Canada Loosens Temporary Foreign Worker Rules, Raising Employer Caps and Extending Permits
The Canadian federal government announced reforms to the Temporary Foreign Worker program, increasing the cap on foreign workers for eligible employers from 10 per cent to 15 per cent and extending Labour Market Impact Assessment validity from one to two years. The changes have drawn support from business groups and criticism from migrant rights advocates and the Conservative Party.
Ottawa is loosening rules for the Temporary Foreign Worker (TFW) program, allowing select employers to hire more foreign workers and doubling the length of time they can work for the same employer. Under the reforms announced by the Liberal government, eligible employers will be permitted to staff up to 15 per cent of their business with foreign workers, an increase from the 10-per-cent cap established in 2024. Certain sectors facing chronic shortages, such as health care, construction, and food processing, already operate under a 20-per-cent cap.
To access the higher limit, provinces and territories must request permission from Ottawa on behalf of eligible employers in communities identified as having a local labour shortage. Ontario and Alberta chose not to opt into a similar rural TFW program mechanism introduced earlier this year. Additionally, Labour Market Impact Assessments (LMIAs) will remain valid for two years instead of one, enabling employers to keep temporary foreign workers employed for twice as long as before.
Early childhood educators are being added to the list of high-priority sectors where a labour shortage is critical enough to justify hiring additional foreign workers. The government earmarked $151.5-million for Employment and Social Development Canada in Thursday’s budget to execute the program reforms.
The changes have generated divided reactions. Business supporters, including the Canadian Federation of Independent Business, argue the reforms help businesses thrive and address workforce needs. However, Syed Hussan, executive director of the Migrant Workers Alliance for Change, criticized the reforms for increasing employer access without providing stability or assurance of permanent residency for workers. Hussan also questioned the need for expanded foreign worker caps for early childhood educators, noting that thousands of former international students trained in the field are available. Critics argue the changes exacerbate risks of employee mistreatment by tying workers to employers without offering permanent residency pathways.
Conservative Leader Pierre Poilievre has called for the TFW program to be abolished altogether, linking the number of temporary foreign workers to high youth unemployment rates. Some economists dispute that connection.