Canada to Shake Up the Temporary Foreign Worker Program

Prime Minister Mark Carney has announced that Canada is preparing changes to its Temporary Foreign Worker Program (TFWP) to make it more targeted, strategic, and regionally responsive. With concerns growing over labour market fairness and the program’s impacts on Canadian workers, these shifts may reshape how foreign workers are brought in under work permits.

Significance of the Proposed TFWP Changes

The proposed changes to Canada’s Temporary Foreign Worker Program aim to prioritize strategic sectors and regional needs. This shift could significantly impact employers, foreign workers, and the Canadian labor market.

1. More Strategic Sectoral Targeting

Carney emphasized that the TFWP “must have a focused approach that targets specific, strategic sectors, and needs in specific regions.” This means the program won’t be one-size-fits-all anymore; sectors experiencing acute labour shortages may be prioritized.

2. Strengthened Protections for Canadian Workers

Under the current TFWP, employers must obtain a Labour Market Impact Assessment (LMIA), which ensures that hiring foreign workers does not negatively affect job opportunities for Canadian citizens and permanent residents. Adjusting the program with stricter regional criteria or higher wage thresholds aims to better protect local workforces.

3. Adjustments to Low-Wage and High-Wage Streams

Already, changes are underway: there’s a moratorium on low-wage LMIA processing in high-unemployment regions; the high-wage stream now requires wages 20% above regional median; employer workforce caps are being lowered; and spousal open work permit eligibility is being limited to certain occupations with TEER 0‑3 depending on demand.

4. Sharp Decrease in Permit Issuances Signals Tightening Oversight

From January through June 2025, work permit issuances under TFWP dropped by about 50% compared to the same period in 2024. Only 33,722 net new permits were issued in that timeframe—suggesting that regulatory changes and labour market constraints are already affecting how the program operates.

5. Political and Public Accountability Increasing

Opposition leader Pierre Poilievre has criticized the TFWP, arguing it limits job opportunities for Canadians. Carney’s remarks suggest the government is responding to that criticism and seeking a balance between economic need and civic fairness. For example, there’s discussion of review or reform rather than full abolition, and adjustments to LMIA and employment rules.

What These Changes Might Mean for Applicants and Employers

• Employers in regions with high unemployment may face delays or restrictions in hiring foreign workers — especially for low wage positions.

• Applicants may need higher wages, more specialized roles, or job offers in specific regions or high-demand sectors.

• Immigration pathways with spousal permits or open work permits may become more limited unless tied to in-demand occupations.

• Work permits may be granted with more regional specificity — favouring provinces / areas with labour shortages.

External Links & Further Context

For more on how labour market impact assessments work, see this guide to Canada’s LMIA requirements.
To explore whether work permits under TFWP have surpassed set targets and how Carney’s claims align with recent data, this article provides current insights: Have work permits under the Temporary Foreign Worker Program surpassed targets as Poilievre claims.

Connection to Other Immigration Developments

Recent PNP / provincial draws (including Newfoundland & Labrador’s recent over 200 invites under NLPNP and AIP) show provinces are playing a growing role. For those planning immigration, understanding the shifts in TFWP can help in choosing whether to pursue permanent pathways via PNPs or focus on temporary work.
(See more on NL’s draw here: Newfoundland shocks with latest draw over 200 immigration invitations issued)

The proposed changes to the TFWP reflect a broader effort by the Canadian government to balance labour demand, protect Canadian workers, and ensure that immigration programs are fair and strategically aligned. While full details are not yet released, the direction is clear: the program will become more selective, more regionally sensitive, and more closely tied to labour market realities.

If you want clarity on how these possible changes affect your eligibility or how to adapt your strategy, visit A2Zimmi or book a consultation here for tailored guidance.