Canada expands Temporary Foreign Worker program, raising employer cap to 15% and extending permits to two years

Ottawa announced on Friday that the Temporary Foreign Worker (TFW) program will be reformed to let eligible employers increase the share of foreign workers in their workforce from 10% to 15% and to double the validity of Labour Market Impact Assessments from one to two years. The changes, outlined in the recent budget, require provinces and territories to request permission on behalf of employers in areas identified as having local labour shortages. Ontario and Alberta have opted out of a related rural hiring initiative introduced earlier this year.

Jobs and Families Minister Patty Hajdu said the revisions, developed with provincial and territorial input, are intended to keep the TFW program “a targeted and responsive tool that supports workforce needs and helps communities and businesses continue to thrive.” The budget earmarked $151.5 million for Employment and Social Development Canada to fund the updates.

The program, which primarily serves low-wage sectors, already permits a 20% foreign-worker share in certain industries such as health care, construction and food processing. Early childhood educators will now be added to the list of high-priority occupations eligible for additional foreign workers.

Advocacy groups and the Conservative Party have criticized the TFW system, arguing that tying workers to a single employer can lead to mistreatment. Migrant Workers Alliance for Change executive director Syed Hussan said the government is expanding employer access to foreign workers “without providing them any stability or assurance that they will be able to obtain permanent residency.” He also questioned the expanded cap for early childhood educators, noting that many trained international students are already available for those roles.