Canada TFWP Work Permits Hit 2-Year Low Amid Policy Shift

Canada’s Temporary Foreign Worker Program Sees Lowest Work Permit Arrivals in Nearly Two Years

Canada’s Temporary Foreign Worker Program (TFWP) has hit a new low when it comes to monthly work permit arrivals — and it’s not by coincidence. According to the latest data released by Immigration, Refugees and Citizenship Canada (IRCC), the number of new TFWP permits issued in November 2025 dropped to its lowest point since 2023, reflecting broader shifts in immigration policy.

Key Highlights

• Only 2,615 new work permits were issued under the TFWP in November 2025 — the lowest monthly number in nearly two years.
• This decline follows Canada’s decision to reduce its 2026 TFWP target by 27%, down to 60,000 permits.
• A moratorium on low-wage LMIA processing in high-unemployment regions has significantly slowed applications.
• 24 economic regions, including Toronto, Calgary, and Ottawa, are currently under the LMIA moratorium.
• TFWP faces increased scrutiny, with political parties and government shifting focus to more targeted immigration strategies.
• The broader immigration plan aims to reduce temporary residents to under 5% of Canada’s total population by 2027.

What’s Behind the Drop in TFWP Work Permits?

In November 2025, only 2,615 newcomers arrived in Canada through the Temporary Foreign Worker Program — the lowest monthly total recorded since December 2023. This dip isn’t a fluke; it’s the result of several policy changes aimed at rebalancing Canada’s approach to temporary immigration.

This trend corresponds closely with updates to the federal government’s Immigration Levels Plan. For 2026, Canada has slashed its annual TFWP intake target from 82,000 (as initially proposed) to just 60,000 — a 27% cut. It’s a clear signal that temporary work permits, especially under this program, are being more tightly controlled.

Why the Federal Government Is Pulling Back

One of the biggest reasons for the slowdown is the moratorium on Labour Market Impact Assessments (LMIAs) under the low-wage stream of the TFWP. Since September 2024, the government has stopped processing LMIA applications in regions where the unemployment rate is 6% or higher.

That means employers in cities like Toronto, Calgary, and Ottawa — all of which are currently on the moratorium list — can’t hire low-wage foreign workers through the TFWP for now. This list is updated every quarter and still includes 24 regions as of January 2026.

There is some movement, though. Cities such as Vancouver, Halifax, and Winnipeg were removed from the restricted list in the latest update, potentially reopening opportunities for employers and workers in those areas.

What’s an LMIA and Why Does It Matter?

If you’re unfamiliar, an LMIA is a document issued by Employment and Social Development Canada (ESDC). It confirms that there’s a need for a foreign worker to fill a job and that no Canadian worker is available to do it. Most applications to the TFWP require a positive or neutral LMIA from the employer before a work permit can be granted.

With the LMIA process paused in many economic regions, it’s no surprise that fewer permits are being issued overall.

How the TFWP Compares to the International Mobility Program

While the TFWP is Canada’s primary employer-driven work permit program, it isn’t the only route for foreign nationals to work in Canada. The International Mobility Program (IMP) offers another pathway, though it’s more limited in scope.

The IMP is mainly used in specific situations — like for recent international grads, intra-company transferees, or people covered by trade agreements. It doesn’t require an LMIA, but it also doesn’t offer the same broad access as the TFWP, which allows hiring across a wide range of occupations and sectors.

Political Pressure and Future Changes Ahead

The TFWP has faced increasing criticism over the past few years. Some political voices, including members of the Conservative Party of Canada, have even suggested abolishing the program altogether. In September 2025, Prime Minister Mark Carney acknowledged that changes were in progress to make the program more “focused” and better aligned with regional labour market needs.

While no specific details have been released yet, the goal is clear: target the TFWP more strategically, ensuring it supports critical sectors and regions where the need for workers is most urgent.

A Bigger Shift in Canada’s Immigration Strategy

The slowdown in TFWP permits is part of a broader effort by the federal government to reduce the number of temporary residents in Canada. The long-term goal? Bring the share of temporary residents down to less than 5% of the total population by the end of 2027.

It’s not just foreign workers being affected. The number of international student admissions is also being scaled back, with the 2026 intake target set at 155,000 — a dramatic drop from the previous notional target of over 305,000.

What This Means for Employers and Workers

For Canadian employers, especially those in affected regions, the recent changes mean it’s becoming trickier to access talent through the TFWP — particularly for low-wage roles. If you’re looking to bring in international talent, you’ll need to pay close attention to LMIA eligibility and regional unemployment rates.

For foreign nationals hoping to work in Canada, it’s more important than ever to explore all possible options. Depending on your background and work experience, you might qualify under other programs, such as the International Mobility Program or a provincial nominee pathway — like the Manitoba PNP.

Final Thoughts

There’s no denying it: things are shifting quickly when it comes to Canadian immigration, especially for temporary foreign workers. With stricter targets, paused LMIA processing in many regions, and a broader strategy to reduce overall temporary residency, those affected by these changes need to stay informed and adaptable.

If you’re an employer or a prospective worker trying to make sense of these changes, now’s the time to get expert advice.

Need help navigating your work permit options? Contact our team or book a free consultation today to find out what pathways are still open to you.