September 18, 2025
Big Changes Ahead for Canada’s Temporary Foreign Worker Program (TFWP)
Canada’s Temporary Foreign Worker Program (TFWP) is once again under review, with major reforms expected in the near future. On September 10, 2025, Prime Minister Mark Carney announced during a Liberal caucus meeting in Edmonton that the government is preparing updates to ensure the program better serves strategic sectors and regional labour needs.
While full details have not yet been released, this announcement signals a significant shift in how Canada will manage temporary foreign labour moving forward.
Why the TFWP Matters
The TFWP is one of Canada’s primary pathways for employers to hire foreign nationals when no qualified Canadian workers are available. To access the program, employers must obtain a Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC).
An LMIA confirms that hiring a foreign worker will have a neutral or positive effect on Canada’s labour market—meaning jobs for Canadians and permanent residents are not displaced, and in some cases, economic opportunities may even expand.
Government’s Recent Adjustments to the TFWP
Prime Minister Carney’s statement comes after more than a year of gradual changes aimed at tightening the program and balancing labour market priorities. Some of these measures include:
- Annual admission targets: A cap of 82,000 net new TFWP positions in 2025.
- Regional restrictions: A moratorium on low-wage LMIA applications in areas with unemployment rates of 6% or higher.
- Higher wage thresholds: Employers using the high-wage stream must now offer salaries at least 20% above the regional median wage.
- Reduced workforce caps: Limits on how much of an employer’s staff can be filled through TFWP hires.
- Stricter spousal work permit rules: Spousal Open Work Permits (SOWPs) are now limited to spouses of workers in TEER 0 or 1 roles, or select in-demand TEER 2 or 3 occupations—with the added condition that the principal worker must have at least 16 months left on their work permit.
The Political Debate Around the TFWP
Not everyone agrees on the role of the TFWP. Opposition leader Pierre Poilievre has strongly criticized the program, arguing that it reduces opportunities for Canadian workers. The Conservative Party has even called for its complete abolition.
Meanwhile, the government has defended the TFWP as a tool to address urgent labour shortages, particularly in sectors such as agriculture, healthcare, and construction.
According to federal data, the number of work permits issued under the TFWP dropped sharply in early 2025:
- From January to June 2025, approvals fell by 50% compared to last year.
- Only 33,722 net new TFWP permits were issued in that same period.
What These Changes Mean for Employers and Workers
For employers:
- Expect tighter compliance requirements, especially around wages and workforce caps.
- Businesses in regions with higher unemployment may face longer delays or outright rejections of LMIA applications.
- Planning ahead will be essential, especially in industries reliant on seasonal or low-wage labour.
For workers:
- Fewer positions may be available through the TFWP.
- Priority will be given to high-skill occupations and regions with proven shortages.
- Spouses of foreign workers may have fewer opportunities to obtain open work permits unless their partner works in a high-demand job.
How MyWorld Immigration Can Support You
At MyWorld Immigration, we help both employers and workers adapt to Canada’s evolving immigration and labour market rules.
Our services include:
- ✅ LMIA Application Support – Ensuring employers meet recruitment, wage, and compliance requirements.
- ✅ Temporary Foreign Worker Applications – Guiding workers through work permit and documentation processes.
- ✅ Permanent Residency Pathways – Helping workers transition from temporary to permanent status through Express Entry, PNPs, and other programs.
- ✅ Strategic Immigration Planning – Advising businesses and families on long-term solutions amidst changing policies.
Final Thoughts
Canada’s Temporary Foreign Worker Program is entering a new phase, with the government promising reforms that will target specific regions and industries while prioritizing Canadian workers.
Whether you are an employer seeking talent or a foreign worker hoping to build a future in Canada, staying informed and prepared is essential.
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Website: www.myworldimmigration.com
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