Susan Gong, CPA, CA, RCIC — Founder & CEO, Altec Global Inc.
Canada is preparing for meaningful changes to its Temporary Foreign Worker Program (TFWP). On September 10, 2025, Prime Minister Mark Carney addressed the Liberal caucus and revealed that the federal government is moving toward a more precise, needs-based approach in how temporary foreign workers are admitted—focusing on particular industries and specific regions rather than a broad-brush system.
Drawing from my experience working with hundreds of clients through TFWP and LMIA, here are the most important updates, what they mean, and what you—and your employer—should be doing now to adapt.
What’s Changing
Strategic Focus on Industry & Region
The government wants the TFWP to better align with labour market needs in specific sectors and regions. This means that rather than opening broadly, approvals will prioritize areas that truly need foreign labour.Net New Admission Target
For 2025, Canada has set a net new admissions target of 82,000 temporary foreign workers.Limiting Low‑Wage LMIA in High‑Unemployment Areas
Regions in Canada with higher unemployment rates (6% or more) may see a moratorium on processing low‑wage LMIA applications. The aim is to protect local job seekers and lessen pressure on local labour markets.Higher Salary Thresholds for High‑Wage Stream
“High‑wage” temporary work permit categories will face stricter wage requirements—wages will need to be set significantly above local medians to truly qualify.Employer Caps on Foreign Workers
Employers may be limited in the proportion of their workforce that can be filled via TFWP. This cap varies by region and sector.Tighter Rules for Spousal Open Work Permits (SOWP)
The principal TFWP applicant must hold a job in TEER 0 or 1 occupations, or certain in‑demand TEER 2/3 roles.
The work permit of the main applicant must have at least 16 months remaining to qualify.
Substantial Drop in Permit Issuance
Between January and June 2025, new work permits under TFWP dropped by about 50% compared to the same period in 2024. Only ~33,722 net new TFWP permits were issued in that half‑year.
Why These Changes Matter
These reforms represent a shift in Canada’s strategy on immigration and foreign labour:
Protecting Local Labour Markets
By raising wage thresholds, pausing low‑wage permits in high‑unemployment regions, and capping foreign worker proportions in companies, the government aims to ensure Canadians and permanent residents have fair access to job opportunities.Efficiency & Alignment with Economic Needs
Prioritizing key industries (e.g., healthcare, agriculture, manufacturing) and geographic regions ensures foreign labour is used where it is most needed—not uniformly or almost by default. This helps avoid both labor shortages in critical sectors and misallocation elsewhere. Staffing Industry Analysts+2UNA+2Improved Standards & Fairness
Increasing the wage thresholds and tightening eligibility for spousal work permits help ensure that temporary foreign workers are treated fairly, wage competition is reasonable, and program abuse is reduced.
What You Should Do
If you are planning to apply under TFWP (or are an employer using it), these steps can help you stay ahead and adapt:
For Applicants (Workers):
Confirm whether your occupation falls under a priority or in‑demand sector or region. If so, prepare your documentation in advance.
Check whether your spouse will be eligible for an open work permit (does your occupation qualify, do you have enough time left on your work permit, etc.).
If not, consider alternative routes (e.g., Provincial Nominee Programs or other paths) while ensuring your credentials, earnings, and job offer align with what the government is increasingly demanding.
For Employers:
Review whether your job offers meet the new or proposed wage thresholds. Be prepared to adjust compensation if needed.
Make sure recruitment practices—including job postings, LMIA applications, and documentation—comply with new caps, and that you are aware of regional unemployment rates and their impact.
Monitor policy announcements closely. Because not all reform details are public yet, there may be changes that affect eligibility, program fees, or processing rules.
For Both Parties:
Keep an eye on official announcements from Immigration, Refugees and Citizenship Canada (IRCC), ESDC, and provincial governments.
Consider using Provincial Nominee Programs (PNPs) as backup or complementary pathways—they are often more flexible and better tuned to local needs.
Conclusion
Canada’s Temporary Foreign Worker Program is clearly entering a new phase: from broad access toward more targeted allocation. For applicants and employers alike, these reforms bring both challenges and opportunity. Those who understand the direction, prepare accordingly, and stay agile will be best positioned to benefit.
At 歡迎來到順達集團, we are committed to helping you navigate these changes—making sure you understand your options, prepare the right documents, and choose paths that align with both your goals and the evolving Canadian immigration landscape.
If you have questions or need help assessing whether you (or your employer) are ready for these changes, we’re here to assist. CONTACT US TODAY.