Why does the PEQ change matter for businesses in Quebec?

It creates uncertainty for employers that planned hiring and retention around a known program. If timelines lengthen or eligibility narrows, staffing gaps can widen. That can raise wages, boost overtime, and delay projects. Investors should watch disclosures on vacancies, retention costs, and backlog conversion, especially at firms with heavy Quebec operations and reliance on temporary foreign workers.

Which sectors appear most exposed to labour risk now?

Construction, healthcare, manufacturing, agriculture, and hospitality rely more on hard‑to‑fill roles. Municipal contractors can also face schedule risk if crews are short. Companies with single‑site operations in Quebec and high dependence on temporary foreign workers may feel the impact fastest, shown by longer recruitment cycles, higher reliance on agencies, and rising per‑hire costs.

How could this policy shift affect margins and cash flow?

Margins may compress if wages and bonuses rise faster than prices. Fixed‑price or regulated contracts are more vulnerable. Firms with dynamic pricing or frequent tender resets can defend spreads better. Cash flow could tighten if project milestones slip or working capital needs increase due to staffing gaps, overtime, or onboarding costs tied to new requirements.

What should investors track over the next quarter?

Watch MD&A language on staffing, overtime, and immigration processing. Look for hiring funnel changes, shifts to automation capex, and redeployments from other provinces. Note any contract renegotiations, surcharges, or schedule resets. Monitor union discussions and municipal procurement updates for clues on service continuity and potential delays at Quebec‑exposed employers.

Law and Government

February 08: Quebec PEQ End Raises Labor, Margin Risks for Businesses

ByHuzaifa Zahoor February 9, 2026February 9, 2026

PEQ Quebec has ended, with the government shifting to the PSTQ program. Protests in seven Quebec cities signal uncertainty for employers that rely on immigrant talent. We see risks around labor supply, wage inflation, retention, and project timelines as temporary foreign workers face status and processing questions. For investors in Canada, Quebec‑exposed names may see near‑term margin pressure. This report outlines the main risks, watch items, and practical steps to manage portfolio exposure to Quebec immigration policy changes.