Canada is adjusting rules on hiring foreign labor

Photo: Sandro Schuh / Unsplash

What happened

The Government of Canada is working on changes to the Temporary Foreign Worker Program (TFWP). The program—under which a work permit is issued only after a Labour Market Impact Assessment (LMIA)—was already tightened over the past year to curb its use.

A targeted approach

On September 10, 2025, Prime Minister Mark Carney said the program “must have a focused approach that targets specific, strategic sectors, and needs in specific regions.” Although details have not yet been released, the statement confirms that the government is moving toward a more selective approach to attracting foreign labor.

Criticism of the program

The TFWP has long drawn criticism from the opposition. Conservative Party leader Pierre Poilievre has repeatedly argued that it reduces job opportunities for Canadian citizens and has called for its full repeal.

Tightening the rules

Over the past 18 months, the government has introduced a series of limits to reduce reliance on the TFWP:

• Target cap. A limit of 82,000 new positions under the program by 2025.
• LMIA moratorium. Applied to low-wage workers in regions where the unemployment rate exceeds 6%.
• The increase in the wage threshold for high-wage positions to 20% above the regional median. .
• Lower employer caps. The allowable share of foreign workers in companies was cut.

These steps indicate that Canada is moving toward tighter control of the program to protect the domestic labor market.

Source: The Economic Times

Quoting conditions of Prianproperty.com materials