Canada Closes the Preferential Window: What this Means for Aspiring Punjabis

By KBS Sidhu, Former Special CS, Punjab

The Punjab Government, industry bodies, NGOs, educational institutions—including universities—and venture capitalists must collaborate to create meaningful and gainful employment opportunities.

Canada Closes the Preferential Window

Canada has long served as a dream destination for ambitious, educated, and hardworking youth from Punjab and other parts of India. With its clean cities, generous healthcare, safe streets, and promise of a better life, Canada became more than just a foreign land—it became a second homeland. But that dream just became harder to reach.

On March 25, 2025, Immigration, Refugees and Citizenship Canada (IRCC) officially removed the bonus Comprehensive Ranking System (CRS) points for arranged employment under the Express Entry program. The earlier provisions—200 points for senior-level job offers and 50 points for other skilled positions—are now gone. This marks a major shift in Canada’s economic immigration strategy and has significant implications for Indian immigrants, particularly those from Punjab.

The change affects both current candidates in the Express Entry pool and future applicants. IRCC has cautioned that CRS scores may take some days to fully reflect the updated system. But the direction is clear: Canada is turning inward, rethinking how it selects immigrants amid broader political and economic upheaval.

Background: Canada's Gradual Immigration Retrenchment

This decision is part of a broader tightening of Canada's immigration policy. For years, the Trudeau-led Liberal government was seen as immigration-friendly, pursuing ambitious targets to address labor shortages and an aging population. But by late 2024, Prime Minister Justin Trudeau acknowledged "mistakes" in the system, including exploitation by fake colleges and misuse by large corporations.

The Liberal government subsequently announced a 20% reduction in permanent resident admissions, targeting around 395,000 newcomers in 2025, down from 485,000 in 2024. It also committed to scaling back temporary residents, including international students and foreign workers. What was once a welcoming stance toward immigration has shifted sharply—driven by political necessity and mounting public frustration.

Why Canada Made the Move

The decision to remove job offer points is driven by both integrity and economic concerns. There has been a surge in the fraudulent buying and selling of LMIA-supported job offers¹. These job offers were being used primarily to manipulate CRS scores rather than to genuinely fulfill labor market needs.

From an economic perspective, Canada's situation is complex. Following the COVID-19 pandemic, severe labor shortages prompted the government to open its doors wider. But that population growth has brought unintended consequences—skyrocketing housing costs, overburdened infrastructure, and strained public services.

Canada’s unemployment rate has risen to 6.6%, and many new immigrants are struggling to find jobs that match their qualifications. Public sentiment, once supportive of immigration, has begun to shift—fueled by concerns that infrastructure and housing can't keep pace.

A Policy Change with Political Undertones

This immigration overhaul also comes in the heat of a federal election campaign. Following Trudeau’s resignation, new Prime Minister Mark Carney has called a snap election for April 28, 2025. Immigration has emerged as one of the key battleground issues.

The Liberal Party is defending its revised target of 395,000 newcomers, promising better oversight and system reform. The Conservative Party under Pierre Poilievre is calling for a pause in immigration growth until housing and infrastructure catch up. The NDP, led by Jagmeet Singh, is advocating for pro-worker immigration reforms and stricter rules to prevent exploitation.

What was once a unifying topic across party lines—Canada’s proud legacy of immigration—is now a divisive political issue.

Trade Tensions with the U.S. Add Fuel to the Fire

As if domestic issues weren’t enough, Canada is also grappling with renewed trade tensions with the United States. In early 2025, President Donald Trump imposed sweeping tariffs on Canadian goods, sparing only oil and energy products. This trade war has further clouded Canada's economic outlook and heightened uncertainty.

In a bizarre twist, Trump even suggested that annexation, as the 51st state of USA, would solve the trade problem—rhetoric dismissed by Canadian politicians but indicative of how volatile the bilateral relationship has become.

In this climate of economic instability, political flux, and global unpredictability, Canada’s decision to tighten immigration may be as much about optics as policy.

The Indian and Punjabi Impact: A Harder Road Ahead

Few countries are likely to feel the impact of this decision as acutely as India—particularly Punjab. Indian nationals are consistently among the top recipients of Canadian study permits and work visas. For countless Punjabi youth, Canada represented a tried-and-tested route: pursue education, obtain a job offer, boost CRS scores, and eventually secure permanent residency.

The removal of job offer points directly strikes at this model.

Education consultants across Punjab report that students already in Canada are panicked. They are now confronting a slew of additional challenges:

• Increased financial proof requirements (raised from CAD $10,000 to over $20,000)

• A cap on study permits, limiting approvals to around 360,000 in 2024

• Abolition of fast-track programs like the Student Direct Stream

• New restrictions on off-campus work hours

Combined, these measures significantly tighten the pathway to permanent residency, leaving many students and skilled workers in limbo.

Rising Social Tensions and Erosion of Multiculturalism

These policy changes come at a time when social cohesion in Canada is also under strain. Incidents of racial discrimination and hate crimes—particularly targeting South Asian and Black communities—have seen an uptick. In 2023 alone, nearly half of all hate incidents were motivated by race or ethnicity, with Punjabi youth reporting increased harassment, especially in housing and employment sectors.

This shifting environment poses another challenge to the “Canadian dream”—a dream not just of economic opportunity, but of dignity, safety, and acceptance.

Systemic Issues Remain Unaddressed

While removing job offer points may curb fraudulent practices, critics argue it fails to address deeper issues. The move does little to tackle Canada's chronic underinvestment in housing, urban planning, or immigrant integration.

Supporters say it's a necessary course correction—one that rebalances the system in favor of human capital factors like education, language proficiency, and Canadian experience. But without structural reforms, the risk remains that Canada will continue to attract high-potential immigrants without giving them the tools to thrive.

A Wake-Up Call for Punjab

Canada’s decision to eliminate bonus CRS points for job offers is more than a policy shift—it is a loud and clear signal. The window of opportunity for economic migration is narrowing. And for thousands of bright, driven, and skilled Punjabi youth, the traditional routes to immigration are closing fast.

Now, the onus shifts to Punjab.

The Punjab Government, industry bodies, non-governmental organizations, educational institutions, and university vice-chancellors must work together to create meaningful, gainful employment opportunities. It’s time to reinvest in our youth—to build a local ecosystem that retains talent instead of exporting it.

Thousands of Punjabi youngsters had looked to Canada as a future home. With that door closing, Punjab must become the homeland they no longer wish to leave.

March 26, 2025