08:20 AM EDT, 03/11/2026 (MT Newswires) -- More than 1.3 million work permits are set to expire by the end of 2026, and the economic fallout could be massive, warned the Canadian Federation of Independent Business (CFIB) on Wednesday.

Some estimates show more than 300,000 work permits are due to expire by the end of March alone.

CFIB urged the Canadian federal government to facilitate the retention of Temporary Foreign Worker Program (TFW) already in Canada through a grandfathering clause and provide a pathway to permanent residency for lower-skilled TFWs who have maintained their legal status, acquired work experience in Canada, and paid taxes.

According to CFIB's Monthly Business Barometer, skilled labor shortages remain the second highest constraint on sales and growth for 39% of small businesses.

In a 2024-2025 survey of businesses that had turned to the TFWP to meet their labor market needs, 57% said they would have to scale back their growth plans if they couldn't retain or have access to foreign workers and 52% would be unable to fill orders or render services. Nearly a quarter (24%) would have to reduce their hours of operation and 18% stated that it was very likely that they would have to close their operations.