Canada eyes stricter Temporary Foreign Worker rules as work permits fall 50%

The Canadian government is preparing fresh changes to the Temporary Foreign Worker Program (TFWP), its main channel for employers to hire foreign nationals. 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 work is underway toward these objectives but shared no further details, according to a CIC News report.

The TFWP, which requires a labour market impact assessment (LMIA) before a work permit can be issued, has already been subject to tighter restrictions in the past year. Opposition leader Pierre Poilievre has called for its abolition, arguing that the program reduces job opportunities for Canadians.

Over the last 18 months, Ottawa has announced 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 an increase in the wage threshold for high-wage positions to 20% above the regional median. Caps on the share of a company’s workforce hired through the program have also been lowered.

Changes have extended to 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 left on their permit.

Government data shows the impact of these measures: overall work permit issuances between January and June 2025 dropped by 50% year-on-year, with only 33,722 net new TFWP permits issued in the same period.