easily hire and retain apprentices.

• Carefully assessing the impact of expanding the Out-of-Status Construction Worker Pathway, to avoid incentivizing undocumented work.

Final Thoughts

Canada’s immigration policies must be fair, effective, and focused on long-term solutions. While there are elements of this announcement that could have a positive impact—particularly the support for apprentices—other aspects require more careful evaluation.

Rather than focusing on pathways for those out of status, Canada should prioritise supporting those who have followed legal immigration channels, ensuring that our construction workforce remains strong while maintaining the integrity of our immigration system.

At Holthe Immigration Law, we will continue to monitor these developments closely and provide insights on how these policies impact workers, employers, and the broader housing market. If you have questions about your own immigration options or how these changes might affect you, don’t hesitate to reach out.

Stay informed, stay prepared, and as always—understand your immigration options before making any major decisions.