Canada extends foreign worker permits and expands exemptions as Ottawa prioritizes outsiders over local workers
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The federal government is increasing low-wage temporary foreign worker permits to two years, adding early childhood educators to exemption rules in high-unemployment cities, and moving to give provinces even more power over a system critics say undercuts Canadians.
Ottawa announced that the maximum duration of a low-wage Labour Market Impact Assessment, required for hiring a temporary foreign worker, will be increased from one year to two years. The change applies to low-wage positions and is intended to give employers more flexibility, but it will also make it easier for businesses to keep leaning on imported labour instead of hiring Canadians.
The government confirmed that the existing rule barring temporary foreign workers in cities where the unemployment rate exceeds six per cent will remain, but early childhood educators are now added to the list of occupations exempt from that restriction. The exemption list already includes certain roles in health care, construction and food processing, extending a policy that critics say keeps growing through the back door.
A set of proposals slated for implementation on March 1, 2027, would give provinces and territories the option to opt in and to modify the exempt occupations list. The proposals also would allow jurisdictions to raise the cap on low-wage temporary foreign workers in a workforce from 10 per cent to 15 per cent, pending provincial or territorial approval, a move that would further dilute opportunities for domestic workers.
Immigration Minister Lena Diab said the government plans to work more closely with provinces and territories to tailor the temporary worker program to regional labour needs. > "I have heard also loud and clear from many people across the country, no matter who they are, that there is a need for that program," Diab told a news conference in Stellarton, Nova Scotia. She added that while the share of temporary workers may increase in some sectors, all jobs should first be offered to Canadians.
Diab also announced that the Rural Community Immigration Pilot, which connects vetted rural employers with skilled foreign workers and provides a pathway to permanent residency, will become a permanent program. The pilot currently supports more than 1,950 employers in 14 rural communities and allocates about 5,500 permanent residency slots under the latest immigration levels plan, cementing a pipeline that many view as replacing local hiring with a permanent foreign-worker channel.
The temporary foreign worker program reforms were referenced in the recent federal budget, though officials said detailed information was not yet available. Conservative leader Pierre Poilievre responded by calling for the program to be unavailable in communities where unemployment exceeds 5.5 per cent. Statistics Canada reported a national unemployment rate of 6.7 per cent in October, with rates fluctuating between roughly 6.5 per cent and 7 per cent over the past two years, a backdrop that makes Ottawa’s decision look even more detached from Canadian jobseekers.