Canada’s TFWP Sees Major 2025 Updates: What You Need to Know

What’s Changing in Canada’s Temporary Foreign Worker Program: A 2025 Update

Prime Minister Mark Carney has announced that the federal government is actively working on changes to the Temporary Foreign Worker Program (TFWP). This announcement, made during a Liberal caucus meeting in Edmonton, signals a more targeted and strategic approach moving forward.

While exact details of the proposed changes haven’t been shared yet, it’s clear that the TFWP is under the microscope—both in terms of how it supports Canada’s labour market and how it impacts Canadians’ job opportunities.

Key Highlights

• The government plans to make the TFWP more focused on specific sectors and regions with pressing labour shortages.
• Recent changes to the program aim to better align with Canada’s economic goals and regional unemployment rates.
• Opposition leader Pierre Poilievre has criticized the program, arguing it reduces opportunities for Canadian workers.
• TFWP work permit issuances have dropped by 50% in early 2025 compared to the same period in 2024.
• New restrictions include wage increases, LMIA processing freezes in high-unemployment areas, and limits on spousal work permits.

Why the Temporary Foreign Worker Program Matters

Canada’s Temporary Foreign Worker Program plays a vital role in filling short-term labour shortages across various sectors. Whether it’s agriculture, construction, or healthcare, the TFWP helps employers hire international talent when no suitable Canadian candidates are available.

To do this, employers must first secure a Labour Market Impact Assessment (LMIA). This document—issued by Employment and Social Development Canada—confirms that hiring a foreign worker will have a neutral or positive impact on the Canadian labour market.

In other words, it’s meant to ensure that Canadians and permanent residents aren’t pushed out of job opportunities by temporary foreign workers. But not everyone agrees that the system is working as intended.

The Political Landscape: Support and Criticism

While Prime Minister Carney is leaning into a more refined and strategic version of the TFWP, not everyone is on board. Conservative Party leader Pierre Poilievre has strongly criticized the program, going so far as to call for its elimination. He argues that it reduces job opportunities for Canadians and contributes to wage stagnation in some sectors.

This political tension is heating up as the government continues to review the program’s effectiveness and economic impact. Expect this debate to remain front and centre as Canada fine-tunes its approach to temporary labour migration.

Recent Changes to the TFWP: What’s Already in Motion

Over the past 18 months, the federal government has introduced several changes to reduce reliance on the TFWP and ensure it complements the broader labour market strategy. Here’s a breakdown of what’s been implemented so far:

1. Tighter Admissions Targets

In 2025, the government capped net new TFWP admissions at 82,000 workers. This move is part of a broader initiative to scale back immigration targets overall and focus more on sustainable growth.

2. LMIA Processing Moratoriums in High-Unemployment Areas

If a region has an unemployment rate of 6% or higher, the federal government has temporarily stopped processing low-wage LMIAs there. This ensures that local job seekers are prioritized in areas where the labour market is struggling.

3. Wage Threshold Increases

For high-wage TFWP streams, employers must now offer wages that are at least 20% above the regional median. This helps prevent wage suppression and ensures that foreign workers are being brought in for truly high-value roles.

4. Lower Caps on TFWP Workforce Share

Employers are now limited in how much of their workforce can consist of TFWP workers. This change encourages businesses to invest more in recruiting and retaining Canadian workers.

5. Restrictions on Spousal Open Work Permits

Spouses of TFWP holders can now only apply for spousal open work permits (SOWPs) if the principal worker is employed in a TEER 0 or 1 occupation, or certain in-demand TEER 2 or 3 roles. Plus, the worker must have at least 16 months left on their permit.

What’s Happening With Work Permit Numbers?

According to government data, temporary residence numbers are declining. From January to June 2025, work permit issuances dropped by 50% compared to the same period in 2024. In that same timeframe, only 33,722 net new TFWP work permits were issued.

This suggests that the recent policy changes and processing limits are already having a substantial impact. Whether this trend will continue depends on how further changes are implemented in the months ahead.

What This Means for Employers and Foreign Workers

If you’re an employer who relies on temporary foreign workers, or if you’re an international worker hoping to come to Canada, it’s essential to stay up to date. Changes to eligibility, wage requirements, and LMIA availability can affect your ability to hire or work in Canada.

For employers, it may be time to reassess your hiring strategy, especially if you’re in a region with higher unemployment. For workers, understanding which occupations and regions are still in demand will be key to planning your move.

Looking Ahead: A More Strategic TFWP

While Prime Minister Carney hasn’t yet shared specifics about upcoming changes, the message is clear: the TFWP will become more targeted. That means a shift away from broad usage and toward addressing very specific labour shortages in certain sectors and regions.

This aligns with broader efforts to tailor immigration and work permit programs to support Canada’s evolving economic needs. Programs like the Manitoba PNP and others have already adopted more targeted approaches, and it looks like the TFWP is next in line.

Final Thoughts

Canada’s Temporary Foreign Worker Program is in a period of transformation. With political pressure, economic shifts, and policy reforms all converging, both employers and workers will need to stay agile and informed.

We’ll keep an eye on the situation and provide updates as more details emerge. In the meantime, it’s a good idea to review your eligibility, stay current on LMIA rules, and explore alternative immigration pathways if needed.

Looking for more insights on Canadian immigration programs? Check out our guide to the top provincial nominee programs or learn how the Manitoba PNP could be a fit for your goals.

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