The Canadian government is set to implement further reforms to the Temporary Foreign Worker Program (TFWP), the primary channel for employers to hire foreign nationals. Prime Minister Mark Carney, addressing the Liberal caucus in Edmonton on September 10, emphasized that the program “must have a focused approach that targets specific, strategic sectors, and needs in specific regions.” While work is underway to achieve these objectives, no additional details were provided, according to a report by CIC News.
The TFWP requires employers to obtain a Labour Market Impact Assessment (LMIA) before a work permit can be issued. The program has faced tighter restrictions over the past year, and opposition leader Pierre Poilievre has called for its abolition, arguing that it limits job opportunities for Canadians.
Over the last 18 months, Ottawa has introduced several measures to refine the program, including a target of 82,000 net new TFWP admissions for 2025, a moratorium on low-wage LMIA processing in regions with unemployment above 6%, and a 20% increase in the wage threshold for high-wage positions above the regional median. Caps on the share of a company’s workforce that can be hired through the program have also been reduced.
Changes have also impacted spousal open work permits (SOWPs), which are now restricted to spouses of workers in TEER 0 or 1 occupations, or selected in-demand TEER 2 and 3 roles, provided the TFWP holder has at least 16 months remaining on their permit.
Government data highlights the effect of these reforms: between January and June 2025, overall work permit issuances fell by 50% year-on-year, with only 33,722 net new TFWP permits issued during the period.
These updates reflect Ottawa’s continued effort to balance the needs of Canadian employers with protections for the domestic workforce.
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