The Impact of Canada’s Recent Changes to the Temporary Foreign Worker Program

Canada has recently implemented significant changes to the Temporary Foreign Worker Program (TFWP), causing disruptions in various sectors such as fast food, hospitality, agriculture, and retail.

In Quebec, franchise owners of A&W are expressing concerns that the lack of access to temporary foreign workers may lead to reduced operating hours or even closures of some locations. Similar challenges are being faced in northern British Columbia and Ontario, where employers are struggling to fill positions despite active recruitment efforts.

According to data from Immigration, Refugees, and Citizenship Canada, arrivals under the TFWP dropped to a two-year low in October 2025, attributed to stricter LMIA rules, regional low-wage moratoriums, and enhanced enforcement measures.

The federal government justifies these reductions as measures to alleviate housing pressures, safeguard wages, and enhance youth employment opportunities. However, critics argue that the rapid pace of the cuts is resulting in labor shortages that are difficult to address promptly, particularly in smaller communities.

As the TFWP caps are slated to decrease from 82,000 in 2025 to 50,000 by 2027, businesses are warning of potential deepening impacts unless targeted exemptions or adjustments are implemented.