Canada to cut temporary foreign workers as PM Carney sets 2027 target on reducing residency share

 

The Canadian government has announced a major overhaul of its temporary foreign worker policy, with Prime Minister Mark Carney saying the scheme will be tightened and refocused on specific sectors and regions. The move has raised concern among skilled professionals who depend on the programme to live and work in Canada.

Carney’s rationale for change

Carney told his caucus that the Temporary Foreign Worker Program requires “a focused approach” that better aligns with labour needs while easing pressure on housing, infrastructure and social services.

He also outlined a broader target: to reduce the share of non-permanent residents from about seven percent of Canada’s population to five percent by the end of 2027. If implemented, this would directly shrink the pool of temporary workers.

What the changes mean for professionals

Full details have not yet been released, but analysts expect tougher Labour Market Impact Assessment (LMIA) requirements, stricter documentation, and limits on which roles and regions can use foreign hires quickly.

Employers in sectors such as technology and healthcare worry these measures will make hiring more difficult. Industry groups have cautioned that abrupt tightening could slow projects and hamper growth, even as critics argue the current system suppresses wages and strains local services.

Balancing competing pressures

Carney described the reforms as part of “responsible immigration management,” narrowing the programme to strategic sectors where shortages are clear and reducing reliance on temporary staff. The government will consult provinces, employers and settlement agencies through the autumn before the new rules take effect.

For many foreign professionals, from healthcare workers to IT specialists, the announcement has created uncertainty around visa renewals and long-term prospects. Business leaders and advocacy groups are urging Ottawa to ensure any reforms also include clearer pathways to permanent residency for high-demand workers.