Canada Plans New Changes to the Temporary Foreign Worker Program (TFWP)
Prime Minister Mark Carney has announced that the federal government is preparing further adjustments to Canada’s Temporary Foreign Worker Program (TFWP), a program central to meeting labour shortages across the country.
Speaking at the Liberal caucus meeting in Edmonton on September 10, 2025, Carney emphasized that the TFWP must evolve into a “focused approach that targets specific, strategic sectors and regional needs.” While no concrete details were released, the Prime Minister made it clear that reforms are actively in the works.
What is the TFWP?
The Temporary Foreign Worker Program allows Canadian employers to hire foreign nationals when no Canadian citizens or permanent residents are available to fill critical labour gaps.
Before hiring, employers must complete a Labour Market Impact Assessment (LMIA), issued by Employment and Social Development Canada (ESDC).
- The LMIA ensures hiring a foreign worker will not negatively affect opportunities for Canadians.
- Employers must show proof of recruitment efforts, wage compliance, and working conditions before approval.
Opposition Criticism
- Pierre Poilievre, Leader of the Opposition, has criticized the program, arguing that it reduces job opportunities for Canadians.
- The Conservative Party has even suggested abolishing the TFWP altogether.
Government’s Adjustments to the TFWP Since 2024
Over the past 18 months, Ottawa has taken steps to tighten the program and reduce reliance on temporary workers.
| Policy Change | Details |
|---|---|
| Annual Target | Net new TFWP admissions capped at 82,000 for 2025. |
| Low-Wage Jobs | Moratorium on low-wage LMIA applications in regions with unemployment rates 6% or higher. |
| High-Wage Jobs | Employers hiring under the high-wage stream must now pay 20% above the regional median wage. |
| Employer Caps | Reduced percentage of workforce allowed under TFWP. |
| Spousal Open Work Permits (SOWPs) | Restricted only to spouses of workers in TEER 0 or 1 jobs, or select TEER 2–3 in-demand roles, with at least 16 months left on the worker’s permit. |
Impact of These Measures
- Work permit issuances fell by 50% between January and June 2025 compared to the same period in 2024.
- Only 33,722 net new TFWP permits were issued in the first half of 2025, far below the annual target.
- These figures suggest the government’s restrictions are already having significant effects on temporary worker inflows.
Key Takeaways
- The government intends to narrow TFWP’s focus to regional and sector-specific needs.
- Opposition parties are pushing for stronger action, with some calling for the end of the program.
- Current measures already demonstrate a sharp decline in work permit approvals, highlighting the balancing act between meeting labour needs and protecting opportunities for Canadians.
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