Government plans changes to the Temporary Foreign Worker Program, i.e., Prime Minister Mark Carney announced that the federal government is preparing adjustments to the Temporary Foreign Worker Program (TFWP).
During his address to the Liberal caucus in Edmonton on Sept. 10, Carney explained that the TFWP moving forward “must have a focused approach that targets specific, strategic sectors, and needs in specific regions.” He emphasized that work is already underway to shape these objectives.
Despite the announcement, the Prime Minister did not provide any specifics about what the changes will look like or when they will take effect.
What Is The TFWP?
The Temporary Foreign Worker Program is Canada’s main system for issuing work permits to foreign nationals. Employers who wish to hire through the program must first obtain a Labour Market Impact Assessment (LMIA).
An LMIA, conducted by Employment and Social Development Canada, is designed to show that hiring a foreign worker will have either a neutral or positive impact on the Canadian labour market. In other words, the assessment must demonstrate that jobs for Canadians and permanent residents will not be lost, and in some cases may even increase, because of the hire.
Political Debate Over The Program
The program has recently become a topic of political debate. Opposition leader Pierre Poilievre has criticized the TFWP, claiming it has reduced job opportunities for Canadians. The Conservative Party has even called for the program’s complete elimination.
Recent Government Reforms
As the government plans changes to the Temporary Foreign Worker Program, let us look at the recent government reforms.
In the past 18 months, the government has already taken steps to reduce reliance on the TFWP. These measures include:
- Setting a target of 82,000 net new TFWP worker admissions for 2025
- Placing a moratorium on low-wage LMIA applications in regions with unemployment rates of 6% or higher
- Raising the wage threshold for the high-wage stream to 20% above the regional median wage
- Reducing the share of an employer’s workforce that can be filled through the TFWP
- Restricting spousal open work permits (SOWPs) to spouses of TFWP holders in TEER 0 or 1 occupations, or in select in-demand TEER 2 and 3 occupations, provided the worker’s permit has at least 16 months remaining.
Decline In Work Permits
Government statistics show that from January to June 2025, overall work permit issuances dropped by 50%. Within that timeframe, only 33,722 new TFWP permits were granted, highlighting the reduced scope of the program even before additional reforms were introduced.
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