Canada prepares to revise Temporary Foreign Worker Program

The Canadian government is working on changes to the Temporary Foreign Worker Program ( TFWP), its main pathway for employers to hire foreign nationals. The program, which requires a labour market impact assessment (LMIA) before a work permit can be issued, has already seen several restrictions in the past year aimed at scaling back its use.

Prime Minister Mark Carney, addressing the Liberal caucus in Edmonton on September 10, said the program “must have a focused approach that targets specific, strategic sectors, and needs in specific regions.” He confirmed that the government is actively working toward these objectives but did not disclose further details, according to a CIC News report.

The TFWP has drawn criticism from the opposition. Conservative Party leader Pierre Poilievre has claimed that the program reduces job opportunities for Canadians and has called for its abolition.

Over the last 18 months, Ottawa has announced measures including a target of 82,000 net new TFWP admissions for 2025, a moratorium on low-wage LMIA processing in regions where unemployment exceeds 6%, and an increase in the wage threshold for high-wage positions to 20% above the regional median. At the same time, caps on the share of a company’s workforce that may be employed through the program have been lowered.

Changes also extend to spousal open work permits (SOWPs). These are now restricted to spouses of workers in TEER 0 or 1 occupations, or selected in-demand TEER 2 and 3 jobs, and only if the TFWP holder has at least 16 months left on their permit.

According to government data, overall work permit issuances between January and June 2025 dropped by 50% compared to last year. In the same period, only 33,722 net new TFWP permits were issued.