Temporary Foreign Worker Arrivals Fall to Lowest Level in Two Years
Canada has recorded a sharp decline in the number of foreign workers entering the country under the Temporary Foreign Worker Program (TFWP), reaching the lowest monthly level seen in the past two years.
According to the latest government figures released in mid-December, only 3,215 new TFWP work permit holders arrived in Canada in October 2025, marking a significant slowdown in program intake.
Lowest Monthly Intake Since Data Tracking Began
The October 2025 figure represents the lowest number of TFWP arrivals since December 2023, when Immigration, Refugees and Citizenship Canada (IRCC) began publishing monthly arrival data.
This decline continues a downward trend that began after short-lived seasonal increases earlier in the year, particularly during periods of temporary demand in agriculture, hospitality, and food services.
Government Policy Changes Drive the Decline
The reduction in foreign worker arrivals is largely the result of deliberate policy shifts introduced by the federal government to scale back reliance on temporary labour.
Over the past two years, Ottawa has introduced a series of restrictive measures, including:
- A moratorium on processing low-wage Labour Market Impact Assessment (LMIA) applications in regions with unemployment rates of 6 percent or higher
- Increased wage thresholds for employers applying under the high-wage TFWP stream
- Reduced caps on the proportion of temporary foreign workers allowed in an employer’s workforce
- Stricter limits on spousal open work permits, now largely restricted to spouses of workers in highly skilled or priority occupations
These measures have collectively reduced employer access to the program and slowed new work permit approvals.
Rising Scrutiny and Political Pressure
The Temporary Foreign Worker Program has faced growing criticism in recent years. Critics argue the program has contributed to wage suppression, strained housing availability, and increased pressure on social services, particularly during a period of economic uncertainty.
In September 2025, the Conservative Party publicly called for the elimination of the TFWP altogether, citing concerns over youth unemployment and a weakening labour market.
Lower Targets Set for the Future
The federal government’s most recent Immigration Levels Plan further confirms a long-term pullback from the program. Canada has set a target of 60,000 new TFWP arrivals in 2026, representing a 27 percent reduction compared to the previous target of 82,000.
This adjustment signals a broader shift toward prioritizing permanent immigration pathways and domestic labour force participation.
Declines Also Seen in Other Temporary Streams
The downturn in TFWP arrivals aligns with similar declines across Canada’s other major temporary resident programs.
Arrivals under the International Mobility Program (IMP) have also decreased, reflecting tighter eligibility rules and changing labour market needs. At the same time, international student arrivals dropped to a two-year low in October, reinforcing a broader trend of reduced temporary resident intake.
What This Means Going Forward
The continued decline in temporary foreign worker arrivals suggests Canada is moving toward a more selective and regulated approach to temporary labour. Employers may face greater challenges filling roles through the TFWP, while foreign nationals may increasingly need to explore permanent residence pathways or employer-supported options under higher-skilled categories.
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