Canada’s Temporary Foreign Worker Program Reforms

Recently, Prime Minister Mark Carney announced upcoming reforms to Canada’s Temporary Foreign Worker Program (TFWP). The government aims to make the program more targeted, focusing on specific industries and regional labor needs.

Over the past year and a half, various restrictions have been introduced to the TFWP. These include a cap of 82,000 net new TFWP admissions for 2025, a moratorium on low-wage Labour Market Impact Assessments (LMIAs) in regions with unemployment above 6 percent, and a higher wage threshold for the high-wage stream. Additionally, employer caps on TFWP hires have been lowered, and access to spousal open work permits has been restricted to spouses of workers in top-demand occupations.

Government data reveals a significant decline in work permit issuances between January and June 2025 compared to the same period in 2024. Only 33,722 net new TFWP permits were approved during this time.

While the program has faced criticism from opposition parties, with calls for its elimination by the Conservatives citing limited job opportunities for Canadians, the government asserts that these reforms will strategically enhance the program to support the economy while safeguarding Canadian workers.