Canada Announces Reforms to Temporary Foreign Worker Program
The Government of Canada introduced targeted reforms to the Temporary Foreign Worker Program on November 6, 2026, extending LMIA durations for the Low-wage Stream and adding early childhood educators to priority exemptions. Further changes contingent on provincial opt-in are scheduled for March 2027.
On November 6, 2026, the Government of Canada announced targeted reforms to the Temporary Foreign Worker (TFW) Program designed to address labour market needs across the country. The measures take effect against a backdrop in which Canada’s economy added 214,000 private-sector jobs over the past year and the national unemployment rate fell to 6.5%. Temporary foreign workers currently make up approximately 1% of the Canadian labour force.
Effective immediately, Labour Market Impact Assessment (LMIA) applications submitted under the Low-wage Stream will have a maximum duration of up to two years, an increase from the previous one-year limit. Additionally, early childhood educators were added to the list of exceptions for LMIA processing in Census Metropolitan Areas (CMAs) where unemployment rates are 6% or higher.
Budget 2026 allocates $151.5 million over five years to support and enhance TFW Program service delivery. A further $82 million over four years was announced for the Migrant Worker Support Program.
Additional changes are proposed for implementation on March 1, 2027, contingent on provinces and territories opting in. Under these proposals, employers located in large CMAs with populations exceeding 250,000 and unemployment rates below 6% would receive targeted access for occupations outlined in the Canadian Occupational Projection System (COPS). Provinces and territories may also request flexibility allowing employers to hire temporary foreign workers for up to 15% of their workforce through the Low-Wage Stream, raised from the current 10% maximum. Priority sectors will continue to operate under the existing 20% workforce cap for temporary foreign workers.